Drake Tax - NY: Form IT-216, Child and Dependent Care Credit
Article #: 20080
Last Updated: August 18, 2026
New York provides a Child and Dependent Care Credit for eligible taxpayers who pay qualifying care expenses so they can work or look for work. The rules for this credit change substantially beginning with tax year 2026.
Tax year 2025 and prior
For tax year 2025 and prior, the New York State Child and Dependent Care Credit is available to taxpayers who qualify for the federal child and dependent care credit. A taxpayer may qualify for the New York credit even if the federal credit is not actually claimed.
The New York credit is calculated using qualified expenses, the number of qualifying persons, and New York adjusted gross income.
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Full-year residents file Form IT-201 and attach Form IT-216. The New York State credit is refundable.
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Nonresidents file Form IT-203 and attach Form IT-216. The credit is nonrefundable and carries from Form IT-216 to Form IT-203.
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Part-year residents file Form IT-203 and attach Form IT-216. The credit may be partially refundable. Form IT-216 determines the refundable portion, which carries to Form IT-203-ATT.
See the applicable Form IT-216 instructions for complete eligibility and calculation rules.
Tax year 2026 and later
Beginning with tax years starting on or after January 1, 2026, New York replaced the prior federally linked Child and Dependent Care Credit with a new NY state credit under Tax Law § 606(c-2).
The new credit is available to eligible New York resident individuals and is refundable. It is calculated under New York-specific rules rather than as a percentage of the federal child and dependent care credit.
For 2026, qualified expenses are limited based on the number of qualifying individuals:
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One qualifying individual: $3,000
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Two qualifying individuals: $6,000
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Three qualifying individuals: $7,500
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Four qualifying individuals: $8,500
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Five or more qualifying individuals: $9,000
The applicable percentage begins at 55% and is reduced as New York adjusted gross income increases, subject to the limitations provided by New York law.
Because the 2026 credit uses new state-specific rules, do not apply the tax year 2025 and prior IT-216 calculation or nonresident/part-year resident treatment to a 2026 return.
Entering the Credit
Tax year 2025 and prior
Complete the federal child and dependent care information first.
On screen 2, enter:
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Each qualifying dependent's information.
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The amount of child or dependent care expenses incurred and paid for that dependent.
On screen 2441, enter:
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The care provider's identifying information.
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The total amount paid to each provider.
The applicable expense totals entered on screen 2 and screen 2441 must agree. If the totals do not match, Drake Tax may produce an EF Message or prevent the federal credit from calculating correctly.
For additional information about federal data entry, see Drake Tax - 2441 - Child and Dependent Care Credit .
Calculate the return and review Form IT-216 in View/Print mode.
For tax year 2025:
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Full-year residents: the credit calculated on Form IT-216 carries to Form IT-201 and is refundable.
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Nonresidents: the nonrefundable credit calculated on Form IT-216 carries to Form IT-203.
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Part-year residents: Form IT-216 calculates the applicable credit and refundable portion. The refundable portion carries to Form IT-203-ATT.
You may need to use NY screen 216 to:
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enter an explanation related to missing care provider information, or
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indicate that you have verified that the credit for prior year expenses paid is equal to or exceeds the expenses paid on IT-216, line 5.
Tax year 2026 and later
New York substantially changed the Child and Dependent Care Credit beginning with tax year 2026. The new credit is calculated under New York-specific rules and is limited to eligible resident individuals. The 2026 New York credit is no longer calculated as a percentage of the federal child and dependent care credit.
Additional information about data entry for Drake Tax 2026 will be provided when available.