Your $683 Child Tax Credit Check May Look Like This

Your $683 Child Tax Credit Check May Look Like This. In the wake of the conclusion of the federal child tax credit initiated by the Biden administration, several states, including New Mexico, have taken proactive measures to introduce or enhance their own child tax credit programs. This article explores the details of New Mexico’s initiative, highlighting Governor Michelle Lujan Grisham’s recent legislation that significantly amplifies support for families in the lower income brackets.

The Evolution of Child Tax Credits in New Mexico

Nonrefundable Credit of Up to $683 per Child

New Mexico’s child tax credit introduces a nonrefundable credit of up to $683 per child, slated to be available until 2032. This extension aims to provide sustained financial relief to families, particularly those facing economic challenges.

Governor Grisham  Legislative Boost

Governor Michelle Lujan Grisham, a key advocate for family welfare, signed legislation enhancing the child tax credit. Commencing from the 2023 tax year, families in the three lowest income brackets will witness a substantial increase in credits—$600, $400, and $200—significantly surpassing the prior amounts of $175, $150, and $125.

Impact on New Mexico Families

In an April press statement, Governor Grisham emphasized the broader impact of this expansion. The goal is to support over 200,000 families in New Mexico, continuing the state’s effective campaign to lower child poverty rates. Notably, there has been a one percent decline from 2019 to 2021. The governor’s strategy includes reducing gross receipts tax for healthcare practitioners, aiming to decrease patient costs and retain more medical professionals in the state. Furthermore, enhanced support for the film and television industry is expected to attract private investment and create additional employment opportunities.

Nationwide Trends States Taking the Lead

While the federal child tax credit concluded in 2022, the landscape across the United States is evolving. Five states—Oregon, Colorado, Minnesota, New Jersey, and Vermont—have stepped forward with new or enhanced tax credits. These states offer refundable credits of $1,000 or more for each eligible child. In total, fourteen states are now providing some form of child tax credits to support families, demonstrating a collective effort to fill the void left by the federal program.

Conclusion

As states actively respond to the conclusion of the federal child tax credit, New Mexico stands out with its comprehensive approach to enhance support for families. Governor Grisham’s commitment to reducing child poverty rates and promoting economic stability sets a precedent for other states to follow suit. Stay informed as the landscape of child tax credits continues to evolve, ensuring that your family maximizes the available financial support.