Governor Mike DeWine has released a proposal that could provide significant relief to young Ohio families who could use some tax relief. DeWine proposed a state tax credit for families with children during his recent presentation on the state budget.
The plan is to increase the cigarette tax, which would provide parents with up to $1,000 for each child under the age of six. The child tax credit is a benefit for families with qualifying children. This credit reduces the tax burden on families and may result in a larger refund when filing taxes.
Child Tax Credit in Ohio: Who Qualifies and How to Apply
Now, there are some details that are critical to determining whether your family qualifies. The amount of the tax credit depends on income, so here’s a quick summary of who might benefit from it:
- You must have at least one child 6 years old or younger.
- If you are part of a married couple filing taxes together, your annual income cannot exceed $94,000.
- For married couples filing separately, the cap is $56,500.
- Single parents must keep their annual income below $69,000.
- Finally, applicants must earn at least $22,500 a year.
During a press conference, Governor DeWine stated that the child tax credit he is proposing is fully funded due to Ohio’s increased cigarette taxes. So, if this happens, those who smoke may be able to help those who do not.
In terms of taxes, there would be a $1.50 increase per package, nearly doubling the current rate of $1.60. Furthermore, DeWine proposed increasing wholesale taxes on tobacco products, so expect some interesting changes.
But that is not all. In addition to the tax credit, DeWine is looking to improve educational opportunities and expand its child care voucher program. It’s a combination that could significantly benefit hundreds of thousands of eligible households.
It is worth noting that the governor attempted to include this child credit in a previous budget, but it was not successful. Currently, parents can receive a federal tax credit of up to $2,000 per eligible child, but this credit is set to expire at the end of the year.
So, if you have young children, keep an eye on these changes. You could take advantage of additional assistance that would be extremely beneficial to families in the state.
