Stimulus Update: Another State Offers Assistance to Families With Children

The number of states offering tax breaks has grown.

Connecticut is the latest U.S. state to announce a child tax rebate. As part of its 2023 fiscal year budget, the state included $663 million in tax cuts. These cuts include a $250 Child Care Tax rebate.

Tax credit details

The rebate is designed to help low- to middle-income families, though eligible higher-income families may receive a reduced rebate.

Income limits are as follows:

Eligible families can collect rebates for up to three children under the age of 18, for a maximum rebate of $750. Those with higher incomes may be eligible for a reduced amount.

Open application period

According to the office of Governor Ned Lamont, families interested in receiving the rebate are required to apply to the Connecticut Department of Revenue Services. Applications can be found here, on the Department of Revenue website. The application period opened on June 1 and will close on July 31, 2022.

"We created this state tax rebate to give Connecticut families with children some additional relief. The application period is now open, and all applications must be submitted by July 31. I strongly urge all families who claimed at least one dependent child on their 2021 federal income tax return to submit an application as soon as possible so that this rebate can be sent to you with no delays," said Gov. Lamont.

Qualified families will receive funds beginning in late August.

Add Connecticut to the list

Connecticut is the 12th state to announce it will share its budget surplus with families. Here's a brief rundown of the others:

• Alabama: The average family with two children is expected to save $200 at tax time.
• California: Families with an income under $25,000 can expect to receive $1,000 through the "Young Child Tax Credit."
• Colorado: Eligible families with children under the age of 6 can claim 5% to 30% of the federal Child Tax Credit for each qualifying child.
• Idaho: Each qualifying child in Idaho will mean an extra $205 in their parent's bank account at tax time.
• New Mexico: Lower-income families in New Mexico are eligible for a tax credit of $75 to $175 per child. They're also eligible for a credit equaling 40% of child and dependent care costs.
• New York: Eligible New Yorkers will receive $100 per qualifying child or 33% of the federal Child Tax Credit and federal additional Child Tax Credit, whichever is greater.
• Maine: Families are eligible for a $300 tax credit for each qualifying child and dependent.
• Maryland: In addition to a child tax credit of $500 to income-eligible parents of a disabled child under the age of 17, Maryland is providing another tax credit to income-eligible families -- this one equaling 35% of their federal Child Tax Credit.
• Massachusetts: Families caring for dependents under the age of 12, adults 65 or older, or dependents with a disability will receive a tax credit of $180 for one dependent and $360 for two or more.
• Oklahoma: Income-eligible families in Oklahoma will receive a tax credit of up to 35% of the amount they spend on childcare for children under 13 or caring for a dependent who is unable to care for themselves.
• Vermont: Eligible families with children under the age of 5 will receive a refundable tax credit of $1,000.

While these credits may not make anyone wealthy, every dollar counts when it comes to raising children and caring for those who can't care for themselves.