Child Tax Credit
Beginning with tax year 2023, you may qualify for a Child Tax Credit of $1,750 per qualifying child, with no limit on the number of children claimed. This is a refundable credit, meaning you can receive a refund even if you do not owe tax.
The credit phases out if your income is over $29,500 ($35,000 for Married Filing Jointly).
Complete Schedule M1CWFC, Minnesota Child and Working Family Credits, to see if you qualify for this credit. This schedule will be available before the 2024 filing season.
You are not eligible if any of these apply:
- You were a full-year nonresident
- You have a 2- or 10-year IRS ban on claiming the federal Earned Income Tax Credit (EITC)
- You are the dependent or qualifying child of another person
- Your filing status is Married Filing Separately
Minnesota uses the same definition as the IRS for “qualifying child.” You must complete Schedule M1DQC, Dependents and Qualifying Children, to determine who is a qualifying child and qualifying older child. This schedule will be available before the 2024 filing season.
Part-year residents are eligible for the credit even if they move into or out of Minnesota during the year. You must adjust your credit based on your percentage of income taxable to Minnesota. To calculate your credit, complete Schedule M1NR, Nonresidents/Part-Year Residents, and the worksheet in the Schedule M1CWFC instructions.
Military members whose home of record is Minnesota are considered residents for tax purposes. You may claim the federal EITC and the Child Tax Credit if you meet the requirements. When calculating these credits, you may include nontaxable combat zone pay as earned income.