New York State Governor Kathy Hochul has announced that the state has started distributing $350 million in supplemental payments to low- and moderate-income families through the Empire State Child Tax Credit program.
This new payment aims to provide financial relief to families across New York who are already benefiting from the Child Tax Credit. The first round of checks has been sent, and over the next two weeks, more than one million eligible families will receive up to $330 per child without needing to apply for it.
Child Tax Credit
The Empire State Child Tax Credit is a refundable tax credit designed to support low- and moderate-income families with children. It’s part of a broader effort to ease the financial burden on working families by offering them a tax break based on their income and the number of children they have.
Recently, the program was expanded to include children under the age of four, benefiting an additional 600,000 families annually. This expansion is particularly impactful, as it extends financial assistance to families with very young children who often face higher childcare costs.
Payment Benefits
The supplemental payments come from an agreement between Governor Hochul and state legislative leaders, aimed at providing additional financial relief to families already receiving the Empire State Child Credit. Depending on income, families can receive between 25% and 100% of the credit they claimed in 2023, with lower-income families getting the highest payments. For some, this could mean an extra $330 per child, which is especially helpful during the back-to-school season when expenses often spike.
Quick Distribution
These payments are being distributed rapidly, with over 100,000 checks going out each day. Governor Hochul’s team has assured that all eligible families will receive their checks on time. The process is automatic—families who received at least $100 from the Empire State Child Credit on their 2023 tax returns will automatically get this supplemental payment. This approach eliminates the need for families to navigate additional application processes, ensuring that the relief reaches them efficiently.
Impact on Family Finances
For many families, these supplemental payments come at a critical time. The back-to-school period brings increased expenses for things like school supplies, clothing, and other essentials. This extra money can make a significant difference in easing these financial pressures.
The broader goal of the Child Tax Credit is to provide substantial financial relief to working families, and these recent payments are part of a larger trend. Over the last two years, New York State has distributed more than $2.6 billion through various programs, including property tax credits, supplemental earned income tax credits, and gas tax holidays.
Ongoing Support
In addition to the supplemental payments, Governor Hochul has launched a digital portal to help families access affordable childcare through the New York State Child Care Assistance Program (CCAP). This program covers more than 90% of the cost of childcare for most eligible families, with many four-person households paying no more than $15 per week. The state has also committed $7 billion over four years to expand the childcare assistance program, making childcare more accessible and affordable for a larger number of families.
Future Adjustments
Looking ahead, further adjustments to the Child Tax Credit are anticipated in 2025, primarily due to changes in the payment schedule related to holidays and weekends. Families can expect these payments to be made in the final days of the previous month, which requires some financial planning to manage income effectively. To get the most out of these benefits, families should consider developing a monthly budget, creating an emergency fund, consulting with a financial advisor, and staying informed about any updates to the payment schedule.
With the new supplemental payments and other forms of assistance, the Empire State Child Tax Credit continues to be a vital resource for low- and moderate-income families in New York. Proper planning and smart financial management can help families maximize the benefits of these payments, providing stability during times of need, such as the back-to-school season.
FAQs
How do I get the Empire State Child Tax Credit?
It’s automatic if you received $100 from it on your 2023 taxes.
How much is the supplemental child tax payment?
Up to $330 per child, depending on income.
When will the supplemental checks arrive?
Within two weeks, according to the distribution schedule.
Do I need to apply for the new payment?
No, it’s automatically provided based on 2023 tax returns.
What is the Empire State Child Tax Credit?
It’s a refundable tax credit for low- and moderate-income families.
