Since the extended national child tax credit expires in 2022, Oregon has implemented a new or enhanced statewide child tax credit (CTC), joining at least 8 other states in doing so. The Oregon Kid’s Credit, a recently introduced child tax credit in Oregon, is fully refundable and has a maximum value of $1,000. It follows that qualified taxpayers will be able to claim this credit returned as a form of tax refund.
All About Oregon Child Tax Credit
According to Sen. Wlnsvey Campos, the Oregon Kids’ Credit seeks to alleviate economic gaps and guarantee that all kids in Oregon have a solid foundation for life by offering help during a child’s crucial formative years. According to Feeding America research from 2021, 106,470 kids in Oregon are estimated to have food insecurity. That is almost twice as many kids as the new law is expected to help. The Oregon Center for Public Policy estimates that the new credit will help close to 55,000 youngsters. However, some kids won’t be eligible even if their families are struggling financially.
Oregon Child Tax Credit Advanced Quarterly Payments
The benefit is available to qualifying households filing taxes in 2024; it is applicable for the fiscal year 2023. Furthermore, it’s uncertain if qualifying families would ever get Oregon child tax credit advanced quarterly payments. This is so that the advance payment provision won’t take effect until it’s established that the payments won’t be deducted from income which could prevent families from being eligible for government assistance. The bill stipulates that taxpayers would have the option to refuse advance payments. Additionally, they will be able to update any information that would have an impact on their eligibility and payment amount (such as an increase in earnings or the delivery of a kid).
Eligibility For Oregon Child Tax Credit
The age restriction is one of the causes why low-income families might not be eligible for the new tax credit. The credit is only available to children under the age of five. This means that irrespective of their income level, families in Oregon who solely have older children are fully ineligible for the state child tax rebate. The U.S. child tax credit, which is offered to qualified households who have kids up to age 17, has a significantly less stringent age restriction. However, some states have also implemented similar more stringent age restrictions. For instance, children four years of age and older could only claim the state’s child tax credit before the implementation of New York’s enlarged child tax credit. Additionally, only children under the age of six are eligible for California’s Young Child Tax Credit.
Amount Of Oregon Child Tax Credit Depends On The Families Income
The income threshold is another barrier to eligibility that may prevent some families from taking advantage of Oregon’s new child tax credit. The $1,000 full credit amount is only available to families with adjusted gross incomes (AGI) of $25,000 or less. Families earning over $25,000 in AGI might expect a smaller credit. You cannot get the credit at all if your family makes more than $30,000. In 2023, a family of four who meet the federal poverty line will earn $30,000. With that in mind, some families may not qualify for the whole $1,000 credit if they are below the poverty line set by the federal government. Not only that, but the Oregon child tax credit income limit is half of the $60,000 Oregon SNAP eligibility threshold for households with four members.