New York families have a new reason to look forward to tax season. Thanks to a $350 million allocation from Governor Kathy Hochul, eligible parents can now receive up to $330 per child through the Empire State Child Tax Credit (ESCTC). This financial boost is designed to help ease the rising costs of raising children, especially as inflation continues to impact everyday living expenses.
Below, we’ll break down who qualifies, how much you could receive, and what steps are needed to claim this child-focused tax credit.
What Is the Empire State Child Tax Credit?
The Empire State Child Tax Credit (ESCTC) is a state-level tax benefit aimed at helping families cover child-related expenses. Modeled similarly to the federal child tax credit, the ESCTC targets households with children under the age of 17. The goal is to reduce the financial burden on low- to moderate-income parents.
In 2024, the state has significantly expanded the program by setting aside $350 million to enhance the payments under this initiative.
Who Qualifies for the ESCTC?
To be eligible for the Empire State Child Tax Credit in 2024 (based on 2023 tax filings), you must meet the following conditions:
- Residency: You must be a full-year resident of New York State or married to someone who is.
- Federal Credit Qualification: You must have qualified for the federal child tax credit for the 2023 tax year.
- State Claim: You must have already claimed the Empire State Child Credit on your 2023 return.
- Minimum Claim Requirement: You must have claimed at least $100 through the ESCTC in your 2023 taxes.
- Timely Filing: Your taxes must have been filed by April 15, 2024, or you must have a valid extension or reason for delay.
How Much Can You Claim?
The ESCTC is income-based and operates on a sliding scale. The amount you receive is determined by your federal adjusted gross income (AGI) from your 2023 tax return.
Here’s a breakdown of the benefit amounts by income range:
| Federal AGI (2023) | Percentage of $330 | Credit Per Child |
|---|---|---|
| $0 – $10,000 | 100% | $330 |
| $10,001 – $24,999 | 75% | $247.50 |
| $25,000 – $49,999 | 50% | $165 |
| $50,000 and above | 25% | $82.50 |
Note: The IRS defines federal AGI as your gross income minus allowable deductions such as traditional IRA contributions, student loan interest, and certain business expenses.
When Will Payments Be Issued?
While the exact date of payment disbursement hasn’t been publicly confirmed, eligible taxpayers should expect the credit to be issued after tax processing concludes. If you qualified and filed on time, the payment may come in the form of a direct deposit or mailed check, depending on how you filed your 2023 taxes.
Keep in mind that this is in addition to any refund you may receive from the state or federal tax credits.
What If I Missed the Tax Deadline?
If you didn’t file your taxes by April 15, 2024, but have a valid reason (such as a tax extension or documented hardship), you may still qualify. However, prompt action is advised. Late filers should ensure all documentation is accurate and submitted as soon as possible to avoid missing out.
This expansion of the Empire State Child Tax Credit is a meaningful step in supporting working families across New York. With childcare costs at record highs, this extra cushion can help ease the load, especially for households that need it the most.
FAQs:
Can I claim the credit if my child turns 17 in 2024?
No, the ESCTC only applies to children under age 17 during the 2023 tax year.
Will I receive this payment automatically?
If you qualified and filed taxes correctly by the deadline, the payment should be issued automatically.
Do I need to apply separately for this credit?
No separate application is required. It’s based on your 2023 tax return data.
