Governor Mike DeWine has proposed a proposal that might provide significant help to young Ohio families who could need 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 boost the tobacco tax, which would provide parents with up to $1,000 for each child under the age of six. The child tax credit is a reward for families with qualified children. This credit reduces the tax burden on households and may result in a higher 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 varies on income, so here’s a quick description 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 news conference, Governor DeWine stated that the child tax credit he is proposing is completely funded due to Ohio’s higher cigarette taxes. So, if this happens, individuals who smoke may be able to help those who do not.
In terms of taxes, there would be a $1.50 rise each package, nearly doubling the current rate of $1.60. Furthermore, DeWine proposed increasing wholesale taxes on tobacco products, so expect some intriguing adjustments.
But that is not all. In addition to the tax credit, DeWine is trying to improve educational options and extend its child care voucher program. It’s a combination that might significantly benefit hundreds of thousands of eligible homes.
It is worth noting that the governor attempted to incorporate this child credit in a prior budget, but it was not successful. Currently, parents can receive a federal tax credit of up to $2,000 per qualified child, but this credit is slated to expire at the end of the year.
So, if you have young children, keep an eye on these changes. You might take advantage of further assistance that would be extremely beneficial to families in the state.
