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By Suzanne Blake
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New York state is urging millions of taxpayers to review their eligibility for several tax credits moving into the 2026 tax season.
For tax year 2025, the Earned Income Tax Credit and the Empire State Child Credit could be a significant boost in savings for residents across the state.
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Why It Matters
Tax season is underway, and the Trump administration has touted its Working Families Tax Cuts, which are “set to deliver the biggest refunds in American history,” the Treasury Department said in a X post on Monday.
Tax refunds are set to increase an average of $1,000 per household, according to the department. More than 100 million households will likely receive a refund. For American families with two children, the average tax cut will be $1,700 because of the enhanced child tax credit.
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What To Know
The New York State Department of Taxation and Finance urged taxpayers to look into their eligibility for this year’s tax credits in a release on Monday.
“The Earned Income Tax Credit and expanded Empire State Child Credit put money directly into the pockets of working taxpayers,” said New York State Department of Taxation and Finance Acting Commissioner Amanda Hiller in a statement. “I encourage all those eligible to take advantage of these valuable benefits that can be a financial lifeline for those struggling to make ends meet.”
The Earned Income Tax Credit is available for working taxpayers who earn less than $68,675, meaning that they’ll receive a refund even if the credit amount is more than what they owe in taxes.
Combined with Federal, New York State, and New York City Earned Income Tax Credits, the credit can be worth $12,873 for a family with three or more qualifying children, according to the New York tax department.
The Empire State Child Credit also expanded this year, with the maximum amount for children under age four now increased from $330 to $1,000 per child.
You may qualify for the refundable credit if you are a full-year New York State resident and have at least one qualifying child less than 17 years old on December 31 of the year you are claiming the credit for.
“Reviewing your tax credits and eligibility is critical because nothing is more powerful in the tax code than a credit. People often confuse a deduction with a credit, but they are very different,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek.
“A deduction reduces your taxable income, while a credit reduces your tax liability dollar for dollar. It simply does not get any better than that, which is why understanding what you qualify for should be a priority every filing season.”
What People Are Saying
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “Bottom line: do not assume last year’s credits apply the same way this year. Review them closely, understand the thresholds, and make sure you are not leaving money on the table.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “Receiving both credits is fairly simple as long as you file a personal income tax return in the state of New York and qualify. Obviously, with costs on so many items rising, these credits can go a long way in providing some additional relief to New Yorkers.”
Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: “Because these credits are designed to cover low- to moderate-income earners, even a slight variance in income or circumstances could cause one to qualify. All tax filers should take special care to ensure they are calculating for both the federal level and state level deductions and credits, even if they have never before qualified.”
What Happens Next
Taxes are due April 15, unless you file an extension.
With larger tax refunds, Americans are likely to hold more purchasing power in the year ahead.
“The hope, though, is with these revisions, more Americans will see increased rebate checks this year to go some way in alleviating general affordability concerns,” Beene said previously.
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