Estate Child Tax Credit: $1,750 per Child Payment Coming Soon

Minnesota legislators approved an innovative child tax credit program to reduce child poverty, offering a $1,750 credit per child, decreasing with household income until eliminated.

Source: La Grada

Estate Child Tax Credit: Last year, Minnesota legislators approved an innovative child tax credit program to significantly reduce child poverty for low- and middle-income families. The $1,750 child credit falls as household income rises until it is eliminated.

The average Minnesota-eligible family of two earned $2,500, or $1,250 per child, in 2023. This credit helped 210,000 households, per the Minnesota Department of Revenue.

This legislative session enhanced the child tax credit to include “safe harbor” safeguards, a Tim Walz priority.

Furthermore, the legislature has required the Department of Revenue to establish an advance payment system, which will allow families to qualify for a portion of the credit before the tax filing season.

2024 Child Tax Credit: Amount and Expected Timing

Who is eligible for the payment?

To qualify for the full $1,750 child tax credit in Minnesota, a single filer’s income must not exceed $29,500, or $35,000 for married couples filing jointly.

The credit is entirely phased out at $52,495 for families with one child; however, this threshold increases as the number of children increases. For example, a family with four children can still receive a portion of the credit if their income is up to $90,000.

Qualifying families will have the option to receive 50% of their total credit in advance payments before tax season beginning next year. The precise schedule for these payments, whether they are made monthly, bi-monthly, or quarterly, is still being determined, according to Paul Marquart, Commissioner of the Department of Revenue.

“The benefit of that is that you’re meeting families where their financial situations are and so it’s less likely a family will fall behind on their bills,” according to Marquart.

From July to December 2021, families received monthly remittances of $250 to $300 per child as part of the American Rescue Plan, a federal initiative that was implemented during the pandemic. This system is similarly structured.

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