In 2023, some families will increase their allowances for the Child Tax Credit, and more households will be eligible for this benefit by the end of the year.
During the COVID-19 pandemic, this federally expanded credit gained a great amount of popularity, but after the epidemic, it was no longer available and it disappeared for a while.
Benefits of the Expanded Child Tax Credit
Nonetheless, the expanded benefit, which included advance monthly payments of up to $300 per eligible child, proved beneficial for numerous families nationwide.
Government data indicates that approximately 2.9 million children were lifted out of poverty as a
result of this expanded federal Child Tax Credit (CTC). However, it remains uncertain whether families will have the opportunity to access a new expanded federal credit in the near future, as it requires bipartisan support from Congress.
A group of United States Representatives has introduced the America Family Act, legislation aimed at establishing the previously expanded and enhanced monthly child tax credit as a permanent benefit.
Advance Payments and Assistance
This legislation is intended to extend the benefits to more than the 61 million children who previously benefited from the expired expanded credit.
There is evidence that this legislation will have a significant impact, as seen by the fact that numerous states have already begun to implement the expanded CTC in order to provide aid to children who are in need.
Notably, Minnesota offers a credit worth up to $1,750 per qualifying child, which is higher than any other state’s offering for a similar type of credit.
Additionally, Minnesota allows eligible families to receive advance payments of the state child tax credit before filing their state tax returns.
Other states, including New York, Colorado, California, Maryland, Massachusetts, Vermont, New Mexico, and New Jersey, also offer some form of expanded child tax credit, each with its own set of eligibility requirements and rules for claiming the credit.
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