Credit Could Benefit Nearly 500,000 Kids in New York City, 887,000 Kids In New York State;
The Average Family Would Save $680 Annually
As cuts to critical social services like child care continue to plague NYC, U.S. Senator Kirsten Gillibrand held a press conference on her fight to put dollars in the hands of working families by calling for the passage of the expanded Child Tax Credit in the bipartisan Tax Relief for American Families and Workers Act. The passage of the expanded Child Tax Credit through this bill could benefit the families of 887,000 kids in New York State. The expansion would be a lifesaver for low-income families, helping them to qualify for a larger credit, adjusting the credit for inflation, and helping to lift an estimated 400,000 children across the nation out of poverty. Senator Gillibrand was joined by Traci Donnelly, Chief Executive Officer of The Child Center of NY; Deshi Singh, Co-Founder and Board Chair of Chamber of Mothers; Robert Ramos, President of Local 205 Day Care Employees; and Linda McPherson, President of Local 95 Head Start Employees.
“The Child Tax Credit is a lifeline for working families and one of the best tools we have for fighting child poverty. New York families have experienced the squeeze firsthand and understand that we need this source of federal funding,” said Senator Gillibrand. “The Child Tax Credit expansion expired at the end of 2021, and since then, child poverty has more than doubled nationwide. It’s truly unacceptable. This expanded credit would benefit nearly 900,000 New York kids and save the average family nearly 700 dollars per year. I am calling on my colleagues to pass the expanded CTC to provide additional support to kids most in need.”
“The financial, physical, mental, and social challenges mothers across the U.S. face feel insurmountable at times. From the rising cost of child care, stagnant wages, lack of paid family and medical leave policies, and limited access to quality maternal health care, we are in need of some relief. The Chamber of Mothers has heard from more than 1,200 of our advocates from 49 states, saying that Child Tax Credit is one simple, yet impactful way to lend support to mothers and families. When mothers have money in their pockets, they spend it on their kids, putting it right back into the economy and building a healthy next generation of workers, too. We strongly urge the Senate to support the Child Tax Credit expansion included in the Tax Relief for American Families and Workers Act.” –Deshi Singh, Co-Founder & Board Chair, Chamber of Mothers
The expanded Child Tax Credit would:
1. Provide a larger CTC for low-income families with two or more children: The original CTC is calculated by multiplying a family’s income above $2,500 by 15%. The expanded CTC multiplies the family’s income above $2,500 by 15% and also by the family’s number of children.
2. Allow taxpayers to use their income from either the current or prior year in calculations. Since the original CTC requires a parent to have at least $2,500 in annual income to qualify, this change would ensure that families whose income suddenly drops can still qualify.
3. Adjust the maximum CTC annually for inflation in 2024 and 2025.
4. Modify the overall limit on refundable Child Tax Credit: Under current law, the maximum refundable Child Tax Credit is limited to $1,600 per child for 2023. This expansion increases the maximum refundable amount per child to $1,800 in tax year 2023, $1,900 in tax year 2024, and $2,000 in tax year 2025.
In New York, an estimated 887,000 children would benefit from the expanded Child Tax Credit, including:
1. 484,704 in NYC
2. 97,998 in the Hudson Valley
3. 48,903 on Long Island
More information about the Child Tax Credit is available here. Families can calculate how much they would gain from the expanded Child Tax Credit here.