How to Claim the New York Child Tax Credit
This guide explains New York's refundable child tax credit, a state benefit that can reduce your tax liability or provide a payment directly to your family.
The New York State Child Tax Credit, officially named the Empire State Child Credit, is a tax benefit for qualifying residents with children. It is designed to lower a household’s state tax bill and provide direct financial assistance, helping to ease the financial costs of raising a family. This credit is separate from the federal Child Tax Credit and is refundable, which can result in a payment even if no state taxes are owed.
Eligibility for the NY Child Tax Credit
To qualify for the Empire State Child Credit, the taxpayer must be a New York State resident for the entire year or a part-year resident who lived in the state for a portion of the tax year. This residency requirement determines the taxpayer’s obligation to file a New York State income tax return, such as Form IT-201 for full-year residents.
A central requirement is that the taxpayer must first be eligible to claim the federal Child Tax Credit or the federal Credit for Other Dependents for the same child. This federal eligibility acts as a gateway to qualifying for the New York State credit. The child in question must have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to be claimed.
A qualifying child must be under the age of 17 as of the last day of the tax year, December 31. The child must also meet relationship, residency, and support tests. This means they must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of them, and must have lived with you for more than half of the year.
Eligibility is subject to income limitations based on New York adjusted gross income (NYAGI), and the credit amount can be reduced for higher-income households. For the full credit, NYAGI must be $110,000 or less for those married filing jointly, $75,000 or less for single filers or heads of household, and $55,000 or less for those married filing separately.
Calculating Your Credit Amount
The Empire State Child Credit is calculated using a “greater of” formula to provide the maximum benefit. The credit is the larger of two amounts: either 33% of the federal Child Tax Credit you can claim or a set dollar amount per child.
For the 2025 tax year, the set amount is $1,000 for each qualifying child under the age of four and $330 for each qualifying child between the ages of four and seventeen. The amount for children aged four to seventeen is scheduled to increase to $500 in 2026.
A key feature of the Empire State Child Credit is its refundability. A refundable credit means that if the calculated credit amount is more than the total New York State income tax you owe, you will receive the difference as a direct payment. For example, if your credit is $1,000 and your state tax liability is $200, you would eliminate your tax bill and receive an $800 refund. Additionally, the credit has been expanded to eliminate any income phase-in, meaning the lowest-income families are eligible for the full credit amount. This structure is beneficial for lower-income families who may not have a large tax liability.
Required Information and Forms
Before you can claim the Empire State Child Credit, you must gather specific pieces of personal and financial information. You will need the full name and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for each qualifying child. You will also need your New York adjusted gross income (NYAGI) and the exact amount of the federal Child Tax Credit or Additional Child Tax Credit you claimed on your federal tax return.
The credit is claimed using Form IT-213, Claim for Empire State Child Credit. This form is used for calculating the credit and must be submitted with your annual state tax return. Taxpayers can download the form and its instructions from the New York State Department of Taxation and Finance website.
Completing Form IT-213 involves listing each qualifying child’s name and SSN or ITIN. You will then enter figures from your federal return. The form’s worksheet uses this information to determine your final credit amount based on the “greater of” the two calculation methods.
How to Claim the Credit
After completing Form IT-213, you must attach it to your annual New York State income tax return, such as Form IT-201 for full-year residents. The credit is not claimed separately but is an integral part of your state tax filing.
Taxpayers have two methods for submitting their return. The most common and encouraged method is electronic filing, or e-filing, through an approved tax software program. The software will automatically include Form IT-213 if you are eligible and attach it to your electronic submission. Alternatively, you can print and mail the physical paper forms to the address specified in the form instructions.
Individuals who are not otherwise required to file a New York tax return but are eligible for the credit must still file a state return with Form IT-213 to claim their payment. This is because the credit is refundable.