Although the Biden administration has concluded its monthly child tax credit program aimed at assisting families with the expenses of child-rearing, several states are taking the initiative to establish their own child tax credit programs, with New York being one of them. New York’s initiative, known as the Empire State Child Tax Credit, offers eligible families the opportunity to receive an annual benefit of up to $330 per child aged four to 16.
The specific payment amount for the Empire State child credit is contingent on the household’s income, with specific annual income thresholds serving as eligibility criteria. To qualify, married filers should have a household income of $100,000 or less. Single or head-of-household filers are eligible if their annual income is $75,000 or less, while those who are married but filing separately must have an income of $55,000 or less.
New York’s Empire State Child Tax Credit
Households may be eligible to receive this payment if they received a minimum of $100 for either or both of the credits from New York State in the tax year 2021, which includes the Empire State child credit and/or the New York State earned income credit. In the year 2021, the Biden administration made a significant announcement regarding an extension of the monthly Child Tax Credit (CTC) payments, marking a pivotal step in their efforts to support American families in managing the costs associated with raising children.
This extension brought about a substantial increase in the maximum child credit, raising it from $2,000 per child to $3,600 for children under the age of six and up to $3,000 for children between the ages of six and seventeen. This welcomed boost in financial assistance was met with optimism and relief by many families across the United States, who were grappling with the various expenses of parenting.
However, it’s important to note that the expanded federal child tax credit had a finite lifespan and ultimately reached its expiration in 2022. While this federal program was an instrumental source of support for American families, its termination left many wondering how they would navigate the financial landscape of child-rearing moving forward.
In response to the expiration of the federal child tax credit, New York took proactive steps to address this concern and join the ranks of at least eight states that chose to implement or overhaul existing state child tax credit programs. New York’s initiative, known as the Empire State Child Tax Credit, was designed to bridge the gap left by the conclusion of the federal program. This state-level tax credit program was established to provide essential financial assistance to families in New York and ensure they continued to receive support in raising their children.
To take advantage of the Empire State Child Tax Credit in New York, eligible households are required to complete an IT-213 form and submit it along with their New York State Income tax return. This form can be conveniently downloaded from the official state government website, making it accessible and straightforward for families to apply for this much-needed financial assistance.
In summary, the extension of the federal Child Tax Credit in 2021 was a momentous development in supporting families with the costs of child-rearing, offering increased benefits for eligible households. However, as this federal program reached its conclusion in 2022, states like New York stepped up to provide their own child tax credit programs, ensuring that families continued to receive the financial assistance they relied upon. To apply for the Empire State Child Tax Credit, New York residents can easily obtain the necessary forms online, making the process of accessing this vital support as hassle-free as possible.