Beginning with tax year 2025, New York has significantly expanded the Empire State Child Credit, making it more valuable and accessible for families across the state. This refundable credit is designed to provide direct financial relief to households raising children, especially those with younger dependents.
With higher per child amounts, clearer eligibility rules, and faster refund delivery through direct deposit or debit card, the updated credit plays an important role in family financial planning for the 2026 filing season and beyond. Understanding how the credit works, who qualifies, and how to claim it correctly can help families receive the full benefit they are entitled to.
Overview of the Empire State Child Credit
The Empire State Child Credit is a refundable New York State income tax credit claimed by eligible residents who have qualifying children under the age of 17. A refundable credit means families can receive the credit even if they owe little or no New York State income tax.
Starting with tax year 2025, the credit has been enhanced to provide higher payments per child and increased support for families with older children in future years. The credit is administered by the and is claimed when filing a New York State income tax return.
Key highlights of the expanded credit include
- Higher credit amounts beginning in tax year 2025
- Increased benefits for children ages four through sixteen starting in 2026
- Refundable structure ensuring broader access for low and moderate income families
- Faster refunds through electronic payment methods since paper check refunds are discontinued
Who Qualifies for the Credit
Eligibility for the Empire State Child Credit is based on residency, filing status, and the presence of qualifying children. Taxpayers must meet all required conditions to claim the credit.
To qualify, you must
- Be a full year New York State resident
- File a New York State income tax return for the applicable tax year
- Have at least one qualifying child who is under age 17 on December 31 of the tax year
- Claim the credit using Form IT 213
- Provide valid identification numbers for yourself and each qualifying child
A qualifying child generally must meet age, relationship, residency, and support requirements consistent with New York State tax rules.
Credit Amounts by Child Age and Tax Year
The amount of the Empire State Child Credit depends on the child’s age and the tax year being claimed. The state has structured the credit to provide stronger support for very young children and to increase benefits for older children in future years.
The following table outlines the credit amounts by tax year and age group
| Tax Year | Child Age | Credit Amount Per Child | Return Filed |
|---|---|---|---|
| 2025 | Under 4 years old | $1,000 | 2026 |
| 2025 | Age 4 to under 17 | $330 | 2026 |
| 2026 | Under 4 years old | $1,000 | 2027 |
| 2026 | Age 4 to under 17 | $500 | 2027 |
| 2027 | Under 4 years old | $1,000 | 2028 |
| 2027 | Age 4 to under 17 | $500 | 2028 |
Families with multiple children can receive these amounts for each qualifying child, subject to income phase out rules.
Income Limits and Phase Out Rules
The Empire State Child Credit is subject to income based reductions. As household income increases beyond certain thresholds, the credit amount is gradually reduced.
The credit is reduced by $16.50 for every $1,000 that your federal adjusted gross income exceeds the threshold for your filing status.
Income thresholds by filing status are
- Married filing jointly $110,000
- Single $75,000
- Head of household $75,000
- Qualifying surviving spouse $75,000
- Married filing separately $55,000
Once income exceeds the threshold, the reduction is applied incrementally until the credit is fully phased out. Taxpayers near these limits should calculate carefully to estimate the final credit amount.
How to Claim the Empire State Child Credit
Claiming the credit requires proper filing and accurate documentation. Missing forms or incorrect information can delay refunds or reduce the credit amount.
Steps to claim the credit include
- File your New York State income tax return for the applicable tax year
- Complete and attach Form IT 213 Claim for Empire State Child Credit
- Ensure all qualifying children are listed correctly
- Provide valid Social Security numbers or Individual Taxpayer Identification Numbers for yourself and each child
- Choose direct deposit or debit card for refund delivery since paper check refunds are discontinued
Electronic filing combined with direct deposit is the fastest way to receive your refund and reduces the risk of processing delays.
Refund Timing and Important Considerations
The Empire State Child Credit is claimed with your annual New York State tax return, and refunds are typically issued after the return is processed. Because the credit is refundable, many families will receive it as part of their tax refund rather than as a reduction of tax owed.
Important points to keep in mind
- Tax year 2025 credits are claimed on returns filed in 2026
- Refund timing depends on filing method and accuracy of the return
- Electronic filing generally results in faster processing
- Refunds are issued electronically since paper check refunds are discontinued
- Errors in Form IT 213 or missing identification numbers can cause delays
Planning ahead by gathering documents early and filing electronically can help families receive their refunds more quickly and with fewer issues.
The expanded Empire State Child Credit represents a meaningful increase in support for New York families, especially those with young children and moderate incomes. By understanding eligibility rules, credit amounts, and filing requirements, taxpayers can ensure they receive the full benefit available to them under the updated program.