In 2025, New York State introduced significant changes to its child tax credit program, aiming to provide greater financial relief to families.
However, these new conditions have led to some applications being refused. Here’s what you need to know about the expanded credit and the reasons behind these refusals.
Expanded Credit Details
Governor Kathy Hochul’s proposal marked the largest increase in New York’s child tax credit history. The new plan offers up to $1,000 per child under age four and $500 per child aged four to sixteen, a substantial rise from the previous maximum of $330 per child.
This expansion is set to benefit approximately 1.6 million families and 2.75 million children across the state.
Eligibility Criteria
To qualify for the expanded credit, applicants must meet the following conditions:
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Residency: Must be a New York State resident for all or part of 2025.
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Child’s Age: The child must be under 17 by December 31, 2025.
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Relationship: The child must be the taxpayer’s biological, adopted, stepchild, foster child, sibling, half-sibling, or grandchild.
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Dependency: The child must be claimed as a dependent on the taxpayer’s New York State tax return.
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Child’s Residency: The child must have lived with the taxpayer for more than half of 2025.
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Social Security Numbers: Both the parent and child must have valid Social Security Numbers .
Reasons for Application Refusals
Despite the expanded eligibility, some applications have been refused due to:
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Income Exceeding Phase-Out Limits: Families with incomes above certain thresholds may receive a reduced credit or no credit at all.
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Incorrect or Missing Information: Errors in Social Security Numbers, dependent information, or residency status can lead to application denials.
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Failure to Meet Residency Requirements: If the child did not live with the taxpayer for more than half of 2025, the application may be refused.
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Ineligibility of the Child: Children who do not meet the age or relationship criteria are not eligible for the credit.
How to Avoid Refusal
To ensure your application is accepted:
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Review Eligibility: Confirm that both you and your child meet all the eligibility criteria.
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Provide Accurate Information: Double-check Social Security Numbers, dependent details, and residency information.
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Consult Resources: Visit the New York State Department of Taxation and Finance website for guidance.
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Seek Assistance: Consider consulting a tax professional or utilizing free tax preparation services offered by various organizations.
For more detailed information on eligibility and application procedures, please refer to the official resources provided by the New York State Department of Taxation and Finance.
