Raising children in New York can be expensive, and families need all the financial help they can get.
That’s why New York State is launching an enhanced Child Tax Credit (CTC) in 2025, offering up to $1,000 per child under four years old and $500 per child aged 4 to 16.
This credit will be directly deposited into eligible households’ bank accounts or included in their state tax refund.
Understanding the eligibility requirements, income limits, payment schedule, and how to claim the credit will help families maximize their benefits.
Payment
The New York Child Tax Credit (CTC) for 2025 is designed to assist working families with the cost of raising children. The payment amount depends on the child’s age:
| Child’s Age | Maximum Credit Amount |
|---|---|
| Under 4 years old | Up to $1,000 per child |
| 4 to 16 years old | Up to $500 per child |
Payments will be issued through direct deposit or as part of state tax refunds. Families must file their 2025 New York State tax return to claim the benefit.
Eligibility
To qualify for the New York CTC in 2025, families must meet the following criteria:
1. Residency & Tax Filing Requirements
- You must be a New York State resident.
- You must file a New York State tax return.
- The child must be claimed as a dependent on your tax return.
2. Child Requirements
- The child must live with you for at least half the year.
- The child must be a U.S. citizen, national, or resident alien.
3. Income Limits
The amount you receive depends on your income. If your earnings exceed these thresholds, your credit amount may be reduced or eliminated:
| Filing Status | Income Limit |
|---|---|
| Married Filing Jointly | $110,000 |
| Single / Head of Household | $75,000 |
| Married Filing Separately | $55,000 |
Families with incomes below these limits will qualify for the full credit. Those above the threshold may receive a reduced amount.
Payment Schedule
The New York Child Tax Credit will be distributed in two phases:
- 2025 Tax Year: Families with children under 4 years old will receive up to $1,000 per child.
- 2026 Tax Year: Families with children aged 4 to 16 will receive up to $500 per child.
Payments will be sent out as part of New York State tax refunds, so families will receive them after filing their 2025 tax return in early 2026.
How to Claim the $1000 NY CTC Direct Deposit in 2025
To receive the New York Child Tax Credit, follow these steps:
1. File Your New York State Tax Return
- Even if you don’t owe taxes, you must file a return to claim the credit.
2. Provide Child Information
- Include your child’s Social Security Number (SSN) on your tax return.
3. Verify Income Eligibility
- Check that your income falls within the eligible range.
4. Choose Direct Deposit (Recommended)
- Select direct deposit when filing your return to get your payment faster.
How Does NY CTC Compare to the Federal Child Tax Credit?
| Feature | New York CTC (2025) | Federal CTC (2024) |
|---|---|---|
| Maximum Amount | $1,000 per child (under 4) | $2,000 per child |
| Age Limit | Up to 16 years old | Up to 17 years old |
| Refundable? | Yes | Partially Refundable |
| Income Limits | $110K (Married Jointly) | $400K (Married Jointly) |
While the Federal Child Tax Credit is available nationwide, the New York CTC is specifically for New York residents and provides higher benefits for younger children.
Expert Insights
Economists believe enhanced child tax credits play a significant role in reducing child poverty and helping families cover essential expenses.
“Providing direct financial support to families with young children can significantly improve child development and reduce economic stress,” says Dr. Laura Simpson, an economist at NYU.
Studies show that cash assistance to families results in better nutrition, improved education outcomes, and greater healthcare access for children.
The New York Child Tax Credit is a major step toward supporting families in the state. With up to $1,000 per child, this benefit can provide much-needed financial relief.
Families should ensure they meet the eligibility criteria and file their state tax return on time to receive their payments.
