NEW YORK (PIX11) – The U.S. House of Representatives has approved an expansion to the federal Child Tax Credit, which would give parents with children more money during the tax season.
The bipartisan legislation would raise the amount of credit available as a refund every year, starting at $1,800 for 2023 tax returns. Parents would then get $1,900 in their 2024 tax returns and $2,000 in their 2025 tax returns.
Currently, parents who qualify get $1,600.
To qualify for the federal Child Tax Credit, you must have a child under the age of 17.
Luckily, there is an additional way for New York residents to make more money on their returns if they have children.
The Empire State Child Credit
If you qualify for the federal Child Tax Credit, then you qualify for the Empire State Child Credit. The refundable credit is available for those who have a child under the age of 17 and either lived in New York for at least a year or are married to someone who has lived in the state for a full year.
You also qualify for the Empire State Child Credit if your federal adjusted gross income is $110,000 or less when filing jointly with a partner, $75,000 or less if you're filing on your own, or $55,000 or less if you're married but filing separately.
How much money will the state give you?
There are two ways New York will offer you money for the Empire State Child Credit if you've accepted the federal Child Tax Credit. The first offer is 33% of the federal Child Tax Credit based on federal credit amounts and income thresholds that were in effect in 2017.
That's due to the Tax Cuts and Jobs Act passed by former President Donald Trump in 2017. The state no longer lets residents calculate the Empire State Child Credit based on the current federal Child Tax Credit as of 2018, according to officials.
The second offer is $100 multiplied by the number of qualifying children. The state will offer the greater of the two amounts.
If you didn't accept the federal Child Tax Credit but still qualify, the state can give you $100 per child.
The Child Tax Credit expansion passed by the House is part of a $78 billion tax bill that faces an uncertain future in the Senate, where Republicans are eager to make changes to it.
Erin Pflaumer is a digital content producer from Long Island who has covered both local and national news since 2018. She joined PIX11 in 2023. See more of her work here.
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