Ohio’s $1,000 Child Tax Credit in 2025: Raising children comes with significant financial responsibilities, and Ohio is stepping up to help families with young children. Governor Mike DeWine has proposed a $1,000 Child Tax Credit for the 2025 tax year, aiming to ease the financial burden on families and provide direct support for childcare, education, and everyday expenses. This Ohio Child Tax Credit (CTC) is expected to benefit thousands of households, ensuring that parents have the financial flexibility to provide for their children’s well-being. In this article, we’ll cover everything you need to know about the credit, including eligibility, income thresholds, how to apply, and how families can use the funds.
Ohio’s $1,000 Child Tax Credit in 2025
The Ohio $1,000 Child Tax Credit aims to support families with young children, helping them afford childcare, education, healthcare, and other essentials. If passed, it will provide much-needed financial relief to low- and middle-income households across the state. Although the proposal is still under review, it’s essential to stay informed and prepare your tax filings to maximize any benefits available to your family.
| Feature | Details |
|---|---|
| Credit Amount | Up to $1,000 per qualifying child |
| Eligibility Age | Children under 7 years old by the end of the tax year |
| Income Requirements | – Minimum earned income of $2,500 to qualify for a portion of the credit – Full credit available to individuals earning at least $22,500 and married couples earning at least $30,000 – Phases out for individuals earning over $69,000 and married couples over $94,000 |
| Residency Requirement | Child must have lived with the taxpayer for more than half of the tax year |
| Dependency Status | Child must be claimed as a dependent on the taxpayer’s return |
| Approved Usage | No specific restrictions; can be used for childcare, education, healthcare, or household expenses |
| Implementation Status | Proposed by Governor DeWine; pending approval by the Ohio legislature |
| Funding Source | Proposed increase in cigarette taxes from $1.60 to $3.10 per pack |
| Official Resource | Ohio Department of Taxation |
Understanding the Ohio Child Tax Credit
The Child Tax Credit (CTC) is a financial benefit designed to support families by reducing their tax burden or increasing their refund. The proposed Ohio-specific Child Tax Credit for 2025 will provide up to $1,000 per qualifying child under the age of seven.
Unlike the federal Child Tax Credit, which applies to children under 17, Ohio’s version targets families with younger children, acknowledging the higher costs associated with early childhood development, childcare, and medical expenses.
This credit is non-refundable, meaning it can reduce a taxpayer’s liability to zero but won’t provide a refund beyond what is owed in taxes.
Who Qualifies for the $1,000 Ohio Child Tax Credit?
To determine whether your family is eligible, consider the following requirements:
1. Age Requirement
- The child must be under seven years old by the end of the tax year.
- If your child turns seven on or after January 1, 2026, they will still be eligible for the credit for the 2025 tax year.
2. Income Limits
- Minimum Income: You must earn at least $2,500 to qualify for a portion of the credit.
- Full Credit Eligibility:
- Single filers: Earn at least $22,500
- Married filing jointly: Earn at least $30,000
- Phase-Out Threshold:
- Single filers: Credit reduces if income exceeds $69,000
- Married filing jointly: Credit reduces if income exceeds $94,000
- For every $1,000 earned beyond these limits, the credit amount is reduced by $50.
3. Residency Requirement
- The child must have lived with the taxpayer for more than half of the tax year.
- Temporary absences, such as vacations, school, or medical care, do not affect eligibility.
4. Dependency Requirement
- The child must be claimed as a dependent on the taxpayer’s tax return.
- The child cannot provide more than half of their own financial support during the tax year.
5. Citizenship Requirement
- The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
How Can Families Use the $1,000 Child Tax Credit?
The Ohio Child Tax Credit is flexible, allowing families to use the funds as needed. Common expenses include:
1. Childcare Costs
- Daycare, babysitters, or after-school programs.
2. Education Expenses
- School supplies, books, and tuition.
3. Medical and Healthcare Needs
- Doctor visits, vaccinations, prescriptions, and dental care.
4. Household Essentials
- Groceries, rent, utilities, or transportation.
Since there are no strict limitations, parents can decide how best to use the funds based on their family’s unique needs.
How to Claim the Ohio’s $1,000 Child Tax Credit in 2025?
1. File Your Ohio State Tax Return
The credit will be available when filing your Ohio state tax return for the 2025 tax year.
2. Include Your Child as a Dependent
Ensure that you claim your child under age seven as a dependent on your tax return.
3. Meet the Income Requirements
The tax system will automatically calculate the credit amount based on your reported income.
4. Submit Supporting Documentation (If Required)
In some cases, the Ohio Department of Taxation may request proof of residency, income, or other eligibility criteria.
Current Status: Is the Credit Approved?
As of March 2025, the Ohio Child Tax Credit is still a proposal. It was introduced by Governor Mike DeWine but must be approved by the Ohio legislature before becoming law.
The proposal is expected to be debated in upcoming budget discussions. If passed, it would take effect for the 2025 tax year, with families able to claim it when filing their taxes in early 2026.
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FAQs About Ohio’s $1,000 Child Tax Credit in 2025
1. When will the Ohio Child Tax Credit take effect?
If approved, the credit would apply to the 2025 tax year, meaning families can claim it when filing taxes in early 2026.
2. Can I claim this credit along with the Federal Child Tax Credit?
Yes. The Ohio Child Tax Credit is separate from the federal credit, meaning families can claim both if eligible.
3. What if I don’t owe any Ohio state taxes?
This is a non-refundable credit, meaning it can reduce your tax bill to zero but won’t give you a refund if you owe nothing.
4. How is the credit being funded?
Governor DeWine has proposed increasing cigarette taxes from $1.60 to $3.10 per pack to fund the program.
5. What should I do if the credit is not approved?
Monitor updates from the Ohio Department of Taxation and consider other tax credits available to families.
