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Good news with the CTC with up to $1,000 refund: if you live in this state, you get an increase in the Child Tax Credit

New York families could see a financial boost with changes to the Child Tax Credit, promising relief for households across the state.

New York families could see a financial boost with changes to the Child Tax Credit, promising relief for households across the state.
Boy_AnupongGetty Images

Raising children isn’t cheap. If you’re a parent, like me, then you don’t need any elaboration as to why. From diapers to daycare, the expenses add up quickly, and that’s just the needs... not the wants. But for residents of a certain state, there is some financial relief on the horizon.

In a recent announcement, Governor Kathy Hochul unveiled a proposal to expand the state’s Child Tax Credit. This initiative aims to provide families with increased financial support, acknowledging the high costs associated with raising children today.

How does New York CTC affect me?

If you’re a resident of the Big Apple, this proposal could directly impact your wallet. The plan introduces a phased approach over two years:

  • 2025 Tax Year: households with children under four years old would be eligible for a $1,000 credit per child.
  • 2026 Tax Year: families with children aged four and older would qualify for a $500 credit per child.

This is a significant boost from the current credit, which offers $330 per child. The expansion is designed to assist approximately 1.6 million families across the state, benefiting over 2.75 million children.

Why the increase to the NYC CTC?

Governor Hochul emphasized the financial challenges many families face, stating, “From groceries to strollers to kids’ clothes, the cost of living and raising a family is still too damn high.” The expanded credit aims to alleviate some of these burdens by putting more money back into the pockets of hardworking families.

Will this affect child poverty?

The proposed expansion is not just about immediate financial relief. It’s estimated that this initiative could reduce child poverty statewide by 8.2%. When combined with other measures, such as expanded subsidized child care, the reduction could reach 17.7%.

When can I expect the CTC?

The credit is expected to be phased in over two years. Households with children under four can claim the $1,000 credit for the 2025 tax year, while those with older children will be eligible for the $500 credit in the 2026 tax year. The Empire State Child Credit, to give it its official name, is refundable, meaning it can either help offset taxes owed or be paid out directly as a refund.

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