Is Your Family Eligible for New York’s New $1,000 Child Tax Credit?
New York families are set to receive much-needed financial relief as Governor Kathy Hochul announces a proposal to increase the state’s Child Tax Credit. This expansion, part of the governor’s 2025 economic plan, raises the maximum credit amount to $1,000 per child under the age of four and $500 per child aged four to sixteen. This is a significant jump from the current maximum of $330 per child.
The plan is designed to help working families cope with rising costs and reduce child poverty across the state. If approved, it could impact millions of families starting as early as 2025.
What’s Changing?
Under the proposed expansion:
- Families with children under four years old could receive up to $1,000 annually per child.
- Parents of children aged four to sixteen would be eligible for up to $500 per child.
The plan also broadens income eligibility, allowing families earning up to $170,000 annually to qualify for the credit. This means that many middle-class families, previously ineligible, could now benefit from this expanded program.
How Does It Work?
The proposal will roll out in two phases:
- 2025: Families with children under four will start receiving the increased credit.
- 2026: The expanded benefits will include families with children aged four to sixteen.
To qualify, families must meet basic requirements such as being New York State residents and filing a state income tax return. The child must also meet dependency guidelines and live with the claimant for at least half the year.
Why It Matters
This change could significantly improve the financial well-being of New York families. According to estimates, the average annual tax credit will rise from $472 to $943, putting more money directly into parents’ pockets. For example, a family with a toddler and a school-aged child earning $110,000 a year could now receive $1,500 in total credits a dramatic increase from the current benefit.
Governor Hochul has emphasized that this expansion is part of her broader plan to make New York more affordable for middle-class families. Alongside this tax credit increase, her administration is also introducing middle-class tax cuts and an Inflation Refund initiative, aiming to deliver $3 billion in direct payments to over eight million New Yorkers.
Who Benefits?
The expanded Child Tax Credit could reach more than 2.75 million children across the state. The governor’s office projects a reduction in statewide child poverty by 8.2%. Combined with other initiatives like expanded subsidized child care, this effort could lead to an overall reduction of nearly 18% in child poverty.
What’s Next?
The proposal still needs to pass through the state legislature. Governor Hochul is pushing for quick approval, stressing the urgency of supporting families during tough economic times.
Families should keep an eye on updates regarding eligibility and application processes to ensure they don’t miss out on these enhanced benefits. This expansion could make a significant difference for parents juggling rising living expenses.
If you’re a parent in New York, now is the time to check your eligibility and plan for this potential financial boost.
