For the year 2024, the State of Colorado has announced an allocation of a Child Tax Credit (CTC) amounting to $1,200 for each qualifying child. This sum is amongst the most substantial in refundable tax credits across the nation. The 2021 enhancement of the CTC was a lifeline for numerous households, enabling them to circumvent the threat of childhood hunger following the economic downturn brought on by the pandemic.
Although this tax relief has concluded, economic hardships persist. Rising prices have squeezed the finances of numerous families. To mitigate these economic strains, various states have introduced their own fiscal measures. Notably, Colorado has adopted a policy providing a maximum of $1,200 per child in the coming year, positioning it as one of the top state-level CTCs in the U.S.
Colorado’s Progressive Child Tax Credit Program
Colorado’s Governor, Jared Polis, enacted a considerable augmentation of the CTC program this June, ranking it as the nation’s second most generous. Despite the program being in its infancy, having been initiated only in 2021, it promises to deliver a level of financial support by 2024 that few states can match. Beneficiaries of the program will receive the full $1,200 in cash as the credit is refundable.
To qualify for this credit, Colorado’s Department of Revenue stipulates that individual residents must earn no more than $75,000, or $85,000 for married couples filing together.
Since the program is newly established, specifics regarding eligibility criteria for children have yet to be fully detailed. It is anticipated that eligible children will likely be those under the age of 6 at the close of the tax year in question. The maximum number of children that can be claimed as dependents remains unspecified.
Kathy White, the Colorado Fiscal Institute’s executive director, stated, “The cornerstone of our economy is the workforce, and it’s essential to equip them with the necessary tools and resources for success. A solid cash policy is instrumental in maintaining economic vitality and fostering family prosperity.”
Another significant advantage of the program is its inclusivity of taxpayers irrespective of their immigration status. The Colorado Department of Revenue clarifies that individuals with at least one eligible child or dependent can claim the Federal Child Tax Credit, with no consideration of their immigration status. What is required, however, is that both you and, if applicable, your spouse must possess a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) by the filing deadline to qualify for the credit.
The recent expansion in June not only increases the payment amount but also extends coverage to include an additional 12,000 children who were previously ineligible due to their parents’ low income. This enhancement means the program will now reach over 195,000 children in Colorado, as reported by the Jain Family Institute.