Wednesday, April 9, 2025

Money Matters - Child-Related Tax Benefits

 For some parents, tax refunds aren’t just a bonus—they’re a financial lifeline, helping cover essentials like rent, car repairs, and medical bills. As the deadline approaches, a new data study reveals how child-related tax benefits vary across America.

For each state, researchers analyzed local tax return data from the IRS to find 1) the amount of child-related tax credits per return and 2) the percentage of returns claiming these credits.

Offer the Most Tax Relief for Parents


  1. Utah - $2,744 child-related tax credits per return

  2. Idaho - $2,679

  3. South Dakota - $2,650

  4. Texas - $2,645

  5. Alaska - $2,634

Claim the Most Child-Related Tax Credits


  1. Mississippi - 19.24% of returns claiming child-related credits

  2. Louisiana - 17.38%

  3. Arkansas - 16.03%

  4. Alabama - 15.36%

  5. Texas - 15.25%

Offer the Least Tax Relief for Parents


  1. District of Columbia - $2,327

  2. West Virginia - $2,345

  3. Massachusetts - $2,350

  4. Rhode Island - $2,367

  5. Vermont - $2,376

Claim the Fewest Child-Related Tax Credits

 

  1. New Hampshire - 5.32%

  2. Massachusetts - 6.33%

  3. Vermont - 6.47%

  4. Maine - 7.40%

  5. Colorado - 7.64%

Check out the link to learn more about the study

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