New York's 2025 tax season is serving up two big changes for families: a richer Empire State Child Credit and new tax reporting tied to last fall's inflation refund checks. To grab the larger child credit, parents have to file a New York State return, and anyone who received an inflation payment needs to look out for a digital Form 1099‑G from the Tax Department.
What Changed For Families
For tax year 2025, the Empire State Child Credit has been significantly boosted: it is $1,000 for each qualifying child under age four and $330 for each child age four through 16. Children must still be under 17 on December 31, 2025 to qualify, and filers claim the credit by attaching Form IT‑213 to their New York return.
According to the New York State Department of Taxation and Finance, the full credit goes to single filers with federal adjusted gross income under $75,000 and joint filers under $110,000. Above those income levels, the credit is gradually reduced rather than cut off all at once.
Who Can Claim It and What It Means For Benefits
To take the Empire State Child Credit, you must be a full‑year New York State resident and provide a valid Social Security number or ITIN for yourself and for each child you list on the form.
Governor Kathy Hochul's office and state agencies say claiming the credit will not put Medicaid, SNAP, Supplemental Security Income, cash assistance, or housing benefits at risk. They also note that if recipients save their refund, it will not count against asset limits for 12 months.
Inflation Refund Checks: What The State Sent
The state began mailing one‑time inflation refund checks at the end of September 2025 and ultimately sent out more than 8 million payments. The checks generally ranged from about $150 up to $400, with the exact amount tied to filing status and 2023 income. The schedule and eligibility rules were published by the state and laid out in coverage of the rollout, including reporting from Axios.
Where To Find Your 1099‑G
The Tax Department does not mail paper Form 1099‑G statements. Instead, taxpayers have to log in to the department’s website to view and print the form. The 1099‑G lists any state refund amounts you received and is the document many people will need when they prepare their federal return, so it is smart to check for it early and follow the Tax Department's instructions for Form 1099‑G.
Federal Tax Treatment: It Depends
Whether your inflation refund is taxable on your federal return generally hinges on whether you itemized deductions in an earlier year. Taxpayers who previously deducted state taxes may have to report some or all of a refund as income, while those who took the standard deduction often do not.
Tax columnists and filing guides flag this as a gray area and suggest reviewing your Form 1099‑G and checking with a tax preparer or the IRS if you are unsure. For a detailed look at the possible federal reporting impact, see Kiplinger.
What To Do Now
To recap: file a New York State return if you want the Empire State Child Credit, have each child's SSN or ITIN ready, and download and print your 1099‑G if you received an inflation refund check.
Local reporting points out that almost 70 percent of New Yorkers use paid tax preparers, about 25 percent use commercial software, and roughly 2–3 percent rely on free filing centers. That means a lot of middlemen between you and your refund, so choose any paid preparer carefully and stay alert for phishing attempts that target refund recipients. For more detail on filing‑help statistics, see News10.
