Raising a child in New York is not cheap. From diapers to school tuition, expenses add up quickly, and many families feel the financial pressure. Governor Kathy Hochul has presented a proposal to expand the child tax credit, a measure aimed at relieving that burden.
If approved, this proposal would increase the current assistance of $330 per child to a maximum of $1,000 for children under 4 years old and $500 for those from 4 to 16 years old. The change is significant. According to official calculations, the average assistance families receive could rise from $472 a year to $943 a year.
Why is it necessary to expand the child tax credit?
Life in New York is expensive. Very expensive. And for families with young children, essential expenses like food or clothing can become a daily challenge. Hochul expressed it clearly: “I know how hard it is to make ends meet with kids at home. As a mother and governor, I want working families to feel some relief.”
This proposal, in addition to being a gesture towards the most vulnerable families, aims to make New York a more affordable place to raise children.
How will this increase be applied?
The program is designed to benefit a wide range of families, from those with low incomes to those in the upper-middle class. For example:
- A family with two children, one of whom is preschool-aged, and with an income of up to $110,000 a year, could receive $1,500 a year in tax credits. This represents an increase of nearly $1,000 over the current program.
- Even families with higher incomes, like a couple earning $170,000 a year, could benefit. They would receive more than $500, something that was not possible under the current rules.
A gradual implementation schedule
The credit expansion will not happen all at once. It will be implemented in phases over a two-year period:
- Fiscal Year 2025: Families with children under 4 years old will be the first to receive the expanded $1,000 credit.
- Fiscal Year 2026: Households with children aged 4 to 16 will be able to access the $500 credit.
Additionally, this assistance will be refundable. What does this mean? That if the credit exceeds the taxes you owe, you will receive the difference as a direct refund. In other words, you won’t lose the money, even if your taxes are low.
What impact will it have on families?
For many families, this measure will be a lifeline. Let’s think about a household that currently receives $330 per child. With this increase, those extra funds could go toward important needs: school supplies, winter clothes, or even saving for unexpected medical expenses.
Moreover, the fact that it is refundable offers additional security. Families facing economic difficulties, such as a layoff or a medical emergency, will be able to rely on that extra money as a backup.
A step toward a more affordable future
New York is sending a clear message with this proposal: the well-being of families is a priority. Expanding the child tax credit not only aims to help cover daily costs but also to create a more sustainable environment for raising children in the state.
Governor Hochul has described it as part of a larger effort to make New York a more accessible place for everyone. This tax credit is not a magical solution, but it is a step in the right direction for many families who need it.
The potential expansion of the child tax credit in New York could significantly impact thousands of households. If approved, families will have more resources to face the financial challenges of raising children.
Stay informed about upcoming updates and make sure to take advantage of this assistance if you meet the requirements. Measures such as these can make a significant difference between a tight family budget and one that is more manageable.
