New Connecticut Child Tax Credit Proposal: Families Could Receive Up to $1,800 in 2026

Families across Connecticut may soon receive significant tax relief under a new Child Tax Credit proposal for the 2026 tax year. State lawmakers are advancing legislation that would provide up to $600 per child, with a maximum annual benefit of $1,800 per household.

The proposal, currently under review in the Connecticut General Assembly, is designed to help working families offset rising child-rearing costs such as housing, childcare, healthcare, and education. Supporters say the refundable tax credit could benefit more than 550,000 children statewide if enacted. (https://www.wfsb.com)

If approved during the 2026 legislative session, eligible households would begin claiming the credit on state income tax returns filed in 2027.

Overview of the Proposed Connecticut Child Tax Credit (2026)

The new proposal aims to create a fully refundable state Child Tax Credit, meaning families could receive the payment even if they owe little or no income tax.

Program Element	Details
Program Name	Connecticut Child Tax Credit (Proposed)
Maximum Benefit	Up to $600 per child
Household Cap	$1,800 maximum per family (3 children)
Eligible Children	Generally under age 17
Income Limits	Up to $100,000 (single) / $200,000 (joint filers)
Refundable	Yes – families may receive the full credit even if no tax is owed
Expected Start	2026 tax year
Claim Timeline	Filed the 2026 state tax return in 2027

The legislation has been promoted by lawmakers, including Representative Kate Farrar and other Democratic legislators, who argue that the policy provides direct financial relief to working families facing rising living costs in the state. (https://www.wfsb.com)

Policy Background: Why Connecticut Is Considering a Child Tax Credit

Compared with many states that levy income taxes, Connecticut currently does not adjust its personal income tax system based on family size, which has been a long-standing policy concern among child welfare advocates. (https://www.wfsb.com)

The push for a state-level credit gained momentum after the temporary expansion of the federal Child Tax Credit during the COVID-19 pandemic demonstrated measurable reductions in child poverty nationwide.

State lawmakers argue that creating a permanent state credit could:

• Reduce child poverty rates
• Support middle-income families
• Offset childcare and housing expenses
• Provide economic stability for working households

According to legislative discussions in 2026, the proposed program could impact approximately 75% of families with children statewide if income thresholds remain in place. (https://www.wfsb.com)

Eligibility Requirements (Proposed)

Eligibility criteria in the draft legislation focus on working families with moderate incomes.

Basic Eligibility Rules

Applicants would likely need to:

• Be a resident taxpayer in Connecticut
• Claim at least one qualifying dependent child under 17
• File a Connecticut state income tax return
• Meet income thresholds established by the program

Proposed Income Limits

Filing Status	Income Threshold
Single Filers	Up to $100,000
Married Filing Jointly	Up to $200,000

Families with incomes above these thresholds may see partial credits or phase-outs, depending on final legislative language.

How Much Families Could Receive

The proposed benefit structure is straightforward and designed for easy calculation.

Number of Eligible Children	Credit Amount
1 child	$600
2 children	$1,200
3 children	$1,800 (maximum)

The credit would be refundable, meaning the state would issue a refund if the credit exceeds the taxpayer’s liability.

Example:

• Family with two children
• Eligible income level
• Credit received: $1,200

Legislative Status and Policy Timeline

Current Status (2026)

Several proposals related to the credit have been introduced in the legislature, including House Bill 5134, which would establish the refundable tax credit. (https://www.wfsb.com)

Supporters in the Connecticut Senate and Connecticut House of Representatives have argued the policy is a proven mechanism to support families and reduce financial pressure on parents. (CT Mirror)

Estimated Implementation Timeline

Phase	Expected Timeline
Legislative debate	2026 session
Budget approval	Mid-2026
Credit applies to tax year	2026
Families claim credit	Early 2027 tax filing

Because the measure is still under consideration, the final funding level and eligibility rules may change during budget negotiations.

How Families Would Claim the Credit

If approved, the application process would likely follow the standard tax filing system.

Step-by-Step Process

1. File Connecticut state income tax return
2. Report qualifying dependents under age 17
3. Complete the Child Tax Credit section on the state tax form
4. Calculate credit based on number of eligible children
5. Receive credit as either:
   • Tax reduction, or
   • Refund payment

Most taxpayers would claim the credit using the Connecticut Department of Revenue Services (DRS) tax filing system.

Required Documentation

Applicants would likely need to provide:

• Social Security Numbers or taxpayer IDs for children
• Proof of residency in Connecticut
• Income documentation (W-2s, 1099s)
• Federal tax return information
• Dependent verification documentation

Maintaining accurate documentation helps prevent application delays or audit reviews.

Relationship to Other Connecticut Tax Relief Programs

The Child Tax Credit proposal is part of a broader tax relief strategy supported by Governor Ned Lamont.

Other initiatives under consideration include:

• Expanded property tax credits for middle-income residents
• Increased funding for childcare programs
• Expanded eligibility for state tax relief measures

For example, Lamont’s budget proposal also includes raising the state property tax credit to $350, benefiting approximately 800,000 taxpayers statewide. (CT.gov)

These policies aim to address rising living costs and improve financial stability for working families.

Why State Child Tax Credits Matter

Research from federal and state programs shows that child tax credits can:

• Increase family financial security
• Reduce childhood poverty rates
• Improve long-term educational outcomes
• Boost local economic activity

State-level credits also help fill gaps left after the expiration of the enhanced federal Child Tax Credit that was implemented during the pandemic.

FAQs

Who is eligible for the Connecticut Child Tax Credit in 2026?

Eligible taxpayers would likely include Connecticut residents with dependent children under age 17 who meet income limits, currently proposed at $100,000 for single filers and $200,000 for married couples.

How much money could families receive?

Families could receive $600 per child, up to three children, for a maximum credit of $1,800 per household per year.

When will families receive the payment?

If approved, the credit would apply to the 2026 tax year, meaning families would claim it when filing their state tax returns in early 2027.

How do families apply for the credit?

Families would claim the credit when filing their Connecticut state income tax return through the Department of Revenue Services.

What documents are required?

Typical documentation may include:

• Proof of income
• Social Security numbers for dependents
• Connecticut residency verification
• Federal tax return details

Why might an application be rejected?

Common reasons could include:

• Income exceeding eligibility limits
• Missing dependent documentation
• Filing errors in the tax return
• Residency verification issues

Sources

1. Connecticut General Assembly – SB 103 Bill Text
   https://www.cga.ct.gov/2026/TOB/S/PDF/2026SB-00103-R00-SB.PDF (Connecticut General Assembly)
2. Connecticut General Assembly – SB 740 Bill Status Page
   https://www.cga.ct.gov/asp/CGABillStatus/cgabillstatus.asp?bill_num=SB740&selBillType=Bill (Connecticut General Assembly)
3. Connecticut General Assembly – HB 5986 Child Tax Credit Bill
   https://www.cga.ct.gov/asp/CGABillStatus/cgabillstatus.asp?bill_num=HB5986&selBillType=Bill (Connecticut General Assembly)
4. Connecticut General Assembly – HB 5134 Refundable Child Tax Credit
   https://www.cga.ct.gov/asp/CGABillStatus/CGABSSimilar.asp?bill_num=HB05134 (Connecticut General Assembly)
5. Connecticut General Assembly – Legislative Bulletin (SB 103 listing)
   https://www.cga.ct.gov/2026/bul/2026BUL00223-R00-BUL.HTM (Connecticut General Assembly)