Although economic constraints are still being felt by families, New York State heeds the call by providing financial aid through its Child Tax Credit initiative. It is now reported that Governor Kathy Hochul announced recently that supplemental checks, up to $330 per child, will be issued out to low- and moderate-income families by the end of August 2024. This new initiative will help support families who are already receiving the Empire State Child Credit.
Overview of New York Child Tax Credit
The Child Tax Credit is a federal incentive to help reduce the cost of raising children. In New York, a similar state-level initiative adds to this and is referred to as the Empire State Child Credit. The recent announcement by the governor is the latest in a series of attempts to try to help families cope with increases in childcare, education, and other living expenses.
Details of the $330 payment
These supplemental checks will be different according to the some individuals got from the Empire State Child Credit, which depends on their federal adjusted gross income. To be specific, families earning less than $10,000 will get a supplemental payment equivalent to the child tax credit sum. Those earning more will get at least 25 percent of their credit amount.
This approach ensures that the most vulnerable families get adequate support while also offering some support for those with slightly higher incomes.
Funding and implementation
It’s underwritten by the New York State budget, with $350 million set aside to cover that, and designed to provide immediate relief this year—with future payments dependent upon the passage of future state budgets. Governor Hochul said the measure was key against the backdrop of financial squeezes being put on too many families, saying, “Nobody disagrees that the cost of raising a family can be very, very difficult.”
Eligibility criteria
The following are the eligibility criteria that families must meet for the Empire State Child Credit and their $330 payment:
- Residency: Applicants must be a full-time resident of New York State or married to a resident.
- Income limits: The following income thresholds are required to be met by the families:
- $110,000 or less for married couples filing jointly
- $75,000 or less for single parents
- $55,000 or less for those married filing separately
- Dependent children: The payments apply to children under the age of 17.
Even families who didn’t qualify for the federal Child Tax Credit may be eligible for the state credit as long as their income meets the threshold limits.
How you’ll get the payment
Eligible families do not have to do anything extra to receive the $330 payment. The New York State Department of Taxation and Finance will distribute the payments on its own by drawing from information already available from tax filings. The process is streamlined, with the view of reducing barriers for families so that they can actually experience assistance without too much hassle with extra paperwork.
Key role of the initiative
The $330 payment per child is a step pivotal to easing financial stress in the families of New York. With inflation biting, this money will definitely be put to work in meeting daily expenses like food, cloth, school supplies, and educational materials. State Senate Majority Leader Andrea Stewart-Cousins referred to the need for the move, saying the government has to find ways to take some pressure off of families.
This decision by New York to issue a $330 payment per child toward the end of August 2024 is timely in the views of many, given that families are facing dire economic times. Through the Empire State Child Credit, the state is expected to offer critical financial relief to low- and moderate-income families. Accordingly, it will be upon families to fully understand the eligibility criteria and ensure that their payments come on time as the program gets underway. The development not only underscores the commitment of this state to its residents but also shows the need that exists for financial assistance programs at these uncertain economic times.
