Drake Tax - NY - Empire State Child Credit

Article #: 16434

Last Updated: October 21, 2024

 

Tags: Drake Tax

Drake Tax logo

The New York Empire State Child Credit is similar to the federal CTC.

Important  Beginning with tax year 2018, NY no longer allows the amount of federal child tax credit or additional child tax credit received to be used to compute the Empire State child credit. NY tax law now bases the Empire State child credit eligibility and credit amounts on the federal child tax credit as it existed prior to the federal Tax Cuts and Jobs Act. Therefore, the federal credit amounts and income thresholds that were in effect for tax year 2017 are used to calculate the Empire State child credit.

Facts about the Empire State Child Credit:

  • The New York Empire State Child Credit is refundable.

  • Each qualifying child MUST have a valid SSN or ITIN.

    • If the taxpayer's or child’s SSN or ITIN was issued after the due date of the return, they may claim only $100 per qualifying child.

  • A taxpayer is eligible for credit if:

    • The taxpayer is a full-year New York State resident, or are married to a full-year resident,

    • They have a qualifying child, and

    • They meet one of the following conditions:

      • has a federal child tax credit, additional child tax credit or credit for other dependents (claimed on federal Form 1040 or Form 1040-NR) or

      • federal adjusted gross income is:

        • MFJ: $110,000 or less

        • MFS: $55,000 or less

        • All Other Statuses: $75,000 or less.

If taxpayer claimed the federal child tax credit, the amount of the Empire State child credit is the greater of:

  • 33% of the portion of the federal child tax credit and federal additional child tax credit (computed as it existed before the TCJA) attributable to qualifying children, or

  • $100 multiplied by the number of qualifying children.

If the child is eligible for federal CTC, ensure that on the dependents screen, C has been selected in the drop list Eligible for Child Tax OR Other Dependent Credit. Review Wks 8812 to see the federal calculations and NY213 for the state calculations.

If the taxpayer did not claim the federal child tax credit, but meets all of the other eligibility requirements shown above, the amount of the Empire State child credit is $100 multiplied by the number of qualifying children. To indicate this in Drake Tax, on screen 2 Dependents, select State as NY and enter NYCTC in the State codes box for each eligible child. To the right, be sure to select the appropriate entry (O or N) in the drop list Eligible for Child Tax OR Other Dependent Credit. Review NY213 for the state calculation.

Overrides and additional entries are available on: States > New York > IT Credits 100 – 200 Series > screen 213.

See the New York State DOR Website for more information.