Families to score new $1,000 tax credit in move to ‘put money back in pockets’ – see if you’re owed the cash

CERTAIN American families will soon be able to get their hands on an updated refundable tax credit that’ll put up to $1,000 in their pockets thanks to progressive initiatives.

In a major increase to the Child Tax Credit, families can get their hands on a payment worth $500 to $1,000.

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The Child Tax Credit is a refundable tax credit aimed at offsetting the costs of raising a child.

Parents with dependent children can claim the credit, which is often tied to a taxpayer’s number of dependent children and income level.

Both federal and state governments offer child tax credits, with the former credit worth up to $2,000 and available to families with qualifying children under 17.

In addition to the federal government, 16 state governments offer a Child Tax Credit to provide a financial boost to families with children, especially lower and middle income ones.

New York is on the list of states providing the credit, with plans underway to significantly raise the amount of the refundable tax credit.

While the previous maximum payment stood at $330 per child, a reworked version of the New York state Child Tax Credit will provide eligible families a $1,000 credit for children under age four.

A $500 tax credit will be handed out to New York families with kids ages four through 16.

The new Child Tax Credit, effectively doubled for the average family, will provide significant relief to millions of working families in the state.

The change is part of a new New York state budget plan that Governor Kathy Hochul announced earlier this week, approved by legislative leaders.

“I promised New Yorkers to fight like hell to put money back in their pockets and make our streets and subways safer. That’s exactly what this budget will do,” said Hochul. 

“Working with our partners in the Legislature we’ve reached an agreement to pass a balanced, fiscally responsible budget. Good things take time, and this budget is going to make a real difference for New York families.”

HELPING HAND

Hochul’s outlined budget for the 2026 fiscal year is aimed at supporting New Yorkers and their families while building a strong and inclusive economy.

Beyond the expanded Child Tax Credit, the governor proposed many other initiatives to offer financial assistance to families and residents.

For example, Hochul will further support New York families by expanding access to child care with a $2.2 billion investment statewide.

Residents will also see the state’s first-ever Inflation Refund checks, with $2 billion going out to over eight million New Yorkers with checks of up to $400 per family.

Another budgeted strategy to support residents includes spending $340 million on providing free breakfast and lunch for every K-12 student in New York.

This initiative will help to save families an average of $1,600 per child.

The governor has also promised New Yorkers a $1 billion tax cut for middle and low class residents.

I promised New Yorkers to fight like hell to put money back in their pockets and make our streets and subways safer. That’s exactly what this budget will do.”

Kathy HochulNew York State Governor

As a result, tax rates will be at their lowest levels in nearly 70 years.

The legislative houses are projected to pass bills enacting these priorities and more across the next few days.

Hochul’s total budget for the 2026 fiscal year is estimated at roughly $254 billion.

Check out these other opportunities to put some money back in your pockets.

Just hours remain for Americans to claim a one-time special payment worth $500 – but you must meet three checks.

Plus, it’s the final weeks to get up to $10,000 from a $7.5 million data breach settlement – only one document is needed to get the cash.

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