Child Tax Credit 2024 – Which State Will Soon Send Up to $330 Per Child?

The State of New York has introduced a significant financial relief initiative for families, offering up to $330 per child through the Empire State Child Tax Credit (ESCTC). This program, funded by a $350 million allocation from Governor Kathy Hochul, aims to ease the burden of rising childcare costs for families with children under 17 years old.

Eligibility

To qualify for the ESCTC, several key criteria must be met:

• Residency Requirement: Applicants must have lived in New York State for the entire year or be married to a full-year resident.
• Federal Child Tax Credit Criteria: Eligibility hinges on meeting the federal child tax credit qualifications based on 2023 guidelines.
• Empire State Child Credit: Claimants must have received at least $100 from the Empire State Child Credit for 2023.
• Tax Filing: Taxes for 2023 must be filed by April 15, 2024, unless a valid reason for late filing is provided.

Payment Structure

The amount that families can claim from the ESCTC varies based on their federal adjusted gross income (AGI) as reported on their 2023 tax returns. The federal AGI, determined by the IRS, is your gross income minus specific deductions such as contributions to a traditional IRA, student loan interest, and certain business expenses.

The payout is structured as follows:

• Up to $10,000 Federal AGI: Families can claim the full $330 per child.
• $10,001 to $25,000 Federal AGI: Families are eligible for 75% of the $330, which amounts to $247.50 per child.
• $25,001 to $50,000 Federal AGI: Families can claim 50% of the $330, equating to $165 per child.
• Above $50,000 Federal AGI: Families are eligible for 25% of the $330, which totals $82.50 per child.

This sliding scale ensures that the most significant support is provided to families with the greatest financial need, while still offering some assistance to those with higher incomes.

Purpose of the ESCTC

The Empire State Child Tax Credit is designed to help families cope with the escalating costs associated with raising children. With the cost of childcare and other essential expenses on the rise, this tax credit provides much-needed relief to New York families, ensuring that they can better manage their financial obligations while meeting their children’s needs.

Filing and Claiming

To benefit from the ESCTC, families need to ensure that their 2023 taxes are filed by the deadline. The ESCTC will be calculated based on the information provided in the tax return, so it’s crucial to have an accurate report of income and deductions. For those who meet the criteria, this credit can provide a valuable financial boost.

The Empire State Child Tax Credit reflects New York’s commitment to supporting its residents, particularly in a time when the cost of living continues to climb. By setting aside substantial funds for this initiative, the state is taking concrete steps to alleviate some of the financial pressures on families.

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