Even if your income wasn’t that high in 2024, there is one option in particular that might significantly improve your family’s financial situation.
The Child Tax Credit is a little-known benefit that may be just what you need whether you’re a parent struggling to balance your bills or simply trying to make ends meet.
In 2024, you can claim up to $2,000 for each kid under the age of 17 under the kid Tax Credit.
Up to $1,700 of that sum is refundable, so families can get it even if they have no outstanding tax debt. “Your family may be eligible even if you had no income or owed income taxes,” according to federal regulations.
New York’s Child and Dependent Care Credit
The youngster needs to have a Social Security Number (SSN) in order to be eligible for this credit.
The child can only be claimed by one parent or guardian, and precedence is given to the person who has lived with the child for more than six months out of the year.
According to official specifications, this credit has no bearing on eligibility for public benefits because it is not regarded as income.
Individuals must make less than $200,000, while couples filing jointly must make less than $400,000.
A child, stepchild, adopted child, sibling, or descendant of a child (such as a grandchild or nephew) must be the subject of the claim.
Additionally, you must have lived in the United States with the filer for more than half of the year and not have supported them to the extent of more than half.
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Residents of New York who paid for child care for children under four in 2024 are eligible to apply for this refundable credit.
They must be eligible for the state credit and have a federal adjusted gross income of no more than $30,000. According to the regulations, “you can apply for both state and municipal credit.”
It is equal to seventy-five percent of the state credit in New York. Residents for half a year are eligible for a refundable part. The minor does not require an additional SSN; nevertheless, the filer is required to utilize an SSN or ITIN.
Residents of New York who earn up to $12,500 (for singles) or $22,500 (for married people) in federal adjusted gross income are eligible for this non-refundable credit.
The sum is determined using the tables found in forms IT-201 or IT-360.1 and fluctuates based on the declared dependents.
It is not available to those who are listed as dependents on another return.
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Specific instructions should be reviewed by married individuals filing separately. There is no choice for a return, and the credit ranges from $15 to sums determined by state formulas.
Procedure for applications and documentation
The child’s SSN is necessary for the Child Tax Credit. While filers without a Social Security number utilize an ITIN, adoptions require an ATIN.
Sections for claiming the credit are included on Forms 1040 or 1040-SR, and the due dates are in line with the federal tax season.
In order to get the Child and Dependent Care Credit in New York, you must provide documentation of your child care costs, such as daycare or caregiver receipts.
The state sum is determined using Form IT-216 and subsequently transferred to the municipal return.
Taxpayers must fill out Form IT-201 (for residents) or IT-203 (for non-residents) in order to receive the New York family credit. Tables released by the state Department of Taxation and Finance are used to calculate the amounts.
