The Empire State Child Tax Credit (ESCTC) is a scheme that helps New York families with kids younger than 17 by giving them extra money. The rising prices of child care are a problem for many families across the state, and this project aims to fix it. The ESCTC hopes to help these families a lot with their money thanks to a $350 million grant from Governor Kathy Hochul.
These families can get up to $330 for each child under 17 through the ESCTC. The family’s federal adjusted gross income (AGI) from their 2023 tax returns is used to figure out the exact amount of the credit.
How the Empire State Child Tax Credit works
The Internal Revenue Service (IRS) figures out a person’s adjusted gross income (AGI), which is their total income after certain reductions. Some of these deductions are donations to a traditional IRA, interest on student loans, tuition and fees, and some business costs. Figuring out the AGI is very important because it has a direct effect on how much can be claimed through the ESCTC.
Depending on the AGI, the credit amount varies:
- AGI up to $10,000: Families can claim the full $330 per child.
- AGI between $10,001 and $25,000: Families can claim 75% of the total amount, which is $247.50.
- AGI between $25,001 and $50,000: Families can claim 50% of the total amount, or $165.
- AGI above $50,000: Families can claim 25% of the total amount, or $82.50.
Requirements for accessing the ESCTC
People who want to get the Empire State Child Tax Credit must meet certain requirements. If they are married to someone who meets this requirement, they must have lived in New York State for the whole previous fiscal year. Besides that, they need to meet the government requirements for the child tax credit for the tax year 2023.
People who want to apply must also have claimed the Empire State Child Credit for the 2023 tax year and gotten at least $100 from the fund. If you don’t have a good reason, you have until April 15, 2024, to file your tax forms.
Benefits of the ESCTC for families
The Empire State Child Tax Credit helps a lot of New York families with their money. The cost of living keeps going up, so this help helps parents pay for important child care costs. Parents can work or go to school without worrying about their kids because they know they are in good hands.
The process of applying for the ESCTC is easy. Those who want to apply must make sure they meet all the standards and send in their tax returns on time. Talking to a tax expert can help you get the most out of the credit and make sure you meet all the requirements.
Impact of the ESCTC on New York’s community
The Empire State Child Tax Credit has effects that go beyond the earnings of individual families. Making sure that all of New York’s kids can get good childcare through this program improves the city as a whole. The program makes things more stable and helps the local economy grow by making it easier for families to pay their bills.
The future of the child tax credit in New York
With Governor Kathy Hochul’s big investment, the child tax credit in New York looks like it will have a bright future. It is expected that this program will continue to change and adapt to meet the needs of families, giving them important help during uncertain economic times.
The Empire State Child Tax Credit is an important program that helps New York families directly with money. This program not only helps parents with their finances by paying for child care, but it also improves the health and happiness of children and the community as a whole. With the cost of living going up all the time, programs like the ESCTC are very important to make sure that all families can do well.