Child tax credits expanded for millions of Americans

The Empire State Child Credit (ESCC) has been expanded for families in New York, Governor Kathy Hochul has announced.

The changes, approved by the state legislature, target families with young children while broadening eligibility beyond those previously reached by the program.

“The Empire State Child Credit delivers a vital financial boost to New York families,” Governor Hochul, a Democrat, said in a news release issued on Monday. “Now, after the largest expansion of the credit in New York history, more New Yorkers have access to the credit than ever, which will put money directly in families’ pockets and help make our state more affordable for millions of recipients.”

A Larger Credit for Younger Children

Beginning with the 2026 filing season, eligible households can receive up to $1,000 for each child under the age of 4, a substantial increase from previous levels. For children between 4 and 16 years old, the credit would be worth up to $330 per child.

The following year, the benefit grows again. For tax year 2026, families with children ages 4 through 16 could claim as much as $500 per child, while the $1,000 maximum for children under 4 remains in place.

Reaching Low- and Middle-Income Families

The state has eliminated the minimum income requirement, sometimes referred to as a phase-in, which previously prevented the poorest families from receiving the full value of the credit. Under the new rules, those families can now receive the entire amount as a refund.

The eligibility has also been extended up the income scale. While households filing jointly can still receive the full credit with incomes up to $110,000, adjustments to the phase-out mean families that once earned too much to qualify may now receive partial benefits. State officials note that a family of four earning $170,000, with one child under 4 and another over 4, could receive more than $500 a year.

Overall, the reforms are expected to almost double the average credit, from $472 to $943, according to Hochul’s office.

Potential Impact and Eligibility

Independent analysts estimate that if all eligible families claim the expanded ESCC, child poverty in New York could fall by more than 8 percent.

To qualify in 2026, filers must be full-year New York residents, have at least one qualifying child under 17 by the end of 2025 and file a state income tax return with a valid Social Security number or Individual Taxpayer Identification Number for themselves and each child claimed. Maximum benefits apply to incomes below $75,000 for single or head-of-household filers and $110,000 for married couples filing jointly.

Federal Child Tax Credit

The state expansion comes at the same time as changes at the federal level. Starting in tax year 2025, the federal Child Tax Credit rises to $2,200 per qualifying child under 17. The credit is partially refundable, allowing families to receive up to $1,700 back if the credit exceeds what they owe in taxes.

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