New York Expands Child Tax Credit to $1,000 in 2025 Budget

The Child Tax Credit (CTC) is undergoing significant changes at both federal and state levels to provide enhanced financial support to families. At the federal level, the House Ways and Means Committee has proposed increasing the CTC to $2,500 for 2025 through 2028, then maintaining it at $2,000 thereafter, aiming to prevent the credit from reverting to the previous $1,000 amount. This credit can provide up to $2,000 per child under 17, with refundable portions available even to families with low or no income, offering substantial relief to many American households. Meanwhile, New York State has enacted a historic expansion of its child tax credit, tripling its size and broadening eligibility to families earning up to $170,000, which could deliver nearly $1,000 more per family annually, in addition to other benefits like inflation refund checks and free school meals. These efforts coincide with increased awareness around unclaimed credits from previous years, including the 2021 expanded $3,600 CTC under COVID-19 relief measures, highlighting ongoing needs for families to claim entitled benefits. Together, these developments reflect a broader push to enhance economic support for families through tax credits amid rising living costs.