Child tax credit 2023: Minnesota residents could receive up to $2,100

Minnesota residents who file their 2023 tax returns could qualify for a rebate under the Child and Dependent Care Credit program.

The Child and Dependent Care Credit seeks to “offset certain care expenses” for qualifying recipients. The credit is refundable, so a household could receive a refund even if they do not owe income tax, according to the Minnesota Department of Revenue.

REPUBLICAN DEBATE: CAN GOP DEBATERS PUT PRESSURE ON TRUMP TO SHOW UP?

The credit begins to phase out if a household’s federal adjusted gross income is over $55,300.

To qualify, a Minnesota resident (or their spouse if filing a joint return) must earn income. They must also have documentation showing the expenses paid for either someone to care for a child or a qualifying person or someone for household services.

Additional factors involved in receiving the Child and Dependent Care Credit: A filer’s status is not “married filing separately”; the qualifying person lived with the filer for more than half of the year; and the 2022 federal AGI is less than $67,300 with one qualifying person or $79,300 with two or more qualifying persons.

A qualifying person or dependent is defined by the Internal Revenue Service as either a dependent under the age of 13, a spouse who is physically or mentally unable to take care of themselves, or a person who wasn’t physically or mentally able to take care of themselves. More specific details about qualifying persons can be found in the IRS Publication 503.

If a filer has one qualifying dependent and the federal AGI is less than $55,300, a filer can receive a maximum credit of $1,050. Those with two qualifying dependents and a federal AGI less than $55,300 can earn a maximum credit of $2,100.

A filer with one qualifying dependent and a federal AGI between $55,300 and $67,300 can receive a maximum credit of $600 minus 5% of federal AGI exceeding $55,300. Filers with one qualifying dependent and a federal AGI of over $67,300 will not qualify for this Child and Dependent Care Credit.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Expenses may qualify if a taxpayer paid for the care of a qualifying person so they or their spouse could work or look for work, or household services so the filer or their spouse could work or look for work. Costs such as food, clothing, education, and entertainment are not eligible as qualifying expenses, and neither are payments made for the filer by another person or a government agency.

A spokesperson for the Minnesota Department of Revenue told the Washington Examiner that the credits will be claimed when eligible taxpayers file their 2023 income tax returns. The deadline to file those returns is on April 15, 2024.