“Ohio families are asking for help.” What is the Thriving Families Tax Credit?
In May, State Reps. Lauren McNally (D-Youngstown) and Crystal Lett (D-Columbus) co-hosted a roundtable in Dublin about House Bill 140.
House Bill 140 is also called the Thriving Families Tax Credit legisltation the two representatives reintroduced in March.
What is the Thriving Families Tax Credit?
According to the representatives, this legislation would authorize a refundable tax credit for a taxpayer with dependent children.
The full amount of the credit is $1,000 for each child under six years old and $500 for all other kids under 18, allowing Ohio’s middle and low-income families to get a reimbursement during taxable years.
Policy Matters Ohio found that Ohioans who make less than $24,000 a year receive an average tax cut of $122 a year.
“That’s only about $10 a month,” Rep. Lett said. “Tax burden overwhelmingly falls on the working class and that burden is being felt now more than ever.”
“The Thriving Families Tax Credit is a fiscally responsible solution to that problem and alleviates the high cost-of-living,” Rep. Lett said.
Families earning less than $65,000 annually would qualify for the full benefit amount, with benefits tapering off for families earning between $65,000 and $85,000.
An estimated 1.8 million children would benefit statewide, according to the representatives.
“Ohio families are asking for help, and the Thriving Families Tax Credit sends a strong message that we are listening,” Rep. McNally said. “If we really want Ohio to be the best place in the country to raise a family, then we need to start putting families first.”
Ohio would join 13 other states who currently offer either refundable or non-refundable state-level child tax credits, including Idaho, Utah, New Mexico and Vermont, with many more having introduced legislation to create such a benefit in the last five years.
