If you have children, you may be eligible to claim credits that reduce the amount of tax you owe.

The Child Tax Credit (CTC) is a federal credit. To help families during the COVID-19 pandemic, you can get half of the refundable credit as monthly payments in 2021 and the other half as a refund in 2022. You may qualify even if you aren’t required to file your taxes.

The Child Care Tax Credit is a credit that helps families in New York City with child care expenses.

Eligibility and credit amounts depend on factors such as income, number of children, and residency.

To help families during the COVID-19 pandemic, the U.S. government made changes to the Child Tax Credit (CTC) for tax year 2021.

Advance Monthly Payments

Families can get half of the fully refundable credit as monthly payments in 2021 and the other half as a refund in 2022.

Families claiming CTC for tax year 2021 will receive up to:

  • $3,600 per qualifying child under 6
  • $3,000 per qualifying child between the ages of 6 and 17

Advance CTC Payments began July 15, 2021:

Age of Child in 2021

Monthly Payment (July-December 2021)

Lump-Sum Payment (2022 Tax Refund)

0-5Up to $300 per childUp to $1,800 per child
6-17Up to $250 per childUp to $1,500 per child

You will get maximum CTC payment amounts if you had no income or adjusted gross income (AGI) up to:

  • $75,000 (single filer or married couples filing separately)
  • $112,500 (head of household)
  • $150,000 (married taxpayers filing a joint return and qualifying widows or widowers)

Payments will begin to phase out (reduce) for incomes above these AGI amounts.

Eligibility

To get payments, you need to file a tax return or use the IRS CTC Non-Filer Sign-Up Tool even if you do not owe money. You are eligible for payments even if you are incarcerated or experiencing homelessness.

Important:

  • Your child must have a Social Security number (SSN).
  • You can have an SSN or Individual Taxpayer Identification Number (ITIN).

Next Steps

You do not need to take any action if you filed your 2020 (or 2019) tax return or used the IRS Non-Filer Tool to sign up for Economic Impact Payments (Stimulus Payments). Advance payments will be estimated from information included in your 2020 tax return (or 2019 return if your 2020 return is not filed and processed yet) or the information you entered into the IRS Non-Filer Tool.

If you are required to file a return but did not file your 2020 tax return, use NYC Free Tax Prep to file your taxes for free.

If you are not required to file a return because your AGI is under $12,400 (single filer), $18,650 (head of household), or $24,800 (joint filers), you can:

Learn more about the Child Tax Credit (CTC).

The New York City Child Care Tax Credit helps low-income or under-employed families pay for child care. Families with household incomes of $30,000 or less who pay child care expenses for children 3 and under may qualify for this local tax credit of up to $1,733. The Federal and New York State Child and Dependent Care credits do not have an income cap like the NYC Child Care Tax Credit.

Ask your tax preparer if you are eligible for the NYC Child Care Tax Credit, the Federal and New York State Child and Dependent Care credits, or other tax credits.

Individuals with an Individual Taxpayer Identification Number (ITIN) are eligible to claim the NYC Child Care Tax Credit as well as the Federal and State Child and Dependent Care credits.

The NYC Child Care Tax Credit is administered by the New York State Department of Taxation and Finance.

Online

Learn more about tax credits.

Visit the Department of Taxation and Finance website.

By Phone

Call 311 for assistance.