During the pandemic, Congress temporarily expanded the federal Child Tax Credit, with experts noting it helped cut child poverty rates nearly in half. However, a permanent expansion failed to gain traction and states like Minnesota have moved forward with their own credit. (Adobe Stock)

Poverty-fighting groups in Minnesota are joining the wave of officials reminding low-income households to take advantage of the state’s Child Tax Credit, now in its second year, adding a new feature could provide additional flexibility.

The state adopted the credit in 2023 on the heels of Congress’ temporary expansion of the federal Child Tax Credit, which helped reduce poverty rates. State leaders are trying to produce similar results here, and last year, nearly 225,000 eligible families claimed the credit.

Angela Bellmont, outreach coordinator for the Children’s Defense Fund Minnesota, said this time, there is an option to receive advance payments.

“It really provides some predictable income in any area that they need, such as medical expenses or emergencies,” Bellmont explained.

A person choosing the option would receive their full 2024 refund with the credit and three monthly payments spread out later this year. The installments would make up 50% of the filer’s 2025 Child Tax Credit refund ahead of next year’s tax season. Bellmont stressed the advance payments are optional and noted using it could limit benefits from the Supplemental Nutrition Assistance Program.

Given the tax credit is still relatively new, Bellmont emphasized they are trying to make sure people know about it.

“This tax credit is available for all families with qualifying children, regardless if they bring in enough income to pay an income tax,” Bellmont outlined. “We want people to file taxes, even if they haven’t in the past.”

Households meeting eligibility requirements can receive a credit of up to $1,750 per child. If they are interested in the new advance payments option, the Department of Children, Youth and Families has an online tool to help calculate any impact on SNAP benefits. Minnesota also has more than 200 free tax prep sites around the state to help navigate the details.