Governor Mike DeWine has released a proposal that could be a big relief for young Ohio families who could use a little tax relief. In his recent presentation on the state budget plan, DeWine suggested creating a state tax credit for families with children.
The idea is to increase the cigarette tax, and that would give parents up to $1,000 for each child under 6 years old. The child tax credit is a benefit provided to families with qualifying children. This credit helps reduce the tax burden on families and can result in a larger refund when filing taxes.
Child Tax Credit in Ohio: Who Qualifies and How to Apply
Now, there are details that are crucial to knowing if your family qualifies. The amount of the tax credit depends on income, so here is a quick summary of who could receive this benefit:
- 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 said the child tax credit he is proposing to create is fully funded, thanks to increased cigarette taxes in the state of Ohio. So, if this happens, those who smoke could be helping those who don’t.
Speaking of the tax, it would be an increase of $1.50 per package, which almost doubles what is already set at $1.60. Additionally, DeWine suggested expanding wholesale taxes on tobacco products, so expect some interesting changes.
But that’s not all. In addition to the tax credit, DeWine is also looking at improving educational opportunities as well as expanding its child care voucher program. It’s a combo that could make a big difference in hundreds of thousands of households that would be considered eligible.
It is appealing to note that the governor had already tried to include this child credit in a previous budget, but it did not come to fruition. Currently, parents can access a federal tax credit that offers up to $2,000 per eligible child, but this credit is set to expire at the end of this year.
So, if you have small children, don’t forget to keep an eye on these changes. You could take advantage of extra help that would be very useful for families in the state.
