Minnesota HF4890 expands the child credit and establishes a fifth tax tier for individual income tax.

Minnesota HF4890 expands the child credit to $2,000 per qualifying child and introduces a fifth tax tier for individual income tax. The bill adjusts the income tax brackets and rates for different filing statuses, including married filing jointly, separately, and as head of household. It also mandates annual inflation adjustments to the credit amount and phaseout thresholds. Effective for taxable years after December 31, 2025.

Minnesota HF4890 expands the child credit and establishes a fifth tax tier for individual income tax.

Minnesota HF4890 expands the child credit to $2,000 per qualifying child and introduces a fifth tax tier for individual income tax. The bill adjusts the income tax brackets and rates for different filing statuses, including married filing jointly, separately, and as head of household. It also mandates annual inflation adjustments to the credit amount and phaseout thresholds. Effective for taxable years after December 31, 2025.