Many New York Parents Could Get Thousands Back On Taxes

If you’re a parent in New York State, you already know how quickly the costs add up. Childcare, groceries, school supplies, sports fees, doctor visits… it never really stops. That’s why this is one of those things you’ll want to pause and read, because it could mean real money back in your pocket.

The New York State Department of Taxation and Finance is reminding families that income tax credits are available now, and many parents either forget about them or don’t realize they qualify. And yes, these credits can be a big deal.

Introducing the Earned Income Tax Credit (EITC) for Working Families

Let’s start with the Earned Income Tax Credit, often called the EITC. This credit is for working New Yorkers who earn under $68,675 a year. The important thing to know is that it’s refundable. That means even if you don’t owe anything in taxes, you can still get money back.

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When you combine the federal credit, the New York State credit, and the New York City credit, if you live in the city, this can add up to as much as $12,873 for families with three or more qualifying children. That’s not pocket change. That’s catch up on bills, rebuild savings, or finally breathe a little money.

Many families qualify for the EITC for the first time after a life change. A new baby, a job change, a shift in income, or a change in filing status can all make a difference. For federal rules, the Internal Revenue Service has clear guidelines, and New York has its own eligibility rules.

Potential Savings from the EITC for New York Families

This one is especially important if you have younger kids.

For tax year 2025, the Empire State Child Credit was significantly expanded. If you have a child under age four, the maximum credit jumped from $330 to $1,000 per child. That’s a huge increase for families already struggling with daycare costs and diaper expenses.

You may qualify if you’re a full-year New York State resident and have at least one qualifying child under 17. Like the EITC, this credit is refundable, meaning it can still help you even if your tax bill is already zero.

Filing a Tax Return Is Required to Claim Credits

This part trips up a lot of people. To get these credits, you have to file a New York State income tax return, even if you don’t owe anything. The good news is that filing doesn’t have to cost you money.

How to File Your Taxes for Free in New York

If your income meets certain requirements, New York offers Free File options that let you file both your state and federal returns at no cost. This can save you hundreds of dollars compared to paying for tax prep.

And if you don’t qualify for Free File, there are still other low-cost and sometimes free e-filing options available through the state.

Where to Get Free Tax Help in New York

If taxes feel overwhelming, you’re not alone. New York’s Taxpayer Assistance Program offers free help for eligible taxpayers. During a scheduled session, a representative walks you through the process step by step using secure online software. You’re still filing your own return, but you’re not doing it alone.

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Don’t Miss Out on Tax Credits

So many parents assume they won’t qualify or think it’s not worth the hassle. But every year, thousands of New York families miss out on money simply because they didn’t know these credits applied to them.