Advanced payment option for child tax credit gives families flexibility, officials say
This time of year, filing taxes can be tough. But a new program could actually save families money.
Friday morning, Lt. Gov. Peggy Flanagan highlighted the child tax credit advanced payment option during a press conference in St. Paul.
"Since we've had children we have seen an increase in our refund during tax season," said Nick Weber.
Weber is a proud parent of two kids. One is 2-and-a-half and the other is just starting to sleep through the night. He said his family benefits from child tax credits.
"Having an extra $1,200 or $2,400 depending on what we qualify for would be great for things like bills. We've got a roofing project that we are working on," said Weber.
But now, families like Weber's could actually receive advanced payments on the child tax credit, if and when they qualify.
It's a new option that Flanagan touted as the first of its kind in the nation. She delivered that message Friday morning at Prepare and Prosper, an organization that provides free tax services for those in need.
"This is the program that alone is expected to cut child poverty by one-third in our state," said Flanagan.
She said more than 220,000 Minnesotans claimed the credit in 2024 and received on average a little more than $1,200 in return. Department of Revenue Commissioner Paul Marquart says the new advanced payment option would take it a step further for families, simply by checking a box when they file.
"They can check a box and elect to receive up to 50% of that child tax credit for the next year in equal payments in August, October and December," said Marquart.
The goal is to put money in Minnesotans' hands sooner than later. During a time when food prices and other expenses have been high.
"What that really allows is to give families flexibility, and to meet those payments to where their financial situations are," said Marquart.
The Department of Revenue said so far this year, 100,000 Minnesota families have claimed the child tax credit.