Families are about to receive some great news with the introduction of a new child tax credit for new York. that could change the financial future for many parents across the state. Governor Kathy Hochul has announced a proposal that aims to increase the child tax credit offering substantial relief to families struggling with the rising costs of raising children.
Under this new plan families could receive up to $1000 for each child under the age of 4 and up to $500 for children ages 4 to 16. This new proposal would significantly increase the current child tax credit which provides only $330 per child. If passed this would mark the largest expansion of the child tax credit in New York state’s history helping to make life a little easier for parents.
Governor Hochul who is New York’s first ever mother governor shared her thoughts on the new proposal saying “From grocery shopping to baby strollers to children’s clothing, the cost of living and raising a family is still too high. I know how difficult it can be for parents to make ends meet.”
If you’re interested in learning more about this, check out How to Claim the Child Tax Credit for Children Living Abroad?
Table of Contents
What the New Proposal Means for Families
The new proposal promises to make a real difference in the lives of many families. For instance the average child tax credit could jump from $472 to $943 doubling the current benefit for many. For a family of four with one child under 4 years old and another school age child the new credit could mean up to $1500 per year that is almost $1000 more than what they currently receive.
Even families with higher incomes who might not have qualified for the child tax credit before will now be able to benefit. A family of four earning up to $170,000 would receive more than $500 annually under this new plan.
How Many Families Will Benefit?
The new child tax credit proposal is expected to help a total of 1.6 million families across New York State. This includes families from both urban and rural areas. Here’s a breakdown of how many families and children could benefit in different parts of the state:
| Area | Number of Families | Number of Children |
| New York City | 740,000 | 1.2 million |
| Long Island | 215,000 | 355,000 |
| Mid-Hudson | 180,000 | 330,000 |
| Western New York | 118,000 | 207,000 |
| Finger Lakes | 104,000 | 180,000 |
| Capital Region | 86,000 | 145,000 |
| Central New York | 67,000 | 116,000 |
| Southern Tier | 51,000 | 89,000 |
| Mohawk Valley | 43,500 | 76,500 |
| North Country | 35,000 | 61,000 |
The History and Impact of the Child Tax Credit in New York
The child tax credit has been a lifeline for working families in New York since it was introduced in 2006. The credit offered only $100 per child but it increased over the years. By 2014 it peaked at $330 per child. However the credit has not changed since then even though the cost of living in New York has gone up by more than 20% over the past decade.
Over the last five years around 1.3 million families have benefited from the child tax credit. The credit has been important for families with lower incomes. A report from the New York Department of Taxation says that in 2021 more than 70% of families who received the child tax credit earned less than $75,000 per year.
The child tax credit has proven to be an effective tool in reducing child poverty in New York. A recent study showed that it helped reduce child poverty by 12% with the biggest improvements seen in cities like New York.
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FAQs
1. What is the new child tax credit proposal in New York?
The proposal aims to provide up to $1,000 for each child under age 4 and up to $500 for children ages 4 to 16. This would significantly increase the current child tax credit.
2. How many families will benefit from this plan?
Around 1.6 million families across New York State will benefit from the expanded child tax credit.
3. Who qualifies for the new child tax credit?
Families with children under 16 will qualify for the expanded credit, with higher amounts for children under 4 years old. Families with incomes up to $170,000 could benefit, which includes many families that didn’t qualify before.
4. What impact has the child tax credit had so far?
The credit has helped reduce child poverty by 12% in New York, especially in urban areas like New York City and Buffalo.
5. When will the new child tax credit go into effect?
If approved, the new credit is expected to begin soon, but the exact date will depend on the legislative process.
Final Words
The proposal for a bigger child tax credit in New York is a major step forward in helping families deal with the high costs of raising children. By offering more money to families with children, New York is providing real support to help parents meet their basic needs and reduce financial stress. If passed, this expansion of the child tax credit will benefit up to 1.6 million families across the state, making it one of the largest improvements to family support in New York’s history