Tax professionals

Sometimes taxpayers worry they will have to return advance payments of their Child Tax Credit if their financial situation changes. Starting with tax year 2025, the Minnesota Department of Revenue is implementing a Minimum Credit to alleviate having to pay back some or all the advance payments. The Minimum Credit will help if there is an increase in income, but it will not prevent your client from having to pay back some or all of the advance payments if they have fewer qualifying children. 

Taxpayers are eligible for the Minimum Credit, beginning in tax year 2025, if:  


* They received advance payments of the child tax credit
* The Child Tax Credit and Working Family Credit combined is greater than $0.  
* The Child Tax Credit is lower than the Minimum Credit 

The Minimum Credit is 50% of the Child Tax Credit received in the prior taxable year. If there are fewer qualifying children on the tax return than the year before, the Minimum Credit is adjusted using the lesser number of children.   

We compare the current year combined Child and Working Family Credit amount to their Minimum Credit amount. If the amount of the Minimum Credit exceeds the eligible combined credits, then they will receive the Minimum Credit.  

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