Child poverty rate to reduce by a third due to Minnesota’s $ 1,750 child tax credit

Minnesota officials celebrates new child tax credit

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Top officials in Minnesota are in high spirits as they could reduce their child poverty by up to 33% because of a new child tax credit.

In the state’s 2023 session, a legislation on the new tax credit was passed. The state of Minnesota is now included in the 15 states along with the federal government that helps working families with children by offering a tax refund.

If qualified, certain Minnesotan families can now claim up to $ 1,750 per child. There will be income threshold qualifications such as a non-married filer should make less than or equal to about $47,000 to qualify, or if a married couple is filling jointly, they should make about $ 52,000. Any number of their children, though, can be claimed if their family qualifies.

More than half a million children from 300,000 households could benefit as estimated by the officials in Minnesota. This is according to Democratic Gov. Tim Walz’s official’ press release. Walz said that “I’m excited to see the benefits middle-class families are seeing from this legislation. By giving families with kids a boost, we’re helping families in the here and now and setting kids up for future success. This is an investment that will pay off for generations.”

According to the press release of Lt. Gov. Peggy Flanagan, before the 3rd week of the 2023 tax filing season, there’s already 90,000 children who benefitted from the tax credit. She said that the tax credit’s “outstanding impact on families across the state” is praiseworthy. “Whether it’s childcare, a flat tire, or an emergency medical bill, we’re helping Minnesotans land on their feet when life happens.”

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White House to give support to the bipartisan tax relief for American Families and Workers Act of 2024

During the pandemic-era, the child tax credit was expanded by the Biden administration. With refunds and direct payments, it resulted in millions of children nationwide to be above the poverty line in 2021. However, the lawmakers failed to expand the benefit at the time through a bipartisan resolution. This led to some 5 millions kids lived below the poverty line in 2022.

Nevertheless, there is hope in expanding the federal tax child credit. The existing federal child tax credit which is now just $ 1,600 per child, will have incremental increase each year until it reaches $ 2,000 by tax year 2025. This is the aim of the bipartisan Tax Relief for American Families and Workers Act of 2024.

The said bipartisan bill has just passed the House and at the beginning of the month was received by the Senate. If it will also pass the senate, the White House has announced its support.

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