A surprising amount of money could be put back into your family’s budget through one chance, even if you didn’t make that much in 2024. The Child Tax Credit is a little-known benefit that could help parents who are trying to find a way to pay their bills or just make ends meet.
You can get up to $2,000 from the Child Tax Credit for each child under 17 years old in 2024. It’s possible for families to get back up to $1,700 of that amount, even if they don’t owe taxes. Government rules say that “your family may be eligible even if you had no income or owed income taxes.”
New York’s Child and Dependent Care Credit
The child must have a Social Security Number (SSN) in order to get this credit. People who have lived with the child for more than six months during the year have priority. Only one parent or guardian can claim the kid. Official rules say that since this credit is not salary, it does not affect a person’s ability to get public benefits.
One of the requirements is that the person’s or couple’s income must be less than $200,000 a year. The child being claimed must be a child, stepchild, adopted child, sibling, or relative of the person making the claim, like a grandson or nephew. You must have stayed with the filer in the US for more than half of the year and not paid for more than half of your own expenses.
People who lived in New York and paid for child care for kids younger than 4 in 2024 can apply for this credit, which they can get back. Their federal adjusted gross income can’t be more than $30,000, and they have to be able to get the state credit. The rules say, “You can apply for both state and municipal credit.”
This much is the same as 75% of the New York state credit. Half-year residents can get a part of their money back. The child doesn’t need an extra SSN, but the person filing must have an ITIN or SSN.
New York people with a federal adjusted gross income of up to $12,500 (single) or $22,500 (married) can get this credit, which is not refundable. The amount is based on the number of reported dependents and is found using the tables in forms IT-201 or IT-360.1.
People who are added as dependents on another return can’t get to it. People who are married and filing separately should read the specific directions. The credit is between $15 and amounts determined by each state, and there is no way to get your money back.
The application and paperwork process
For the Child Tax Credit, you need the child’s SSN. Adoptions require an ATIN, while filers without SSN use an ITIN. There are parts on Forms 1040 or 1040-SR for claiming the credit, and the due dates are the same as the federal tax season.
For the Child and Dependent Care Credit in New York, you need to show proof that you paid for child care, like daycare or caregiver records. Form IT-216 is used to figure out the amount for the state, which is then sent to the local return.
Taxpayers must fill out Form IT-201 (if they live in New York) or IT-203 (if they don’t) to get the New York family credit. The state Department of Taxation and Finance puts out tables that show the amounts.