How State Child Tax Credits Work (And When You Get Them)

What state child tax credits are and how they differ from the federal credit

A state child tax credit is money your state returns to you on your state income tax return — separate from the federal credit you may already know about. Not every state offers one, and the ones that do work differently from each other: some give you a percentage of the federal credit, some give a flat amount per child, and some phase out based on your income. Unlike the federal credit, which you claim on your federal return, you claim a state credit on your state return, and the money goes to your state tax refund (or reduces what you owe the state).

The federal credit and state credits are not connected — you do not have to claim one to claim the other. You can claim the federal credit, the state credit, both, or neither, depending on where you live and what your income is. Some states designed their credits to work alongside the federal one; others created them as a separate benefit. A few states have no state credit at all.

Key Takeaways

• Only 21 states currently offer a state child tax credit, and each state's rules about income limits, credit amount, and refundability are different.
• You claim a state credit on your state tax return, not your federal return, and the money appears in your state refund or reduces your state tax bill.
• Some state credits are refundable (you get money back even if you owe no state tax), while others are non-refundable (they can only reduce what you owe).
• Your state's Department of Revenue website lists whether your state has a credit and what the current income limits and amounts are.
• If you move to a different state during the tax year, you may be able to claim a credit in both states, but the rules depend on which states you lived in and for how long.

Which states have child tax credits and what they pay

As of 2024, these states offer a child tax credit: Colorado, Connecticut, Delaware, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Mississippi, Missouri, Montana, Nebraska, New Mexico, New York, North Carolina, Oklahoma, Oregon, Rhode Island, and Vermont. The amount varies widely — some states credit $100 to $200 per child, while others credit $500 or more. Income limits also differ: some states phase out the credit at $30,000 in household income, while others do not phase it out until $100,000 or higher.

Because these rules change year to year and sometimes mid-year, the fastest way to find out what your state offers is to search "[your state] child tax credit" plus "Department of Revenue" or "tax forms." The state's official tax website will show you the current year's credit amount, income limits, and whether the credit is refundable. Do not rely on last year's information — a state may have increased the credit, changed the income limit, or made it refundable when it was not before.

Refundable versus non-refundable credits

A refundable credit means you get money back even if you owe the state no tax. If the credit is larger than what you owe, the state sends you the difference. A non-refundable credit can only reduce what you owe — if the credit is larger than your tax bill, you lose the extra amount.

For example: if you owe the state $300 in tax and you have a $500 refundable credit, you get a $200 refund. If the credit is non-refundable, you owe $0 and you do not get the extra $200. Some states made their credits refundable specifically to help lower-income families who owe little or no state tax. Others kept them non-refundable. Check your state's rules to know which applies to you.

Income limits and how they affect your credit

Most state credits phase out — meaning the credit gets smaller as your income rises — and some disappear entirely once you reach a certain income. The income threshold varies by state. Colorado's credit phases out starting at $30,000 for single filers; Maryland's does not phase out until $150,000. Some states use federal adjusted gross income (AGI) to calculate the phase-out, while others use state taxable income, which can be slightly different.

If your income is near the phase-out point, you may want to calculate whether you will receive the full credit, a partial credit, or no credit at all. Your state's tax forms or website usually include a worksheet to do this. If you are unsure, you can also contact your state's Department of Revenue or use a tax software that handles state credits — most major programs now include state credits automatically.

How to claim a state child tax credit on your return

You claim a state credit on your state income tax return, not your federal return. If you file your state return by paper, look for a line or schedule labeled "child tax credit" or "dependent credit" — the exact name depends on your state. If you file electronically using tax software, the software will ask you about dependents and automatically calculate any state credits you are may have access to to.

To claim the credit, you will need the same information you use for the federal credit: the child's full name, date of birth, and Social Security number or Individual Taxpayer Identification Number (ITIN). You will also need to verify that the child lived with you for more than half the year and that you paid more than half their living expenses. If you meet these requirements for the federal credit, you almost certainly meet them for the state credit too.

File your state return the same way you file your federal return — by mail or electronically. If you file electronically, your state return usually processes faster, and you will see your refund sooner. Most states allow you to check the status of your return on their Department of Revenue website using your Social Security number and refund amount.

What happens if you move to a different state during the tax year

If you lived in more than one state during the tax year, you may owe tax to both states, and you may be able to claim a credit in each one. However, the rules are complex and depend on which states you lived in, how long you lived in each, and whether you were a resident or non-resident for tax purposes.

Most states require you to have lived there for the entire tax year to claim a full credit. If you moved partway through the year, one state may allow you to claim a partial credit based on the number of months you lived there. Some states do not allow you to claim a credit at all if you were not a resident for the full year. Contact both states' Departments of Revenue to find out what you can claim — this is one situation where a tax professional can save you time and money.

Frequently Asked Questions

Can I claim a state child tax credit if I claim the federal credit?

Yes. The state and federal credits are separate — claiming one does not affect whether you can claim the other. You claim the federal credit on your federal return and the state credit on your state return. Both can appear on the same tax year.

What if my state does not have a child tax credit?

If your state is not on the list of 21 states that offer a credit, you cannot claim a state credit. You can still claim the federal credit on your federal return. Some states without a credit offer other tax breaks for families, such as a dependent exemption or a credit for child care expenses — check your state's Department of Revenue website to see what is available.

Do I have to claim the state credit, or is it optional?

It is optional. If you are may have access to to a credit, you can choose to claim it or not. However, there is no reason not to claim it — it either reduces what you owe or increases your refund. If you use tax software, the software will calculate it for you automatically.

What if I have a child with an ITIN instead of a Social Security number?

Some states allow you to claim a credit for a child with an ITIN; others do not. Check your state's rules on its Department of Revenue website. If your state does allow it, you will claim the credit the same way you would with a Social Security number.

When do I get the money from a state child tax credit?

If you file electronically and the credit increases your refund, you typically receive the money within two to three weeks. If you file by paper, it takes longer — usually four to six weeks. You can check the status of your state refund on your state's Department of Revenue website.