New York Expands Child Tax Credit

New York is increasing its child tax credit.

This expansion was approved during the state budget process that wrapped up at the start of May.

To qualify for the credit, you need to be a full-year resident of New York State or married to one. Children who are under 17 can be included.

The credit is something you can claim every year when filing your taxes. So, the next time to file will be in 2026.

There’s also an income cap. For couples filing jointly, the maximum income limit is $110,000, after which the child tax credits will start to phase out.

Here’s what’s important about the expansion:

• Children up to 3 years old can receive a maximum credit of $1,000, which is a significant increase from the previous maximum of $330.
• Kids aged 4 to 16 can qualify for $500, again up from the old maximum of $330.
• The state has made some changes to the rules that previously excluded low-income New Yorkers from accessing the credit.
• Middle-class families who didn’t qualify before due to higher incomes will now be eligible.
• Governor Kathy Hochul’s office states that these changes will allow an additional 187,000 people to benefit from the program.
• Moreover, the average credit amount received by families is jumping from $472 to $943.

The budget also set aside funds for “inflation refund” checks of up to $400, which eligible taxpayers will start receiving in October.

However, some critics, including certain Democrats, have labeled the program as a “witness.”