There’s one opportunity in particular that could put a surprising amount of money back in your family’s budget, even if you didn’t earn that much money in 2024. Whether you’re a parent juggling expenses or just trying to make ends meet, this little-known benefit might be exactly what you need: it’s the Child Tax Credit.
The Child Tax Credit allows you to claim up to $2,000 for each child under 17 years of age in 2024. Of that amount, up to $1,700 is refundable, meaning families can receive that money even if they don’t owe taxes. Under federal rules, “your family may be eligible even if you had no income or owed income taxes.”
Child and Dependent Care Credit in New York
In order to claim this credit, the minor must have a Social Security Number (SSN). Only one parent or guardian can claim the child, and anyone who has lived with the child for more than six months during the year has priority. This credit is not considered income, so it does not affect eligibility to receive public benefits, according to official specifications.
Requirements include income less than $200,000 for individuals or $400,000 for couples filing jointly. The claimed child must be a child, stepchild, adopted child, sibling, or descendant thereof (such as a grandson or nephew). You must also have lived with the filer for more than half the year within the US, and you must not have provided more than half of your own support.
New York residents can apply for this refundable credit if they paid child care expenses for children under age 4 in 2024. Federal adjusted gross income must not exceed $30,000, and they must qualify for the state credit. “You can apply for both state and municipal credit,” the regulations indicate.
The amount is equivalent to 75% of the New York state credit. Half-year residents can access a refundable portion. There are no additional SSN requirements for the minor, but the filer must use an ITIN or SSN.
This non-refundable credit applies to New York residents with federal adjusted gross income up to $12,500 (singles) or $22,500 (married). The amount varies depending on the claimed dependents and is calculated using the tables included in forms IT-201 or IT-360.1.
Those who are claimed as dependents on another return cannot access it. Married filing separately should review specific instructions. The credit ranges from $15 to amounts based on state formulas, with no refund option.
Application and documentation process
For the Child Tax Credit, the child’s SSN is required. Adoptions require an ATIN, while filers without SSN use an ITIN. Forms 1040 or 1040-SR include sections for claiming the credit, with deadlines aligned to the federal tax season.
In New York, the Child and Dependent Care Credit requires you to attach proof of child care expenses, such as receipts from daycare or caregivers. Form IT-216 is used to calculate the state amount, which is then transferred to the municipal return.
For the New York family credit, taxpayers must complete Form IT-201 (residents) or IT-203 (non-residents). The amounts are determined by tables published by the state Department of Taxation and Finance.