Empire State Child Credit for Grandparents and Kinship Caregivers

A Refundable Credit with No Minimum Income

The Empire State Child Credit is a New York State tax credit that pays up to $1,000 per qualifying child under age 4 and up to $330 per child aged 4 through 16 for Tax Year 2025. The maximum for children ages 4 through 16 increases to $500 for Tax Year 2026. The credit is fully refundable — you receive the money even if you owe no state income tax.

There is no minimum earned income requirement. A grandparent on Social Security with no wages can qualify if they are a full-year New York State resident, can claim the child as a tax dependent, and file a New York State tax return.

Who Qualifies

You claim the credit if:

1. You file a New York State income tax return
2. You are a full-year New York State resident
3. You claim the child as a qualifying dependent on that return
4. The child is under age 17 at the end of the tax year
5. Both you and the child have valid Social Security numbers or ITINs

For kinship caregivers, the key question is whether you can claim the child as a dependent. For a qualifying child, the child must have lived with you for more than half the year and must not have provided more than half of their own support. A qualifying relative has a different support test, and IRS tie-breaker rules apply if more than one taxpayer can claim the child.

You do not need legal custody to claim a grandchild as a dependent. Relationship and residency are two of the IRS tests; the child must also meet the applicable age, support, and tie-breaker rules.

How to Claim It

File New York State Form IT-213 (Claim for the Empire State Child Credit) with your state income tax return. The credit is calculated automatically if you use tax preparation software and enter the child as a qualifying dependent.

If you also qualify for the federal Child Tax Credit and/or the Earned Income Tax Credit, these are separate credits — you can claim all of them.

The Tax-Dependent Tradeoff

Claiming the child as a tax dependent may help with the Empire State Child Credit and other tax benefits. The federal Child Tax Credit, Earned Income Tax Credit, and head-of-household status each have separate eligibility tests; dependent status alone does not guarantee them.

But there is a tradeoff with health coverage. If you claim the child as a tax dependent, the child becomes part of your MAGI household for Medicaid and Child Health Plus eligibility. If your income is moderate, this could push the child from free Medicaid into a premium-based CHP tier.

Compare the tax benefits you qualify for with the effect of your income on the child's MAGI household and any Child Health Plus premium. The result depends on your tax and health-coverage circumstances.

Filing Deadline

The credit is claimed on your annual state tax return, due April 15. If you did not claim it for prior years when the child was living with you, you may be able to amend past returns.

The Empire State Child Credit is one of several programs available to kinship caregivers in New York. The complete benefits guide covers cash assistance, food stamps, Medicaid, childcare, and tax credits together — with the income rules and application steps for each.

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