The New Mexico Taxation and Revenue Department has made the following announcement: for the first time, taxpayers in the state are qualified to receive a child tax credit of up to $600 per kid. Tax filing season is upon us, and New Mexican families may now take advantage of a new child tax credit that is worth up to $600 per eligible child (up from $25 this year). The value of the credit decreases with increasing income.
A news release from the Taxation and Revenue Department of New Mexico states that 292,000 households across the state are expected to receive an estimated $180 million from the $600 Child Tax Credit by 2024. As Governor Michelle Lujan Grisham said, this is another important step to improve the lot of New Mexico families since child tax credits lower childhood poverty. Check this page as I will be updating you on the $600 Child Tax Credit 2024 Eligibility.
$600 Child Tax Credit 2024
You have till the filing of your 2023 tax return to claim the child tax credit if you are a New Mexico taxpayer 2024. $600 Child Tax Credit Starting with this filing season, qualifying parents can receive a $600 New Mexico child tax credit. April 15th is the last day to file your taxes. Tax season is already well underway and nearly over, therefore any changes you need to make to your file must be done quickly. For those who put off turning in their papers until the very last minute, it started on January 29 and ends on April 15.
Most of you have finished the most of your calculations by now, especially if we have children, when every penny counts in the return. Though some of you may be considering the New Mexico Child Tax Credit 2024 Amount, others may not be aware that our state may provide additional tax advantages.
$600 Child Tax Credit 2024 Eligibility
Therefore, one has to fulfill the following income requirements in order to be qualified for the $600 Child Tax Credit:
- For those whose adjusted gross income (AGI) is between $0 and $25,000, New Mexico residents will be qualified for the $600 per kid.
- Your entire income less any permissible deductions or adjustments to income is your adjusted gross income, or AGI.
- Under the $25,000–50,000 AGI band, residents are qualified for $400 per kid.
- You can thus still get your $600 back even if your AGI is less than zero.
New Mexico Child Tax Credit 2024 Amount
The New Mexico Taxation and Revenue Department projects that the additional child tax credit will generate $180 million. It is also anticipated to benefit about 300,000 homes in the state. The officials claim that this will be very beneficial to many families. The New Mexico CTC 2024 Amount is claimable as indicated in the table below:
| AGI | Amount of credit per qualifying child |
|---|---|
| $0-$25,000 | $600 |
| $25,000-$50,000 | USD 400 |
| $50,000-$75,000 | $200 |
| $75,000-$100,000 | $100 |
| $100,000-$200,000 | $75 |
| $200,000-$350,000 | USD 50 |
| $350,000+ | $25 |
How to claim New Mexico child tax credit 2024
For parents and guardians in New Mexico, some additional tax relief is coming in 2024 thanks to an increased child tax credit. The state credit is worth up to $400 per qualifying child, up from just $25 previously. Here’s how to ensure you receive the full benefit when filing your 2024 taxes.
Who Qualifies?
The enhanced $400 New Mexico child tax credit can be claimed for each dependent child under age 17 at the end of the 2024 tax year. The child must be a son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them. They must also have a valid social security number.
Income Limits
There are income thresholds to be aware of in order to receive the maximum state credit amount. The full $400 per child can only be claimed by single filers with a modified gross income under $25,000 and married couples filing jointly who earn less than $50,000.
The credit amount begins phasing out by $100 for every $5,000 over those income limits, until fully phasing out at $40,000 for single filers and $80,000 for joint filers.
Claiming on Your Return
When preparing your 2024 New Mexico tax return, you’ll claim the child tax credit on Schedule PIT-CR, the supplemental schedule for tax credits. This is where you’ll list your qualifying dependents and calculate the total credit amount based on your income.
The state credit is non-refundable, meaning it can only be used to offset the tax you owe New Mexico. Any remaining credit amount beyond what you owe cannot be refunded to you.
However, any leftover credit can be carried forward for up to five years to reduce future state tax bills. So save your records and be sure to claim the credit if it doesn’t fully offset your 2024 liability.
Other Documents Needed
In addition to Schedule PIT-CR, you’ll need to submit additional documentation to claim the New Mexico child tax credit. This includes proof of each child’s age and relationship to you, such as birth certificates or legal guardianship paperwork.
$600 Child Tax Credit 2024 Payment Date
The recently reinstated Child Tax Credit is providing families with a $600 cash payment for each qualifying child in 2024. As households start budgeting for the new year, many are wondering when exactly they’ll receive this extra money.
The good news is the payments will start going out relatively early in 2024. The IRS plans to issue the first round of $600 Child Tax Credit payments during the week of July 15th, 2024.
