New York State Encourages Taxpayers to Review Eligibility for Tax Credits

New York state is urging millions of taxpayers to assess their eligibility for various tax credits as we approach the 2026 tax season.

For the 2025 tax year, both the Earned Income Tax Credit and the Empire State Child Credit could lead to substantial savings for state residents.

Importance of the Situation

As tax season kicks off, the Trump administration is promoting tax reductions for working families that are projected to yield what they describe as “the largest tax refunds in U.S. history,” according to a statement from the Treasury Department on social media.

On average, households may see tax refunds increase by about $1,000, with over 100 million households potentially qualifying for these refunds. An expanded child tax credit could mean an average tax reduction of $1,700 for families with two children.

Essential Information

The New York State Department of Taxation and Finance has recommended that taxpayers verify their eligibility for this year’s tax credits in a recent announcement.

Amanda Hiller, acting commissioner of the department, emphasized that the enhancement of the Earned Income Tax Credit and Empire State Child Credit directly benefits working taxpayers. “I encourage everyone who may qualify to utilize these significant benefits, especially those who are struggling to get by,” she stated.

Working taxpayers earning under $68,675 can apply for the Earned Income Tax Credit, which allows for potential refunds even if deductions surpass tax liability.

When combined with federal and state credits, eligible families with three or more children could receive up to $12,873, as noted by the New York Department of Taxation.

This year, the Empire State Child Credit was also expanded, increasing the maximum amount for children under four years old from $330 to $1,000 each.

To qualify for the refundable credit, you must be a year-round resident of New York State with at least one qualifying child under 17 as of December 31 of the application year.

Kevin Thompson, CEO of 9i Capital Group, highlighted the importance of reviewing tax credits, explaining that credits are fundamentally different from deductions. “Tax credits are far more advantageous than deductions since they directly reduce your tax bill,” he said. It’s crucial to understand what you qualify for every tax season.

Public Opinions

Kevin Thompson remarked: “Bottom line: Don’t take for granted that last year’s credits apply the same this year. Review your credits, understand eligibility, and don’t miss out on potential savings.”

Financial literacy instructor Alex Bean noted: “If you file a personal income tax return in New York, it’s fairly easy to qualify for both credits. Given the rising costs of everyday items, these credits offer significant relief to New Yorkers.”

Drew Powers, founder of Powers Financial Group in Illinois, stated: “These credits cater to low- to moderate-income earners, so even slight variations in income can make you eligible. It’s important for all taxpayers to carefully calculate both federal and state-level credits, regardless of past qualifications.”

Looking Ahead

Taxes are due by April 15 unless an extension is requested.

With expected larger tax refunds, many Americans might maintain greater purchasing power in the upcoming year.

“We anticipate that this revision will enable more Americans to see an increase in their rebate checks, helping to address broader affordability concerns,” Bean previously stated.