Latest news with #EmpireStateChildCredit
Hindustan Times
02-05-2025
- Business
- Hindustan Times
New York inflation refund checks: How much you could get from the state
In a major relief effort aimed at helping residents cope with the rising cost of living, New York State is set to roll out direct inflation refund checks as part of the newly approved 2025 state budget. The one-time payments, which could be as high as $400 per eligible household, are part of a broader economic package intended to ease the financial pressure on working- and middle-class families, as reported by The Journal News. Also read: Inflation in 2024-25 in four charts | Number Theory Governor Kathy Hochul and state lawmakers reached a final budget agreement late April, with the inflation refund checks emerging as one of its most widely anticipated features. The payments are designed to offer immediate financial support to those grappling with high prices on essentials like food, fuel, utilities, and housing. While exact eligibility criteria have not been publicly detailed in full, the program is expected to target lower- and middle-income New Yorkers — particularly those with dependent children. Individuals and households who previously qualified for state-level tax relief programs, such as the Earned Income Tax Credit (EITC) or the Empire State Child Credit, are likely to be among the primary recipients. State officials indicated that eligibility may be automatically determined based on 2023 tax filings, ensuring that most recipients won't need to apply. Checks are expected to be mailed or deposited starting in late spring or early summer. The inflation refund checks will range based on household income, family size, and prior eligibility for state tax credits. While some recipients may receive a few hundred dollars, others could get as much as $400, depending on their financial circumstances. The goal is to make the payments meaningful enough to provide short-term economic relief during a time of sustained inflation. The refund checks are just one part of the $237 billion state budget, which also includes investments in housing, education, transportation, and mental health services. The package reflects lawmakers' attempts to balance fiscal responsibility with the growing demands of New Yorkers who continue to feel the squeeze of inflation. The new budget avoids any major tax increases, opting instead for targeted relief efforts and expanded access to public services. The inclusion of direct payments signals a broader shift in strategy — focusing not only on long-term systemic change but also on immediate help for families struggling to make ends meet. With the refund program now approved, the Department of Taxation and Finance is expected to begin processing payments in the coming weeks. Residents are advised to keep their mailing and banking information up to date with state tax authorities to avoid delays. For many New Yorkers, the arrival of these checks could not be more timely. As the cost of living remains high and wage growth continues to lag behind inflation, the state's move to offer direct financial relief may offer a much-needed buffer — and signal more proactive measures ahead. Also read: Trump tariffs could put US Fed in a bind, Powell warns of 'tension' between employment, inflation goals The checks may not fix inflation, but for working families across the state, they could bring meaningful relief in the months to come.
Yahoo
30-04-2025
- Business
- Yahoo
New York child tax credit increases up to $1,000 in budget agreement
Editor's note: The above video originally aired on Jan. 8. NEW YORK (PIX11) – Parents in New York will get more financial help after an agreement in the 2026 State Budget. According to the agreement, New York families with kids under the age of four will get an annual tax credit of up to $1,000 per child. Families with kids between four and 16 will get up $500 per child. More Local News 'Putting nearly $5,000 back in the pockets of families means helping New Yorkers afford the rising costs of groceries, raising kids, and just enjoying life. When I said your family is my fight, I mean it – and I'll never stop fighting for you,' said Governor Kathy Hochul. The Empire State Child Credit expansion will double the average size of the existing credit from $472 to $943 per family. The current child tax credit gives families up to $330 per child. Additionally, New York's child tax credit will expand eligibility to families that make up to $200,000. An estimated 1.2 million children in New York City would benefit from the expanded program. Dominique Jack is a digital content producer from Brooklyn with more than five years of experience covering news. She joined PIX11 in 2024. More of her work can be found here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
08-04-2025
- Business
- Yahoo
Tax Day Countdown: 8 Tax Rebates You Probably Qualify for in 2025
Once your taxes are filed, you tend to stop caring about every little detail as long as you have it done. However, before you check all your itemized deductions and calculate your individual income tax to get the fattest tax refund possible, there may be a few other things you should research this tax season. Find Out: Consider This: Tax rebates provide a quick reimbursement from the IRS, based on money you spend on qualifying purchases. There aren't currently any federal tax rebates on offer, but many tax credits work nearly identically — you just have to wait a little longer for Uncle Sam to pay you back, but you will receive a refund when you file your taxes with these in mind. Some tax credits even qualify as 'refundable,' meaning the IRS pays you for them even if you don't owe any taxes at all for your 2024 tax year. This filing season may be coming to a close, but before you rush your filing status, it's good to know which rebate (in the form of a tax credit) you qualify for so you can take that cash and put it toward everything from funding emergency savings to padding your retirement plans. If you're overwhelmed by the impending tax deadline, you can try for an extension, opt to speak with a professional or even use a full-service filing tax software to help you avoid any tax liabilities. However, if you are ready to file, before you hit send, consider whether any of the following tax credits make sense for your budget in 2025 and beyond. Low- to moderate-income earners can score cash back from Uncle Sam through the Earned Income Tax Credit (EITC). The exact amount in 2025 depends on how many children you have: No qualifying children: $649 1 qualifying child: $4,328 2 qualifying children: $7,152 3 or more qualifying children: $8,046 The IRS sets income limits based on the number of children and whether you file as single or married. Through the EITC, some families not only avoid paying taxes, but the IRS returns money to them. Now that feels like a substantial tax deduction. Learn More: More families qualify for the child tax credit, with its higher household income limit of $200,000 ($400,000 for married couples). Families receive up to $2,000 per qualifying child. To qualify, you must claim the child as a dependent on your tax return, the child must be under age 17 at the end of the year, and they must have a Social Security number. For lower-income families who don't pay much (or any) federal income taxes, the child tax credit is partially refundable. Families can take refunds from the IRS up to $1,700 per child. In fact, some states offer their own additional child tax credits. 'For example, in New York the Empire State Child Credit allows residents with kids under 17 to receive up to $1,000 per child under four and $500 per child aged four to 16,' explained Steven Sarrel, a certified public accountant (CPA) and partner at Raines & Fischer, LLP. Children are expensive, to put it mildly. For that matter, aging parents and other dependents can also put a hurting on your household finances. 'If you pay for childcare or dependent care, you can claim expenses like daycare or after-school programs,' added Sarrel. 'The credit also covers home health aids if you are taking care of an elderly parent or family member.' The IRS credits 20%-35% of care expenses, up to $3,000 for one dependent and up to $6,000 for two or more. Adopting a child this year? Uncle Sam might reimburse you for some of the costs. As Sarrel put it, 'Those adopting a child in 2025 can claim up to $14,890 per child to cover fees and court costs.' If you pay for higher education costs this year, you can qualify for a tax credit up to $2,500. Of that, $1,000 is refundable for lower-income Americans who don't owe taxes. The IRS does put an income cap on this credit, however. You can't earn a modified adjusted gross income over $90,000 ($180,000 for married filing jointly) to qualify. The federal government offers a tax credit up to $7,500 for electric and fuel-cell vehicles. It comes with plenty of fine print, so read the full details about price limits, battery capacity and critical mineral requirements on the IRS website. 'Beyond the $7,500 in possible federal rebates, some states add their own benefits,' noted Sarrel. 'In New Jersey for instance, residents get a sales tax exemption of 6.625% when buying a new EV. In New York, you can get the 'New York Drive Clean Rebate' of up to $2,000 for the purchase of new electric vehicles. 'Lesser known savings are the local utility rebates from Con Edison for EV owners who install home chargers and charge their vehicles in off peak hours.' Homeowners can score double savings by reducing both their utility and tax bills. As Sean Lovison, certified financial planner (CFP), CPA and founder of Purpose Built Financial Services, explained, 'Upgrading your home with energy-efficient windows, insulation, or solar panels can qualify you for substantial tax credits. That helps offset the installation costs to keep it affordable for middle-class homeowners.' Check which exact home upgrades qualify at the government's Energy Star website. Historic homes qualify for their own special home improvement tax credit. 'If you own a historic property you can get federal and state tax credits for renovations in most states,' said Sarrel. 'For example, using New York State Historic Homeownership Rehabilitation Credit you can recoup 20% of qualified rehabilitation expenditures, with a maximum credit of $50,000 per year.' The bottom line is that all of these credits can function similarly to tax rebates, helping you recover some of the costs of upgrading your life in 2025. Do your homework on a tax credit before assuming you'll qualify for it, and let Uncle Sam pitch in to help you go back to school, buy a new car, upgrade your home, have kids or more this year. Caitlyn Moorhead contributed to the reporting for this article. More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 4 Things You Should Do if You Want To Retire Early 5 Cities You Need To Consider If You're Retiring in 2025 10 Cars That Outlast the Average Vehicle This article originally appeared on Tax Day Countdown: 8 Tax Rebates You Probably Qualify for in 2025 Sign in to access your portfolio
Yahoo
21-03-2025
- Business
- Yahoo
How much should the Empire State Child Credit offer families?
ALBANY, N.Y. (NEXSTAR) — New data reaffirms that families continue to struggle financially, with Gov. Kathy Hochul and the New York State Legislature under pressure to address rising child poverty statewide. The Rockefeller Institute of Government and the Citizens' Committee for Children of New York want the state to boost the Empire State Child Credit from current levels. Hochul outlined a plan in early January to raise the child tax credit from $330 per child to up to $1,000 per child until age 4, and $500 until age 16. Meant to cover 2.75 million children in 1.6 million households, the credit would pay out once a year, offering a refundable benefit even for families who owe nothing in taxes. If included as is in the state budget, it would adjust for income, with the full benefit available for households earning up to $110,000. More Local News An analysis from the Rockefeller Institute of Government's Chief Economist, Leigh Wedenoja, broke down the plan, comparing Hochul's expanded credit proposal to the temporary federal expansion that paid monthly checks under the American Rescue Plan. The research showed that child tax credits pull millions out of poverty, helping families save up for emergencies or big purchases. While the once-a-year payment may not be as helpful with regular expenses like rent or groceries, Wedenoja acknowledged, it would create a forced saving mechanism. That means New Yorkers could use a lump-sum from a tax credit for a down payment on a home or a reliable car. But Wedenoja also made the case for the credits having more value than just a tax refund. She pointed to research showing the knock-on effects of expanding child tax credits: improved prenatal outcomes, test scores, and employment numbers for single moms who reinvest in local economies. Wedenoja explained that the Empire State Child Credit follows recommendations from the Child Poverty Reduction Advisory Council, which formed in 2021 under the Child Poverty Reduction Act. But she said the state plan differs from earlier methods by setting a fixed amount per child instead of connecting to federal numbers, bringing New York in line with many other states that set their own credit values as necessary. The Rockefeller Institute analysis supported expanding the credit, but did not push for more than what Hochul had proposed. But advocates, including the Citizens' Committee for Children of New York (CCC), argue that boosting the credit further—and improving rental assistance, food support, and early care—would do more to meet families' basic needs every day or every month. A separate report released on March 18 by the CCC—backed by the New York Can End Child Poverty Coalition—advocated for a larger credit of $1,500 per child. Their report, available to read at the bottom of this story, factored in 18 well-being metrics covering economic security, housing, health, education, and youth. It showed gaps in early education and persistent health challenges that impact child development. The CCC report also determined that about 731,000 kids live below the poverty line in New York, with one in five facing poverty in 20 out of 62 counties. In counties where family incomes average between $46,000 and $75,000, most parents work for low wages while struggling with high costs. A family with two incomes needs about $138,000 a year to cover expenses, but the average family's annual income in New York is about $97,000. Many financial hardships come from long-standing social problems, according to the CCC report, but it's not an isolated issue. They found that over 20% of renter households in 50 of New York's 62 counties spend at least half their income on rent. Regionally, urban areas with dense populations have bleaker rents and higher poverty rates, while less populated rural areas have fewer job prospects and less access to social services. New York lawmakers also included new and improved tax credits in their budget proposals. Both the Rockefeller Institute and CCC want lawmakers to consider broader measures and targeted investment to address the rising cost of living and persistent inequality through targeted investments. More Local News Advocates, including groups such as the Schuyler Center for Analysis and Advocacy and the Children's Agenda, argued that expanded child tax credits form just a single, vital part of a larger effort to eradicate child poverty. They said that state leaders working on the Fiscal Year 2026 budget should not only increase tax credits to at least $1,500 per child, but also expand public assistance, health services, and affordable housing and education. 'New York's unacceptably high rate of child poverty is the result of policy choices—not personal failures. As this report shows, among the most pressing challenges families face is the cost of meeting basic needs, including access to affordable, quality child care,' said Children's Agenda CEO Larry Marx. 'While our elected representatives in Albany now debate the state budget, one of the most important ways to reduce child poverty statewide and make New York affordable for all families is to supplement families' incomes with expanded tax credits. That tool has been proven effective, and children's needs can't wait for action; they are the definition of now.' Take a look at the CCC report below: 2025_03_CFWB2025_Report_842f37Download Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
