Good news for New York families! A major boost to the Empire State Child Credit (ESCC) could soon put up to $1,000 directly into your bank account starting May 2025. As part of Governor Kathy Hochul’s 2025 executive budget, this plan aims to help more households by increasing the Child Tax Credit amount and expanding who qualifies.
If approved, over 1.6 million families and 2.75 million children across the state could benefit. Here’s everything you need to know about this upcoming payment, eligibility rules, how to claim it, and when you might see the money.
What Is the $1000 NY Child Tax Credit?
The Empire State Child Credit is a refundable tax benefit that supports families with children. Right now, it offers up to $330 per child aged 4 to 16, but younger children were left out. The new proposal fixes this by:
- Extending benefits to children under age 4
- Raising the maximum amounts for all eligible children
- Giving more support to low- and middle-income families
The new credit would offer:
- $1,000 per child under age 4
- $500 per child aged 4 to 16
This change is designed to fight child poverty and help families deal with rising living costs.
How Much Can You Get?
The maximum credit depends on your child’s age and your family income. Here’s the breakdown:
Maximum Credit:
- Up to $1,000 for children under 4
- Up to $500 for children aged 4–16
Income-Based Phaseout:
| Income Range | % of Maximum Credit |
|---|---|
| Under $10,000 | 100% |
| $10,000–$25,000 | 75% |
| $25,000–$50,000 | 50% |
| Over $50,000 | 25% (credit phases out for higher incomes) |
If your Adjusted Gross Income (AGI) is under $110,000, you could get the full amount.
When Will the $1000 NY CTC Payments Start?
If the New York State Legislature approves the budget, direct deposit payments could begin as early as May 2025 for families with children under age 4.
Payments for families with older children are expected to follow in 2026.
How Will You Receive the Payment?
The Department of Taxation and Finance plans to send payments through:
- Direct deposit (fastest and safest option)
- Paper checks (for those who don’t have direct deposit setup)
Make sure your banking and mailing information are correct on your 2024 tax return.
Eligibility: Who Can Get the $1000 NY Child Tax Credit?
To qualify for the 2025 expanded ESCC, you must:
- File a 2024 New York State personal income tax return (Form IT-201) by April 15, 2025
- Claim a child as a dependent
- Ensure the child:
- Is under age 17
- Is your child, stepchild, foster child, sibling, or grandchild
- Lived with you for more than half of 2024
- Is a U.S. citizen, national, or resident alien
Important:
This credit is separate from the federal Child Tax Credit. It is only available to New York State residents.
How to Claim the $1000 NY CTC Payment
Follow these simple steps:
Step 1: File Your Taxes
Submit your 2024 New York State tax return (Form IT-201) by April 15, 2025.
Step 2: Provide Direct Deposit Information
Add your current banking details to get paid faster.
Step 3: Watch for Notifications
The New York Department of Taxation and Finance will notify eligible families once payments are scheduled.
Why This Expansion Matters
Refundable tax credits like the CTC are powerful tools for fighting poverty. Experts say they directly help families cover major expenses like childcare, housing, and food.
In 2021, a similar federal program lifted 2.1 million children out of poverty.
New York’s new plan aims to close gaps and make life easier for families raising young children.
Historical Background: Correcting an Old Issue
Earlier versions of the Empire State Child Credit excluded children under age 4 — even though they are often the most expensive to raise. Advocates criticized this gap for years.
The 2025 expansion corrects this unfairness, bringing the program closer to federal standards and making a smart investment in children’s early years.
The proposed $1000 NY Child Tax Credit could be life-changing for many New York families starting in May 2025. By expanding eligibility and increasing payment amounts, the state aims to make a real impact on child poverty and family well-being.
Make sure to file your 2024 taxes on time, provide updated information, and stay informed to take full advantage of this opportunity. If approved, this plan could mean real financial relief for millions across New York.
