Recent changes to New York’s budget are bringing new tax breaks and support for families. These updates can affect your family’s budget in real ways, whether it’s through child tax credits, free school meals, or help with education savings. Understanding these New York family tax benefits can help you make smarter choices and keep more money in your pocket. Let’s take a closer look at what’s changing and how it could impact your family.

Expanded Child Tax Credit in New York

One of the most important updates for families in New York is the expanded Child Tax Credit. Starting in 2025, more families qualify for this credit, and the amounts are larger. Parents can now receive up to $1,000 for each child under age 4 and $500 for each child between ages 4 and 16. Families earning up to $170,000 may be eligible.

This means a family with one toddler and one school-age child could receive $1,500 in tax credits. To claim the credit, families should file the standard New York income tax return and include Form IT-213. If a child is under 4, the state will automatically apply the benefit based on federal eligibility.

The New York State Child Tax Credit exists in addition to the federal Child Tax Credit, where parents can receive up to $2000 per child under 17 years old. This amount starts phasing out for those at higher income levels.

Free School Meals for All Students

Another major win for families is that all New York public school students, from kindergarten through 12th grade, can now receive free breakfast and lunch. There’s no need to apply, and income doesn’t matter. This universal program can save families around $165 per child each month. That adds up quickly and can make a big difference in your grocery budget.

One-Time Inflation Relief Payments

In addition to these credits, New York is sending out one-time inflation relief checks to eligible residents. These payments are based on your 2024 income:

  • Up to $400 for joint filers earning $150,000 or less 
  • $300 for joint filers earning between $150,000 and $300,000 
  • $200 for single filers earning $75,000 or less 
  • $150 for single filers earning between $75,000 and $150,000 

These checks will be sent automatically if you filed your 2024 taxes and were not claimed as a dependent. No additional paperwork is needed.

Education Savings Tips

Families saving for education should also know about the helpful tools available in New York. Parents can open a 529 college savings plan, which allows money to grow tax-free as long as it’s used for qualified education expenses. Another option is a Coverdell Education Savings Account (ESA), which can help cover K–12 costs as well as college.

Both savings accounts offer flexibility and tax benefits, making them strong tools for parents looking to invest in their children’s future.

Next Steps for Your Family’s Financial Plan

Now is a great time to take simple steps that can help you make the most of recent changes. Start by checking if your family qualifies for new tax credits or rebates. Filing your taxes on time is important so you can access those benefits sooner. If you’re saving for your child’s education, consider starting or reviewing a 529 plan or Education Savings Account (ESA). Be sure to track savings from school meal programs or rebate checks in your monthly budget, so you can see how much you’re actually saving. 

We Can Help You Navigate Changes in New York Family Tax Benefits

New York’s recent changes, from expanded tax credits to free school meals and relief payments, can provide real financial support to families. When used wisely, these benefits can help reduce your monthly expenses and improve your long-term financial outlook. If you’re not sure where to start, reach out to a trusted financial planner at DeSantis, Kiefer, Shall & Sarcone. We’re here to help you make the most of these programs and build a brighter financial future for your family.