Maryland Extends Child Tax Credit to 2024, Benefitting Thousands
Maryland has taken a significant step to support families by extending its child tax credit program until 2024. The state is among several others that continue to provide this form of credit, even as the Biden administration’s version of the credit has come to an end. This move aims to alleviate financial burdens on eligible families and promote child well-being.
Under the program, Maryland offers a child tax credit of up to $500 per child each year. This recurring tax credit, which was signed into law earlier this year, seeks to provide long-term support to eligible families. To qualify for the $500 refundable tax credit, individuals must have a federally adjusted gross income of $15,000 or less. Eligibility is determined for families with children under the age of 6 or those who have a disability.
Previously, individuals earning $6,000 or less annually could receive a $500 tax credit specifically for their child with a disability. However, the newly enacted Family Prosperity Act of 2023 expanded the credit for a broader range of families.
Governor Wes Moore, a proponent of the child tax credit, has emphasized its significance in combating child poverty. He describes it as part of his all-out assault on child poverty, recognizing the positive impact it will have on many Maryland taxpayers. The state estimates that approximately 40,000 taxpayers will benefit from this initiative.
Maryland’s child tax credit program is designed to align with the federal child tax credit model. In 2021, the federal child tax credit was increased to $3,600 per child under 6 years old and up to $3,000 per child between the ages of 6 and 17 for eligible families. Although the federal child tax credit expired in 2021, states like New York and California have expanded their child tax credit offerings.
The extension of Maryland’s child tax credit program ensures ongoing support for families in need. By following the federal model and offering recurring tax credits, the state aims to make a positive impact on child poverty rates and improve overall family well-being.
For more information on tax credits provided to taxpayers in Maryland, visit the state’s official website.