New York families can expect a financial boost in 2025 thanks to a new tax credit expansion signed into law by Governor Kathy Hochul. The state is investing over $2 billion this year to support families, with the biggest benefit aimed at those with young children.
What’s Changing in 2025?
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Starting with the 2025 tax year, eligible families will receive:
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$1,000 tax credit for each child under the age of 4
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$500 tax credit for each child aged 4 to 16
These are the highest child tax credit amounts in New York State history.
When Will Families Receive This Money?
The tax credit will be applied when families file their 2025 state taxes in 2026. It’s not an immediate cash payout, but rather a credit that will reduce the amount of tax owed or increase your tax refund.
Who Qualifies?
The credit is income-based, so not every family will receive the full amount. Details on eligibility thresholds are available on the New York State tax website.
Why This Matters
The goal of this expanded Child Tax Credit is to help reduce childhood poverty across the state. Governor Hochul announced the measure as part of a broader effort to support working families and improve economic outcomes for children.
If you have children and live in New York State, it’s a good time to review your eligibility and start preparing for the 2025 tax season.
