Child Tax Credit Payments to be Accelerated Beginning Next Year

(KNSI) – Minnesota families will get their child tax credit earlier under a new plan unveiled by Governor Tim Walz Wednesday.

The state will become the first in the country to allow payments to be accelerated. A portion of the credit would be sent back to families in the second half of 2025 across three installments, with the remainder paid out in early 2026.

Previously, filers had to wait until the following April for the financial pick-me-up. About 223,000 Minnesota families took advantage of the assistance for the 2023 tax year, which averaged just under $1,250.

Walz points out the credit is meant to keep children out of poverty and a consistent payment schedule will help improve financial freedom. Revenue Commissioner Paul Marquart says, “Giving them the option to get a portion of next year’s credit in three installments will allow families to budget throughout the year instead of getting their refund in one lump sum when they file their taxes.”

Minnesota’s Child Tax Credit program allows any family to get a benefit of up to $1,750 per child, regardless of whether they owe taxes. They must file a return to qualify, though.

___