Raising children can be expensive, and many families often feel the financial pressure. To help reduce that burden, New York State has introduced a new Child Tax Credit of up to $1,000 per child, offering much-needed support to parents.
This new update, part of Governor Kathy Hochul’s plan, aims to help families afford childcare, basic needs, and improve their children’s quality of life. Let’s break down what this means, who is eligible, how to claim it, and when you can expect to receive the money.
What is the New York Child Tax Credit?
The New York Child Tax Credit is a refundable tax benefit given to families with children. Starting from 2025, families with children under the age of 4 can get up to $1,000 per child, while those with children between ages 4 to 16 can receive up to $500 starting in 2026.
The best part? Even if you don’t owe any state income tax, you can still get the full amount. That’s what makes it a “refundable” credit – it means the state sends you the money even if your tax bill is zero.
Who is Eligible for the Child Tax Credit?
To receive the New York Child Tax Credit, your household needs to meet the following conditions:
Age of Children
You’ll qualify based on your children’s ages:
- Under 4 years: Eligible for up to $1,000 per child
- Between 4 and 16 years: Eligible for up to $500 per child
Income Criteria
- Families with joint income up to $110,000 can claim the full amount.
- Those earning between $110,000 and $170,000 will get a reduced credit.
- Families earning above $170,000 do not qualify.
This structure ensures lower- and middle-income families benefit the most.
When Will Payments Be Made?
The credit is being rolled out in phases:
- 2025: Families with kids under 4 can claim up to $1,000 per child.
- 2026: Families with kids aged 4 to 16 can claim up to $500 per child.
This gradual process gives time for proper implementation and allows families to prepare in advance.
How to Claim the Child Tax Credit
Claiming the credit is easy, as long as you file your taxes properly:
- File your New York State tax return for the applicable year.
- Include the Child Tax Credit section on your return.
- If approved, the credit will be directly deposited into your bank account or sent by cheque.
Remember to use accurate information about your income and children’s ages to avoid delays.
How It Helps Families
This credit will help reduce child poverty in the state by an estimated 8.2%, according to officials. It offers relief especially to families who may not qualify for federal tax breaks or who live on lower incomes.
Other Helpful Benefits in New York
Besides this tax credit, New York families can also explore:
- Federal Child Tax Credit: Offers up to $2,000 per child under 17, but it’s only partially refundable and based on income.
- Earned Income Tax Credit (EITC): For working families with low to moderate incomes.
- Childcare Subsidies: Helps parents pay for daycare and early education.
- SNAP (Food Assistance): Supports low-income families with monthly grocery budgets.
These programs, when combined with the new child tax credit, can make a big difference in the lives of struggling families.
What to Watch Out For
Here are a few common issues to avoid:
- Missed tax deadlines can delay your payment.
- Inaccurate income or age details can lead to rejection.
- Not filing taxes at all means missing out completely, even if you qualify.
Make sure you check all the details carefully before submitting your return.
The updated New York Child Tax Credit is a big step toward supporting families and reducing child poverty. By giving up to $1,000 per child, it eases financial pressure, especially for households that don’t benefit from other tax breaks. Make sure to check your eligibility, file your taxes correctly, and claim what’s yours. This support can go a long way in securing a better future for your children and bringing more financial peace to your home.
