Family, Children & Caregiving · Surprise rank #317
Paying for Child Care or Adult Day Care? New York Refunds a Share — Even If You Owe No Tax
New York's child and dependent care credit is worth 20% to 110% of the federal credit and is refundable for state residents, so it pays out as cash. New York City residents can claim an additional city credit on top.
Who
Working parents and caregivers in New York who paid for care for a qualifying child under 13, a disabled spouse, or a disabled dependent who shares their home. You can claim the New York credit if you qualify for the federal credit, whether or not you actually claimed it federally.
Where: New York State, with an additional credit for New York City residents. Nassau and Suffolk residents claim the state credit only.
What to do
Start here: File Form IT-216, Claim for Child and Dependent Care Credit, with your New York return. Gather the provider's name, address and taxpayer ID number — you cannot claim the credit without them. Free filing help is available through NYC Free Tax Prep and IRS VITA sites in Nassau and Suffolk.
Eligibility: You must meet the federal child and dependent care credit rules — care paid so you (and a spouse, if married) could work or look for work, for a qualifying person who lived with you. New York residency determines refundability; the credit is nonrefundable for nonresidents. The New York City credit additionally requires city residency for all or part of the year.
What you get
If you paid someone to care for a child under 13, a disabled spouse, or another disabled dependent so you could work or look for work, New York gives you a credit calculated as a percentage of the federal child and dependent care credit. The percentage depends on your New York adjusted gross income — lower incomes get the higher percentages. For New York residents the credit is refundable, meaning you receive it as a refund even if you owe no state income tax. New York City residents may claim a separate city credit worth as much as 75% of the state credit, depending on federal adjusted gross income.
Benefit: A percentage of your federal child and dependent care credit, ranging from 20% up to 110% based on income, paid as a refund for New York residents. NYC residents can add a city credit of up to 75% of the state credit.
Possible value: Varies with income, number of qualifying people and how much you spent. New York's own analysis has shown average credits well above $400 statewide and higher in New York City, with the great majority claimed by households under $75,000. Households with two or more qualifying children and lower incomes see the largest amounts.
Good to know
Important: You must be able to identify your care provider by tax ID, which is the single most common reason claims fail — informal or cash arrangements with a relative or neighbor often cannot be substantiated. Care must have been paid so you could work or look for work, not for any other reason. Note also that this is a completely different credit from the Empire State child credit and from the federal Child Tax Credit; you may be eligible for more than one and should not stop at the first.
Availability: Active for the current tax year; claimed annually. Refundable for New York State residents.
Why people miss it: Families assume child care credits only reduce tax you owe, so people who owe nothing skip the form entirely — not realizing New York's version is refundable and pays cash.
Sources reviewed: Aug 10, 2026