What are the major changes to the Empire State Child Credit for tax year 2025?

Starting with your 2025 tax return (which you will file in 2026), New York State has significantly expanded the credit to make it more beneficial for families: Higher Max Benefits: You can now receive up to $1,000 per child under the age of 4, and up to $330 per child ages 4 through 16. No Minimum Income Needed: The credit is now fully refundable with no minimum income requirement. The old rules that phased the credit in based on your earnings have been eliminated, meaning you can get the full refund even if you owe no state income tax. Expanded Phase-Out Rules: While the income thresholds for the full credit stay the same (e.g., $110,000 for married filing jointly), the credit now reduces much more gradually ($16.50 for every $1,000 of income over the limit). This slower phase-out allows more middle-income families to qualify for a partial credit.

Empire State Child Credit (ESCC) Expansion: FAQs

Home > Empire State Child Credit (ESCC) Expansion: FAQs

Frequently Asked Questions

Starting with your 2025 tax return (which you will file in 2026), New York State has significantly expanded the credit to make it more beneficial for families:

Higher Max Benefits: You can now receive up to $1,000 per child under the age of 4, and up to $330 per child ages 4 through 16.
No Minimum Income Needed: The credit is now fully refundable with no minimum income requirement. The old rules that phased the credit in based on your earnings have been eliminated, meaning you can get the full refund even if you owe no state income tax.
Expanded Phase-Out Rules: While the income thresholds for the full credit stay the same (e.g., $110,000 for married filing jointly), the credit now reduces much more gradually ($16.50 for every $1,000 of income over the limit). This slower phase-out allows more middle-income families to qualify for a partial credit.

Additional increases are already scheduled for the following year. For tax year 2026 (returns filed in 2027), the credit for children under age 4 will stay at a maximum of $1,000 per child. However, the maximum credit for older children (ages 4 through 16) will increase from $330 to $500 per child.

Yes. Because the credit is fully refundable, you can receive the entire amount as a refund even if you owe little to no state income tax. However, the state cannot issue the payment automatically. To claim the credit, you must file a New York State income tax return using Form IT-213, and you must provide a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for yourself and each qualifying child claimed as a dependent.