Gov. Kathy Hochul has proposed a significant expansion of New York’s child tax credit, aiming to provide families with as much as $1,000 per child over the next two years. This plan is designed to help around 1.6 million families by reducing taxes and alleviating child poverty. Hochul announced this proposal on January 8 as part of a preview for her upcoming State of the State speech and budget plan, set to be revealed later in January.
Currently, New York families can claim up to $330 per child in tax credits. Under Hochul’s proposal, this amount would rise substantially. For children under age 4, families could claim up to $1,000 starting with the 2025 tax year. For children aged 4 to 16, the maximum credit would be $500 the following year. The proposal is expected to double the average tax credit for qualifying families from $473 to $943.
“I want to support families, especially in those earliest years when you’re not getting enough sleep at night,” Hochul said during her announcement. “I know that. You’re stressed out. But family by family, child by child, community by community, we will make this place better and more livable and more affordable.”
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While the cost of the expanded credit has not yet been disclosed, the Governor’s office has indicated it will be included in the budget proposal. Hochul has already suggested adding $3 billion to fund “inflation refund” checks ranging from $300 to $500 for New Yorkers, marking the start of her “affordability agenda.”
Who qualifies for New York’s child tax credit?
The existing program, as well as the proposed expansion, is available to New Yorkers with incomes below certain thresholds. Couples with joint tax returns who earn $110,000 or less and single parents earning $75,000 or less are eligible for the maximum credit. Those with higher incomes can claim smaller credits, which gradually phase out as income increases.
For instance, a couple with an income of less than $110,000 and two children currently qualifies for a $660 credit. Under the proposed plan, this credit would rise to at least $1,000 and could go as high as $2,000, depending on the children’s ages.
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While the exact amounts for families earning more than $110,000 have not been specified, Hochul’s office did provide an example: a family of four earning $170,000, who would not qualify under the current system, could receive more than $500 under the new plan.
Hochul’s administration estimates that this proposal could reduce child poverty in New York by 8.2%, bringing much-needed financial relief to families across the state.
