Option 2: $275 Refundable Child Tax Credit with Phaseout at Higher Income Levels

Estimates of the distributional impact of increasing the Idaho Child Tax Credit from $205 to $275 per child with phaseouts and making the credit refundable, by income group. This option would give $49 million back to Idaho families.

Taxpayers would be eligible for the full amount of the $275 credit if their MAGI is $100K for filing single/married filing separately, $200K for married filing jointly, and $150K for filing head of household. If their MAGI exceeds those limits, the credit is reduced by $5 for each $10 of income above the threshold until it is phased out completely.
Chart: Idaho Center for Fiscal PolicySource: Institute on Taxation and Economic Policy, 2025Download imageCreated with Datawrapper