NY Tax Credits: Free Money You Might Be Missing

Tax credits are more valuable than deductions—they reduce your tax bill dollar-for-dollar. New York offers numerous credits that many taxpayers overlook.

How Credits Differ from Deductions

Type	How It Works

Deduction

Reduces taxable income. $1,000 deduction saves $55-$109 (depending on bracket)

Credit

Directly reduces tax owed. $1,000 credit saves exactly $1,000

Credits are always more valuable. Here are all the NY credits you should know about.

1. NY Earned Income Credit (EIC)

Worth: 30% of your federal Earned Income Credit

If you qualify for the federal EIC, you automatically qualify for NY's version. This can be worth several hundred to over $2,000.

Federal EIC Amount	NY EIC Amount

$1,000

$300

$3,000

$900

$5,000

$1,500

$7,430 (max)

$2,229 (max)

Eligibility: Low-to-moderate income, with or without children

2. Empire State Child Credit

Worth: $100+ per qualifying child

Available to families with children under 17. The credit amount depends on income:

Income Level	Credit per Child

Under $110,000 (joint)

$330

Higher incomes	Phases down

To qualify:

Child must be under 17

Must be a NY resident

Must claim child on federal return

3. Child and Dependent Care Credit

Worth: Up to $2,310 per year

If you pay for child care so you (and spouse) can work, you may qualify.

Number of Dependents	Max Credit

1 child

Up to $1,155

2+ children

Up to $2,310

The credit is a percentage of your expenses based on income.

4. Real Property Tax Credit

Worth: Up to $500

For low-income homeowners and renters who paid property taxes (directly or through rent).

Eligibility:

Income below threshold (~$18,000 single, ~$32,000 family)

Must be NY resident

Must have paid property taxes or rent

5. College Tuition Credit or Deduction

Worth: Up to $400 per student per year

Available for qualified undergraduate tuition expenses.

Choose one:

Credit: Up to $400 (subtract from tax owed)

Deduction: Up to $10,000 (reduces taxable income)

For most taxpayers, the credit provides more value.

6. Solar Energy System Credit

Worth: 25% of qualified expenses, up to $5,000

If you install solar panels on your NY home, you can claim a significant credit.

Example: $20,000 solar installation = $5,000 NY credit

This is in addition to the federal 30% solar credit!

7. Agricultural Property Tax Credit

Worth: Varies based on school taxes paid

For farmers paying school property taxes on qualified agricultural land.

8. Long-Term Care Insurance Credit

Worth: 20% of premiums, up to $1,500

If you pay for qualified long-term care insurance, claim this credit.

9. Clean Heating Fuel Credit

Worth: Up to $500 per year

For purchases of clean heating fuel (biodiesel, etc.) for your NY home.

10. Noncustodial Parent Earned Income Credit

Worth: Up to $1,649

For noncustodial parents paying child support who don't qualify for the regular EIC.

Eligibility:

Must be current on child support obligations

Income limits apply

NYC-Specific Credits

NYC residents have additional credits:

School Tax Credit

Automatically included in IT-201

Based on income level

Enhanced Real Property Tax Credit

Additional credit for eligible NYC residents

Layered on top of state credit

How to Claim These Credits

Most credits are claimed on Form IT-201 or specific schedules:

Credit	Where to Claim

Earned Income	IT-215

Child Credit	IT-201

Child Care	IT-216

Property Tax	IT-214

College Tuition	IT-272

Solar	IT-255

Common Mistakes That Cost You Money

Not filing when you have no income tax - Some credits are refundable!

Forgetting the EIC - NY's 30% bonus is often overlooked

Not claiming property tax credit - Renters often miss this

Choosing deduction over credit - For college tuition, the credit is usually better

Not keeping receipts - Document child care, tuition, and other expenses

Refundable vs. Non-Refundable

Type	Meaning

Refundable	You get money back even if you owe no tax

Non-refundable

Only reduces tax to $0, no refund beyond that

NY refundable credits include: EIC, Noncustodial Parent EIC

Calculate Your Credits

Use our NY tax calculator to see your estimated tax liability, then review which credits might reduce your bill further. Many taxpayers leave money on the table by not claiming available credits.

Every NY Tax Credit You Might Be Missing in 2024