Ohio Families Are Asking for Help: Understanding the Thriving Families Tax Credit
Across Ohio, families are struggling under the weight of rising living costs, economic uncertainty, and widening financial gaps. Recognizing the urgent need for relief, State Representatives Lauren McNally (D-Youngstown) and Crystal Lett (D-Columbus) have reintroduced a vital piece of legislation aimed at supporting working families: the Thriving Families Tax Credit.
What Is the Thriving Families Tax Credit?
The Thriving Families Tax Credit, introduced as House Bill 140, proposes a refundable tax credit for Ohioans with dependent children. The legislation was reintroduced in March 2025 and discussed at a roundtable in Dublin in May, where both representatives emphasized its potential impact on middle- and low-income households.
Under the proposal:
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Families would receive $1,000 per child under the age of six.
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Families would receive $500 per child aged six to seventeen.
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The credit is refundable, meaning eligible families would receive the full amount, even if it exceeds their tax liability.
Who Qualifies?
The credit is targeted toward middle- and low-income families:
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Families earning under $65,000 annually would qualify for the full benefit.
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Those earning between $65,000 and $85,000 would see a gradual reduction in the credit amount.
This structure ensures that the families most in need of financial support receive the greatest benefit. In total, it’s estimated that 1.8 million children in Ohio could be positively impacted.
The Case for Relief
The tax burden in Ohio, like in many states, tends to fall most heavily on the working class. According to an analysis by Policy Matters Ohio, Ohioans earning less than $24,000 a year currently receive an average annual tax cut of just $122 — the equivalent of $10 a month. This minimal relief barely makes a dent in monthly expenses such as groceries, housing, transportation, or childcare.
“This is about meeting families where they are,” said Rep. Lett. “The 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. McNally echoed this urgency: “Ohio families are asking for help, and the Thriving Families Tax Credit sends a strong message that we are listening. 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.”
A Growing National Movement
Ohio is not alone in pursuing a state-level child tax credit. Currently, 13 other states offer similar refundable or non-refundable tax credits for families, including Idaho, Utah, New Mexico, and Vermont. In recent years, many more states have introduced comparable legislation, reflecting a nationwide recognition of the importance of supporting families with children.
These state-level credits often complement the federal Child Tax Credit (CTC), and together they help reduce child poverty, encourage labor force participation, and ease the financial pressure on households with children — particularly those headed by single parents, caregivers, or low-wage earners.
Conclusion
The Thriving Families Tax Credit is a reflection of Ohio’s commitment to its people. As working families grapple with economic instability, this initiative could offer a lifeline, putting money back into their pockets and ensuring that children across the state have the resources they need to thrive.
In the words of Rep. Lett, this is a moment to choose people over politics: “The credit affirms the dignity of working families and shows them that their government sees them, values them, and is willing to invest in their futures.”
