Taxpayers who qualified for a Child Tax Credit in 2024 and expect to qualify again in 2025, may choose to receive advance payments on this year’s Schedule M1CWFC. They can receive up to 50% of the current year child tax credit in advance payments.
Taxpayers must file an original 2024 tax return by April 15, 2025, to choose advance payments. If they amend their return, impacting their child tax credit, we will stop advance payments. Taxpayers may choose to stop receiving advance payments through e-Services, contacting us at 651-296-3781 or 800-652-9094, or emailing our division with questions about this.
As a tax professional, it is important to help your clients decide if advance payments of the child tax credit are right for them. While the new Minimum Credit provides a safety net by addressing your clients’ concerns that advance payments may need to be repaid under certain circumstances, having a direct conversation about certain factors will help make a more informed decision.
These factors may impact advance payments:
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Age of qualifying children
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Minnesota residency changes from full-year to part-year
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Alternating parents claim children
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Divorce
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Significant increases to income
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Current Supplemental Nutrition Assistance Program (SNAP) payments
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