With the 2025 summer holidays approaching, families from across New York City will be getting a surprise in the form of an unexpected boost to their holiday budgets. All thanks to the expansion of the New York State child tax credit, all eligible parents can now receive $1,000 per child which surely is a welcomed surprise particularly during the season when childcare, travel, and everyday expenses are at their peak.
The child tax credit is a credit that is meant to alleviate some pressures of working and middle-class families. This expanded program shows a significant shift in the state-level support offered to parents.
More about the New York child tax credit
This New York State child tax credit is a refundable tax benefit given to parents and guardians with qualifying children. This child tax credit can help parents and guardians with the burden of raising kids in a state deemed one of the country’s most expensive states.
As of 2025, eligible families in New York will receive $100 per child or 33% of the federal child tax credit amount, depending on whichever one is greater. As per new developments of the 2026 State Budget agreement, families will see their credits double in size with payments of up to $1,000 per child under age 4, and $500 per child aged between 4 to 16. This particular move means that the average credit will increase from $472 to $943 per family as mentioned by state officials.
According to Governor Kathy Hochul the expansion was needed as, “Putting nearly $5,000 back in the pockets of families means helping New Yorkers afford the rising costs of groceries, raising kids, and just enjoying life.” Another advantage of this credit is that it offsets state income taxes or results in a cash refund if no taxes are owed.
Who is eligible for this 2025 child tax credit?
Eligibility for this particular benefit is determined when families meet multiple criteria pertaining to income, child age, and residency.
Income limits
- Married couples filing jointly must earn only $110,000 in adjusted gross income (AGI)
- Heads of households must earn no more than $75,000 AGI
- Single or married couples who file separately must have an income limit of $55,000 AGI
Child age requirements
- Children must be at least 4 years old and younger than 17 by the end of 2025 in order to qualify for the current credit.
- According to the expanded 2026 version, children under the age of 4 could be included for the first time making them eligible for the larger $1,000 payment.
Residency requirements and tax filing requirements
- For the child to be eligible, the child must have lived with the claimant for more than half of 2025 in New York City.
- All children must be U.S. citizens, nationals, or resident aliens.
- The child must be listed as a dependent on parents or guardians federal and New York State tax return.
How can New Yorkers claim this child tax credit?
While filing for this child tax credit can be relatively easy, citizens should follow all of these steps:
- File a New York State income tax return (Form IT-201).
- Complete Form It-213 which pertains to the child tax credit.
- The parent or guardian must claim for the qualifying child on their federal tax return.
- For faster processing and gaining a quicker access to your refund, you must E-file your tax return.
This summer, approximately 1,2 million children in New York are expected to receive this benefit. This year, families with younger children who were previously excluded from this child tax credit will be included as per the greater shift towards economic equity.
Understanding the purpose of this child tax credit
The Empire State Child Credit is provided to assist families who are financially overwhelmed due the high costs of childcare, food, and travel. As such, this expanded child tax credit acts as a seasonal safety net assisting families to afford these extra expenses. The extra $500 to $1,000 per child will make a huge difference to New York families.
While this child tax credit must be claimed for on the federal tax return, there are 3 other credits that almost nobody claimed for during this tax season.
