01 February 2024 | Tax and Budget Economic Security

A Universal State Child Tax Credit Would Cost around $145 Million Annually

February 1, 2024
Contact: Jessica Herrera Russell

Under Kansas child tax credit proposal, households could receive between $25-$600 per child every year 

TOPEKA, KAN. — Today, Kansas Action for Children introduced a bill establishing a state child tax credit to benefit thousands of kids living in Kansas households. According to the bill, all parents and caregivers could receive up to $600 per child back on their yearly tax returns.

The Institute on Taxation and Economic Policy estimates state lawmakers would need to invest approximately $145 million annually to implement the tax credit. About 92% of that money would flow back to households in the bottom 80% of tax filers. Under this proposal, nearly 647,000 kids living in Kansas households would be helped.

The proposed tax credit is universal but amounts per child vary based on household income, where parents would receive between $25-$600 back on their tax returns for each child under 18. This plan would also ensure every household could receive the credit, regardless of how much income tax they pay.

Kansas Adjusted Gross Income Amount of Credit Per Qualifying Child
$0-$25,000 $600
$25,001-$50,000 $400
$50,001-$75,000 $200
$75,001-$100,000 $100
$100,001-$200,000 $75
$200,001-$350,000 $50
$350,001 or more $25

“Families are what make our state great, and investing in them is strengthening Kansas’ future,” said John Wilson, President and CEO of Kansas Action for Children. “At a time when we’re seeing an increased cost of living and our child poverty numbers inching back up, we must act to give Kansas families targeted relief.”

The bold proposal follows Governor Kelly’s veto of a tax package that included a flat tax, which would have overwhelmingly given a majority of the income tax savings to the highest-income Kansans.

Wilson continued, “Already this session, lawmakers passed a costly, upside-down tax proposal. If the Governor hadn’t vetoed the bill, it would have eventually hindered state revenues to where we couldn’t afford to make investments in Kansas families. A state child tax credit is an affordable tax cut that would give parents more money in their pockets to spend on basic necessities, boosting their families’ financial security and local Kansas economies.”