Gov. Walz Touts New Child Tax Credit
Minnesota Gov. Tim Walz touted the state’s new child tax credit ahead of tax season this Monday.
An estimated one-in-ten households will be eligible for the credit.
Walz hosted a press conference at Prepare + Prosper, a free tax preparation site in St. Paul to urge families to take advantage of the permanent tax break.
“We have the best child tax credit in the country,” he said. “But here’s the thing: you have to file your taxes to get it.”
The tax break gives families up to $1,750 per child. According to Walz, it’s already popular with families that are filing their taxes early.
In one week, “48,000 claimed the child tax credit — 25 percent of all returns that were in during the week,” Walz said. “For $61 million and an average credit of $1,253, that is music to our ears.”
The DFL-dominated legislature approved the tax credit during the last legislative session
The credit is dependent on income, so families making more money will get less money back. But, officials say most families with children are eligible for some kind of tax break through the program.
“It phases out relatively slowly, and if you have a family with four kids, that phase-out doesn’t occur until about $95,000 in income,” said Paul Marquart, Commissioner of the Minnesota Department of Revenue.
Families aren’t limited in how they can spend their child tax credit dollars.
Walz said if enough people claim the tax break, it could cut childhood poverty rates by a third. It could also help local economies, he said.
“This money’s going to families,” Walz said. “It’s going to buy shoes in your local store. It’s going to buy tires in your local tire store. It’s going to buy a water heater out at Lowes or wherever you’re going.”
Meanwhile, the Minnesota Department of Revenue has a list of free tax preparation sites that may be able to help you claim your child tax credit. The list is available here.