Last year, living in the Big Apple State got a little sweeter: Gov. Kathy Hochul announced $350 million in New York state revenues that were sent throughout August. This was part of the state’s expanded Empire State Child Tax Credit program.
Recently, New York Gov. Kathy Hochul proposed further expanding the Empire State Child Credit. Her proposal, which increases the maximum annual credit, could benefit millions of New York taxpayers.
Here are the program requirements, eligibility requirements, and how much families expected in their mailboxes last year, in case there's a similar payout in 2025.
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What is the NY Child Tax Credit?
The Empire State Child Credit (ESCC) is a tax break for New York-eligible families with children under 17. This credit, designed to help families with childcare expenses, is refundable, meaning you could still be eligible to claim part of this credit even if your family didn't owe any tax.
There were several eligibility requirements that families must have met to qualify for the 2023 ESCC, including:
- Being a full-year New York resident or married to a full-year resident
- Having a child that qualified for the federal child tax credit
- Claiming a child tax credit based on 2017 income thresholds OR having met 2023 federal income requirements
After meeting the eligibility requirements, families could claim up to a certain dollar amount per child on their 2023 tax return.
Who qualified for the New York child tax credit check?
You may have received the check in your mailbox if you were a New York resident. To qualify, you must have met the below eligibility requirements:
- Claimed the Empire State Child Credit for 2023
- Received at least $100 from the ESCC
- Filed your return by the April 15, 2024 deadline (or had a valid extension)
How much was the child tax credit check?
You could have received up to $330 per child. However, the exact amount was based on your federal adjusted gross income (AGI) on your 2023 tax return. And the payment was anywhere between 25% and 100% of your claimed child tax credit. For example, if your federal AGI was $10,000, you received the full $330 per child.
Additional calculations are found below. If your federal AGI was…..
- More than $10k and less than $25k, you received 75% of your ESCC
- More than $25k and less than $50k, you received 50% of your ESCC
- More than $50k, you received 25% of your ESCC
To help you calculate your estimated amount, the state of New York provided an interactive calculator on their website.
How could I have applied for a check?
There was no application process. You were automatically enrolled based on your 2023 tax filing.
You could check the status of your check by visiting the state’s Department of Taxation and Finance website.
Will there be a second check mailout for 2025?
The 2024 tax credit mailout was a one-time occurrence, however as Kiplinger reported, Gov. Hochul aims to triple the Empire State Child Credit.
When asked about last year's payments, Gov. Hochul said, “I’ll never stop fighting to address the cost of living for working parents.” This is predicated on her work expanding tax refunds for New Yorkers two years ago.
If Hochul’s commitment rings true, we may see potential expansion of this program in the future.
Bonus NY child benefit?
On a related note, Albany State Senator Jake Ashby (R-N.Y.) wants to supplement the child tax credit by issuing more money. His new bill would pay families $1,000 for every new baby — regardless of the parent’s income. Similar to the ETC payout, this payout would be fully refundable.
Sen. Ashby's bill could help address the declining birthrate in New York. Child poverty and high cost of living have a history of impacting families in the Empire State, particularly New York City. While new to New York, the proposal is similar to programs offered in other states.
Michigan, for example, offers Flint parents $1,500 per pregnancy plus an additional $500 once the baby is born; while states like California, Connecticut, and Washington, D.C. issue “baby bonds”. Baby bonds benefit lower-income children by giving them a government-funded savings account. This can be particularly useful in impoverished areas.
If Sen. Ashby’s bill is passed, the “baby bonus” program will go into effect on April 1, 2025. That means all NY infants born on or after that date would give their parents a new birthday gift: $1,000 cash.
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