Low-income parents with dependent children are eligible to receive up to $1,750 per child on their state tax return this year in Minnesota.
The state Child Tax Credit, now in its second year of existence, is available to families whose annual income is under a certain threshold. The credit is on top of the $5,000 most families in Minnesota can deduct on their state taxes every year for each dependent child.
The Minnesota Department of Revenue has estimated that the tax credit could reduce childhood poverty in the state by one-third. But an estimated 10 percent of people who were eligible for the state Child Tax Credit last year did not take it, according to Kate Gjerstad Howd, a senior strategist with Prepare + Prosper, which offers free tax consulting services to low-income Minnesotans.
This is likely because their income is so low they don’t have to file their state income taxes, Gjerstad Howd said. She urges people who fall into this category — individuals who make less than $14,575 or married couples who make less than $29,150 combined — to still file their state income taxes.
“Even if you’re not required to file, go file,” Gjerstad Howd said. “Because most likely, you will receive these tax credits.”
For the first time starting this year, families can receive payments this year for the estimated Child Tax Credit they would get in 2026.
Below is a guide on how to claim the credit.
Am I eligible for the Minnesota Child Tax credit?
A single parent making $31,090 or less who has one dependent child is eligible for the full credit.
A married couple making a combined $36,880 or less who has one dependent child is also qualified for the credit.
The income threshold for accessing the credit is higher the more children taxpayers have. The state doesn’t limit the number of children.
How much money will I receive?
Those who are eligible for the credit can receive up to $1,750 per child.
Taxpayers whose incomes are close to the ceiling of the income requirements receive less money depending on their income levels.
What is the age limit for children covered by the tax credit?
Any dependent child who is 17 or under is eligible for the credit.
Dependents between 18 and 24 may be eligible for a separate state tax credit for older children.
How do I claim the credit?
On your state income tax form, fill out the Schedule M1 DQC Dependents and Qualifying Children form, which asks for each child’s name, birthdate and social security number, among other information.
Then, fill out the Schedule M1CWFC, Minnesota Child and Working Family Credits form. This form tells you if you are eligible for the credit.
How do I receive advance payments for my tax credit?
Residents who think they are eligible for the tax credit in 2026 can receive some of it in advance payments this year. The early payments are being offered for the first time this year.
To receive the early payments, fill out section two on the Schedule M1CWFC, Minnesota Child and Working Family Credits form. Make sure you also check the box on the first page electing to receive advance payments.
Those who qualify will receive half of next year’s estimated tax credit in three advance payments this August, October and December.
The advance payments could help many families, Gjerstad Howd said, although people who are expecting their income to grow next year will want to check to see if they will qualify in 2026.
Recipients of the federal Supplemental Nutrition Assistance Program (SNAP) who want the advance payments may also want to tread carefully, Gjerstad Howd said. That’s because SNAP will view the advance payments as income, which could reduce a person’s SNAP benefits.
Can I get help filing my taxes?
Low-income tax filers can receive free tax preparation services from Volunteer Tax Assistance (VITA) sites. Find those locations here: https://experience.arcgis.com/experience/9aa6ff3317234c9698a6287d50386bb4/page/Page.
When are my taxes due?
The deadline for filing your state and federal taxes is April 15. People who miss the deadline should still file their taxes late, Gjerstad Howd said.
For more information, visit the Minnesota Department of Revenue here, and the federal Internal Revenue Service here.
