Thousands of Families in New York Could Get More Money in Their Pockets
Proposed Expansion of New York’s Child Tax Credit
Gov. Kathy Hochul has proposed an expansion of New York’s child tax credit, which could give an annual tax credit of up to $1,000 per child under the age of 4 and up to $500 per child from 4 to 16. This proposal represents the single largest boost to New York’s child tax credit in its history, and a significant increase above the current credit of up to $330 per child.
Benefits of the Proposed Expansion
The proposed expansion will drive significant assistance to families with young children and help families across the income spectrum. The average credit given out to families will double from $472 to $943. For example, a family of four with a toddler and school-age child, and a household income up to $110,000, would receive a credit of $1,500 per year, representing nearly $1,000 more per year than what that family receives under the current program.
How the Credit Will Work
The credit will be phased in over two years, with households with children under 4 eligible for their $1,000 credit for the 2025 tax year and those with children over 4 eligible for the $500 credit for the 2026 tax year. The Empire State Child Credit is a refundable credit, which can either help offset taxes or be paid out directly to taxpayers as a refund.
Breakdown by Region
- New York City: 740,000 households, 1.2 million children
- Long Island: 215,000 households, 355,000 children
- Mid-Hudson: 180,000 households, 330,000 children
- Western New York: 118,000 households, 207,000 children
- Finger Lakes: 104,000 households, 180,000 children
- Capital Region: 86,000 households, 145,000 children
- Central New York: 67,000 households, 116,000 children
- Southern Tier: 51,000 households, 89,000 children
- Mohawk Valley: 43,500 households, 76,500 children
- North Country: 35,000 households, 61,000 children
Frequently Asked Questions
Q: When will I start getting this credit?
A: The credit will be phased in over two years, with households with children under 4 eligible for their $1,000 credit for the 2025 tax year and those with children over 4 eligible for the $500 credit for the 2026 tax year.
Q: How will the credit work?
A: The Empire State Child Credit is a refundable credit, which can either help offset taxes or be paid out directly to taxpayers as a refund.
Q: Who is eligible for the credit?
A: The credit is available to jointly filing households with a household income up to $110,000, with a gradual phase-out for higher incomes.
Q: How many families will be eligible for the credit?
A: The proposed expansion will support 1.6 million families overall statewide.
