New York state has initiated the distribution of extra child tax credit checks, a move that is set to benefit many families across the state. The initiative is part of a broader effort to provide financial relief to families with children under 17. Funded by $350 million allocated in this year's state budget, these checks aim to ease the burden of childcare expenses for eligible families.
Governor Kathy Hochul announced the program, emphasizing its importance in addressing the cost of living for working parents. "I'll never stop fighting to address the cost of living for working parents," Hochul stated, reinforcing her commitment to supporting New Yorkers. This recent move is seen as part of her broader agenda to expand tax refunds and financial support for residents.
The Empire State Child Credit (ESCC) is a refundable tax break designed for full-year New York residents who have children under 17 and meet certain income thresholds. This means families can still claim part of this credit even if they do not owe any state taxes. The checks are being sent automatically to those who received an Empire State Child Credit of at least $100 on their 2023 tax returns, with no need for additional applications.
Eligibility for the ESCC requires that families must have filed their 2023 tax returns by the April 15, 2024 deadline or have a valid extension. Moreover, the family's income must meet specific criteria. For married couples filing jointly, the income threshold is $110,000 or less. For single, head of household, or qualifying surviving spouse, the limit is $75,000 or less, and for married individuals filing separately, the threshold is $55,000 or less.
The amount of the check each family receives is dependent on their federal adjusted gross income (AGI) from their 2023 tax return. The maximum payment is $330 per child, but the exact amount varies between 25% and 100% of the claimed child tax credit. For instance, families with a federal AGI of $10,000 or less will receive the full $330 per child. Those with a federal AGI between $10,000 and $25,000 will get 75% of the ESCC, those between $25,000 and $50,000 will receive 50%, and those with more than $50,000 will receive 25%.
To assist families in determining their eligibility and the exact amount they should expect, New York state has provided an interactive calculator on its Department of Taxation and Finance website. This tool aims to simplify the process and ensure that families can easily access the information they need.
The first round of these checks was mailed out on Monday, with more than 100,000 checks being sent daily over the next two weeks. This systematic approach ensures that eligible families receive their financial support promptly. The checks are a one-time disbursement, though there is speculation about whether a similar initiative could occur next year. For this to happen, the state budget would need to renew the funding for 2025.
Governor Hochul's administration has been proactive in addressing financial challenges faced by New Yorkers. Last summer, the state began requiring shoppers to show membership cards at self-service checkout registers to curb the use of shared membership cards. This initiative mirrors the proactive measures being taken with the child tax credit checks, reflecting the state's broader strategy to ensure fairness and financial support for its residents.
For more information on the status of the checks or to resolve any general tax-related questions, residents are encouraged to visit the New York State Department of Taxation and Finance website.
