EARNED INCOME TAX CREDIT (EITC)

Rate (Fully-Refundable): 30% of the federal credit, reduced by the amount of any household credit.¹

Eligibility Requirements: All New York taxpayers who qualify for the federal credit are automatically eligible.

Latest Legislative Action:

• In 2022, The NYC EITC increased from 5% of the federal EITC to 10% to 30% depending on the filer’s income.
• During the 2016 legislative session, lawmakers considered several bills that would strengthen the state’s EITC, but the measures have all been held in committee for further consideration in 2017.
• A04340 would increase the rate to 35% of the federal credit over two years, while A09102 would raise it further to 45%, effective for tax year 2016 and beyond.
• A07357 would allow workers with no qualifying children to claim the state earned income credit equal to 75% of the calculated credit for a filer with one qualifying child.
• A07891 would create an additional earned income credit for youth workers between the ages of 17 and 24 who currently are not eligible for the federal EITC. The bill would offer these individuals 130% of the federal credit that would be available if they had reached the minimum age required. Additionally, the measure would increase the state’s standard income tax deduction for single 18 to 24-year-olds as well as offer a deduction for interest paid on qualifying student loans.
• A07486 would require that the state credit be paid in monthly installments rather than all at once, aiming to reduce binge spending and encourage smarter monthly budgeting practices by working poor recipients.

Notes:

• In addition to the state credit, New York City is one of only three cities to offer its own EITC, ranging from 10% to 30% of the federal credit depending on the filer’s income.²
• New York also offers a refundable Non-Custodial Parent Earned Income Credit, which allows non-custodial parents who are paying child support to claim an additional credit as long as they are completely up to date on their payments. These individuals are eligible for a credit of either 20% of the federal EITC that would apply if the non-custodial child qualified or 25% of the federal EITC as calculated for a childless worker. Filers who claim this credit cannot claim both the NCP and state EITC. 

CHILD TAX CREDIT (CTC)

Rate (Fully-Refundable): Greater amount of $100 per qualifying child or 33% of the taxpayer’s allowed federal CTC.³ 

Eligibility Requirements: All New York taxpayers who qualify for the federal credit are automatically eligible.

Latest Legislative Action: In 2023, Gov. Kathy Hochul expanded the Empire State Child Tax Credit (CTC) to children under four years old as part of the state’s FY2024 budget.

• During the 2016 legislative session, lawmakers considered a bill that would increase the state credit rate to 60% of the federal credit. The measure remains in committee to be reviewed for further action in 2017.

Notes: The state’s CTC is known as the Empire State Child Credit.

CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)

Rate (Fully-Refundable):⁴ Rates as a percentage of the federal credit change with the filer’s income according to the following brackets, two of which follow an incremental phase-out with additional income. See 2022 Form IT-216-I for a detailed breakdown.

Eligibility: All New York taxpayers who qualify for the federal CDCTC are automatically eligible.