Child Tax Credits Could Be Taxed By State

Starting at the end of this week, the federal government will be sending out $400 checks to taxpayers for each child claimed on last year’s taxes. But, some of it could go to the state. The money is an advanced payment of the increased child tax credit Congress passed this year. And, Stan Farmer with the State Revenue Department says that will mean less federal credit on Missouri tax returns. Farmer says the amount the state gets of the checks could be up to six percent, or about $24 for each child. Two years ago, when the federal government gave out rebate checks, the Legislature had to exempt that money from state tax. But, Farmer says he’s not hearing any of that talk this year. Farmer says there’s nothing special you’ll have to do to claim the money on your state tax return, it will just be a lower credit.