Credit Would Benefit 887,000 Kids In New York State
The Average Family Would Save $680 Annually
Today, U.S. Senator Kirsten Gillibrand held a video press conference to call for the passage of the Tax Relief for American Families and Workers Act and revealed how the expanded child tax credit included in it would help New York families. The expansion would make it easier for low-income families to qualify for the Child Tax Credit (CTC), adjust the credit for inflation, and help lift an estimated 400,000 children out of poverty.
“The Child Tax Credit is a lifeline for working families and one of the best tools we have for fighting child poverty,” said Senator Gillibrand. “The Child Tax Credit expansion expired at the end of 2021, and since then, child poverty has more than doubled nationwide. That’s unacceptable. This credit would benefit nearly 900,000 New York kids and save the average family nearly 700 dollars per year. I am calling on my colleagues to pass the expanded CTC to provide additional support to kids most in need.”
The expanded Child Tax Credit would:
- Provide a larger CTC for low-income families with more than 2 children: The original CTC is calculated by multiplying a family’s income above $2,500 by 15%. The expanded CTC multiplies the family’s income above $2,500 by 15% and also by the family’s number of children.
- Allow taxpayers to use their income from either the current or prior year in calculations. Since the original CTC requires a parent to have at least $2,500 in annual income to qualify, this change would ensure that families whose income suddenly drops can still qualify.
- Adjust the CTC annually for inflation in 2024 and 2025.
- Modify the Overall Limit on Refundable Child Tax Credit: Under current law, the maximum refundable child tax credit is limited to $1,600 per child for 2023, even if the earned income limitation described above is in excess of this amount. This provision increases the maximum refundable amount per child to $1,800 in tax year 2023, $1,900 in tax year 2024, and $2,000 in tax year 2025.
In New York, an estimated 887,000 children would benefit from the expanded Child Tax Credit, including:
35,893 in the Capital Region
52,748 in Central New York
48,761 in the Finger Lakes
97,998 in the Hudson Valley
48,903 on Long Island
484,704 in NYC
23,627 in the North Country
25,717 in the Southern Tier
68,649 in Western New York