Raising a child in New York is not inexpensive. From diapers to school tuition, expenses add up quickly, and many families struggle financially. Governor Kathy Hochul proposed expanding the child tax credit to alleviate the burden.
If approved, this proposal would increase the current assistance of $330 per child to a maximum of $1,000 for children under 4 and $500 for those aged 4-16. The change is significant. According to official calculations, the average amount of assistance that families receive could increase from $472 to $943 per year.
Why is it necessary to expand the child tax credit?
Living in New York is expensive. Extremely expensive.And for families with young children, basic necessities like food and clothing can become a daily challenge. Hochul stated clearly: “I understand how difficult it is to make ends meet with children at home. As a mother and governor, I want working families to feel relieved.
This proposal, in addition to benefiting the most vulnerable families, seeks to make New York a more affordable place to raise children.
How will this increase be applied?
The program is intended to benefit a diverse range of families, from low-income to upper-middle class. For example:
- A family with two children, one of whom is preschool-aged, and with an income of up to $110,000 a year, could receive $1,500 a year in tax credits. This represents an increase of nearly $1,000 over the current program.
- Even families with higher incomes, like a couple earning $170,000 a year, could benefit. They would receive more than $500, something that was not possible under the current rules.
:max_bytes(150000):strip_icc()/1-10-nychildtaxcredit-712d4bd0e61444d39ac746f94066c7aa.jpg)
A gradual implementation schedule
The credit expansion will not occur all at once. It will be implemented in stages over a two-year period.
- Fiscal Year 2025: Families with children under 4 years old will be the first to receive the expanded $1,000 credit.
- Fiscal Year 2026: Households with children aged 4 to 16 will be able to access the $500 credit.
Furthermore, the assistance will be refundable. What exactly does this mean? That if the credit exceeds the amount of taxes owed, you will receive a direct refund for the difference. In other words, you will not lose any money, even if your taxes are low.
What impact will it have on families?
This measure will provide vital support for many families. Consider a household with a current income of $330 per child. With this increase, those extra funds could be put toward important needs like school supplies, winter clothing, or even saving for unexpected medical expenses.
Furthermore, the fact that it is refundable provides added security. Families facing financial difficulties, such as a layoff or a medical emergency, will be able to rely on the extra funds as a safety net.
A step toward a more affordable future
With this proposal, New York sends a clear message that family well-being is a top priority. Expanding the child tax credit aims not only to help cover daily expenses, but also to create a more sustainable environment in which to raise children in the state.
Governor Hochul has described it as part of a larger effort to make New York more accessible for all. This tax credit is not a miracle cure, but it is a step in the right direction for many families who require it.
The potential expansion of New York’s child tax credit could have a significant impact on thousands of households. If approved, families will have more resources to cope with the financial challenges of raising children.
Stay informed about upcoming updates and take advantage of available assistance if you meet the requirements. These types of measures can mean the difference between a tight and manageable family budget.
Also See:- Social Security payment calendar in January 2025 learn how to manage it
