Do You Need Form IT-213 to Claim the New York State Credit?

New York State offers various tax credits to reduce the financial burden on eligible taxpayers, and Form IT-213 is used to claim the Empire State child credit. This credit can lower state tax liability or increase refunds for qualifying families with children.

Understanding whether you qualify depends on residency status, income level, and dependent eligibility. Properly completing and submitting the form ensures you receive the benefits you are entitled to.

Eligibility Conditions

Qualifying for the Empire State child credit is based on residency, dependents, and income level. Each factor determines eligibility and the credit amount.

Residency

You must have been a full-year or part-year resident of New York State during the tax year. Full-year residents live in the state for all 12 months, while part-year residents either moved into or out of New York during the year. Nonresidents are ineligible.

For part-year residents, the credit is prorated based on time spent in New York. If you lived in multiple states, you may need to file a part-year resident return (Form IT-203) and calculate your credit accordingly. Keeping records such as lease agreements, utility bills, or bank statements can help verify residency.

Dependents

The child must be under 17 at the end of the tax year and listed as a dependent on your federal return. They must be related to you—such as a son, daughter, stepchild, or eligible foster child—and must have lived with you for more than half the year.

A valid Social Security number or Individual Taxpayer Identification Number (ITIN) is required. If a child lacks proper identification, they cannot be claimed for this credit. Only one taxpayer can claim the child, so if parents file separately, they must determine who will take the credit.

Income Threshold

Eligibility is based on modified federal adjusted gross income (FAGI). The credit is calculated as a percentage of the federal child tax credit (CTC) or a flat amount per child, depending on income.

Higher-income families may receive a reduced credit. While New York does not impose a strict income cap, the amount varies based on earnings and filing status. Reviewing your FAGI on your New York return (Form IT-201 or IT-203) helps determine if you qualify for the full or partial credit. Keeping track of wages, self-employment income, and investment earnings ensures accurate reporting.

How to Calculate the Credit

The Empire State child credit is determined by one of two methods, depending on federal child tax credit (CTC) eligibility. If you qualified for the federal CTC, the New York credit equals 33% of that amount. If you did not qualify but meet state requirements, the credit is a flat amount per child based on income.

For those using the percentage-based method, the calculation is straightforward. If you received a $2,000 federal CTC for a qualifying child, New York’s credit would be $660 per child (33% of $2,000).

For those who did not receive the federal CTC, New York applies a tiered benefit structure. The minimum credit is $100 per child, but the amount varies based on modified federal adjusted gross income (FAGI). Lower-income families typically receive a higher credit, while higher-income households may see a reduced benefit. The exact calculation is outlined in the state’s tax code and adjusts annually for inflation.

Completing the Form

Filling out Form IT-213 correctly ensures you receive the proper credit amount without delays. The form requires personal details, including your name, Social Security number, and filing status, which must match your New York State tax return.

The next section requires information on qualifying children. You must enter each child’s full name, Social Security number, and date of birth exactly as they appear on official records. Errors in this section, such as typos or incorrect Social Security numbers, can cause a rejected claim.

The final section calculates the credit. If you qualified for the federal child tax credit, you enter the New York percentage of that amount. If not, you use the state’s alternative method. Following the form’s instructions carefully ensures you claim the correct amount.

Supporting Documentation

The New York State Department of Taxation and Finance may request verification. Proof of the child’s residency can include school records, medical statements, or government correspondence showing the child’s name and address.

Income verification is also necessary. Keep copies of W-2s, 1099 forms, and other earnings statements. If self-employed, maintain profit and loss statements, bank records, and business expense receipts. Discrepancies between reported income and official records may result in a reduced or denied credit.

For separated or divorced parents, additional documentation may be required. A court-ordered custody agreement or Form 8332 (Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent) can clarify which parent is eligible to claim the credit. If both parents claim the same child, processing delays or audits may occur.

Submission Requirements

Once completed, Form IT-213 must be submitted with your New York State income tax return. If filing electronically, tax software typically includes the form if you qualify, ensuring accuracy. E-filing speeds up processing and reduces errors.

For paper filers, attach Form IT-213 to Form IT-201 (Resident Income Tax Return) or Form IT-203 (Nonresident and Part-Year Resident Income Tax Return), depending on residency status. Mail the completed forms to the appropriate New York State Tax Department address listed in the instructions. Ensure all required documentation is included and that the form is signed. Keeping a copy for your records is advisable.

Amending the Return if Needed

If you discover an error or failed to claim the Empire State child credit, you may need to file an amended return using Form IT-201-X (Amended Resident Income Tax Return) or Form IT-203-X (Amended Nonresident and Part-Year Resident Income Tax Return).

When filing an amendment, provide a clear explanation of the changes and include supporting documentation. If the adjustment results in a higher refund, processing may take longer as amended returns undergo additional review. If the correction leads to a higher tax liability, paying any additional amount owed promptly can help avoid interest and penalties. Keeping records of any changes ensures you can substantiate your claim if questioned by tax authorities.