The state of New York could mark a before and after for thousands of families with children thanks to a proposal that seeks to strengthen the child tax credit. Gov. Kathy Hochul has unveiled a plan that could provide up to $1,000 for each child under age 4 and up to $500 for those ages 4 to 16, offering significant financial relief from the rising costs of parenting.
New York’s current child tax credit provides a maximum of $330 per child, making this proposal the largest expansion of the benefit in state history. “From grocery shopping to baby strollers to children’s clothing, the cost of living and raising a family is still too high,” Hochul said in a statement. “As New York’s first mother governor, I know how difficult it can be for parents to make ends meet.”
Child Tax Credit: A proposal ready to be approved
If this proposal is approved, the impact will be considerable. The average credit for families will increase from $472 to $943, according to official estimates. A family of four with one child under 4 years old and one school-age child, and an annual income of up to $110,000, could receive up to $1,500 a year, which is almost $1,000 more than under the current program.
Additionally, families with higher incomes could also benefit. A family of four with an income of up to $170,000 would receive more than $500 annually, a significant change since they currently do not qualify for the credit.
Number of families benefited throughout the state
The credit expansion is designed to benefit a total of 1.6 million families in New York, covering both urban and rural areas, as detailed in the following list (Area, number of families, and number of children, respectively):
- New York City
- 740,000 families
- 1.2 Million children
- Long Island
- 215,000 families
- 355,000 children
- Mid-Hudson
- 180,000 families
- 330,000 children
- Western New York
- 118,000 families
- 207,000 children
- Finger Lakes
- 104,000 families
- 180,000 children
- Capital Region
- 86,000 families
- 145,000 children
- Central New York
- 67,000 families
- 116,000 children
- Southern Tier
- 51,000 families
- 89,000 children
- Mohawk Valley
- 43,500 families
- 76,500 children
- North Country
- 35,000 families
- 61,000 children
Statistics of the impact of the child tax credits in New York
The Child Tax Credit in New York has been a key tool in supporting working families since its implementation in 2006. Originally, the credit offered up to $100 per child, but was gradually adjusted, peaking at $330 in 2014, a figure that It hasn’t changed since then. However, studies show that the cost of living in New York has increased by more than 20% in the last decade, leaving many families in a vulnerable financial position.
At the state level, approximately 1.3 million families have received this benefit in the last five years, which represents a significant economic impact on households. According to data from the New York Department of Taxation, in 2021, more than 70% of beneficiaries reported income less than $75,000 annually, highlighting the importance of the credit for low- and middle-income families.
Additionally, a recent study found that the child tax credit has reduced child poverty by 12% statewide, especially in urban areas like New York and Buffalo. These numbers underscore the need to update the program to address current financial challenges and expand its reach to more households.