The Families First Project aims to make Minnesota the best state to raise a family! Progress is already underway. Our initiative helped enact a permanent, nation-leading, child tax credit.
By combining the Child Tax Credit and the Working Family Credit with the education tax credit and subtraction offered to parents to help lower some of their children's schooling expenses, we can make raising a family more manageable in today's economy. These tax benefits can significantly help families by increasing their tax return or lowering the amount of taxes owed. Unfortunately, 10-15 percent of eligible families have never taken advantage of these benefits.
Explore the information below to learn about the Child Tax Credit and additional tax benefits available to families in Minnesota to ensure you and your family take advantage of these cost-saving programs.
If you are a parish or other organization looking to promote the CTC, access the Child Tax Credit Toolkit here.
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What is the Child Tax Credit?
- The new Minnesota Child Tax Credit came about in part through the Families First Project - an initiative of the Minnesota Catholic Conference.
- The tax credit is a reduction in the amount you may owe on your taxes in a given year. If you do not owe anything, the amount you receive from the tax credit will be refunded to you via your tax return.
- The credit is worth up to an amount of $1,750 per child depending on your income, with no cap on the number of children to whom it can apply.
- This new credit will put money back into the pockets of Minnesota's most important providers – parents.
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Who qualifies for the credit?
- Persons with children 18 years old or younger.
- Persons who have lived in Minnesota for all or part of the previous tax year (certain exceptions exist for military members).
- Joint filers making less than $35,000 are eligible for the full amount.
- All other filers making less than $29,500 are eligible for the full credit.
- All other families exceeding the above income thresholds may still qualify but will see a reduced amount.
Click here to use this calculator from the Star Tribune to see your estimated tax credit.
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How do I receive the credit?
- You must FILE AN INDIVIDUAL EARNED INCOME TAX RETURN – even if you did not make any earned income during the tax year.
- Filing an income tax return is the only way to access these benefits for you and your family.
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How do I file a tax return?
- You can file using your social security number (SSN) or an individual taxpayer identification number (ITIN), a tax filing number for eligible individuals without an SSN.
- Based on your filing status (single or married filing jointly), your income, and your number of dependents, the Child Tax Credit will be applied first to any taxes you owe and then any surplus will be given to you as a tax refund.
Tax laws can be complicated. The Minnesota Department of Revenue offers free tax preparation for those who qualify. Learn more at Free Tax Preparation Sites | Minnesota Department of Revenue (state.mn.us)
If you don’t qualify for free preparation but are considering hiring a professional tax preparer to help file your tax return, the Minnesota Department of Revenue provides a helpful guide on finding one with the knowledge to prepare your returns correctly:
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What other tax benefits can my family take advantage of?
The Working Family Credit and the K-12 Education Tax Credit and Subtraction are additional benefits offered to Minnesota families.
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