Key Takeaways
• New York’s 2025 updates include Inflation Refund Credit, higher estimated tax threshold, and extended tax credits for immigrants with valid SSNs.
• The proposed Immigrant Worker Tax Credit offers $1,500 per worker for small businesses hiring eligible immigrant workers.
• Empire State Child Credit remains for children under 4; expansion is proposed but not yet passed.
In 2025, immigrants living and working in New York will see several important updates to tax benefits and credits, including the Earned Income Tax Credit, child tax credit, and other state and city-level programs. These changes affect who can claim certain credits, how much money they might receive, and what steps they need to take to get these benefits. Here’s a clear summary of what’s new, who is affected, when these changes take effect, and what actions immigrants and their families should take right now.
Summary of What Changed in 2025
- New York’s 2025-2026 fiscal plan brings changes to personal income tax rates, extends existing tax credits, and introduces new credits for certain industries.
- A one-time Inflation Refund Credit of $150 to $400 is available for many taxpayers in 2025.
- The threshold for filing estimated taxes will increase from $1,000 to $5,000 starting January 1, 2026.
- Metropolitan Commuter Transportation District (MCTD) payroll tax rates have changed, but these mostly affect employers, not individual taxpayers.
- The Empire State Child Credit (ESCC) expansion is proposed but not yet passed. The credit remains available for families with children under age 4.
- A new Immigrant Worker Tax Credit for small businesses is proposed but not yet law.
- Eligibility rules for The Earned Income Tax Credit and child tax credits remain mostly the same, but it’s important to check the details for 2025.
Let’s break down these updates and what they mean for immigrants in New York.
Who Is Affected by These Changes?
- Immigrants with valid Social Security numbers (SSNs): This includes green card holders, certain visa holders, and others with work authorization. These individuals can claim the Earned Income Tax Credit, child tax credit, and other state and city credits if they meet income and residency rules.
- Undocumented immigrants without valid SSNs: Most state and federal tax credits, including the EITC and child tax credits, are not available to those without a valid SSN. Some local programs or nonprofit help may be available.
- Small business owners: If the proposed Immigrant Worker Tax Credit becomes law, small businesses (with 50 or fewer employees) that hire and keep eligible immigrant workers for at least six months could get a $1,500 tax credit per worker.
- Families with young children: The Empire State Child Credit is still available for children under age 4 with valid SSNs. An expansion is proposed but not yet passed.
Effective Dates for Key Changes
- Inflation Refund Credit: Available for the 2025 tax year.
- Estimated Tax Threshold Increase: Takes effect January 1, 2026.
- MCTD Payroll Tax Changes: Effective July 1, 2025.
- Empire State Child Credit Expansion: Still pending; not yet in effect.
- Immigrant Worker Tax Credit: Still pending; not yet in effect.
Immediate Actions for Immigrants and Families
- Check Your SSN Status: Make sure you, your spouse, and your children (if claiming child credits) have valid Social Security numbers. You need these to claim most credits.
- Gather Income Records: Collect W-2s, 1099s, and, if self-employed, keep receipts, bank statements, and invoices to prove your earned income.
- Review Residency Status: Know if you are a full-year, part-year, or nonresident of New York, as this affects which credits you can claim and how much you can get.
- File the Right Forms: Use the correct New York State and New York City tax forms to claim each credit (see below for details and official links).
- Stay Updated: Watch for news about the Empire State Child Credit expansion and the Immigrant Worker Tax Credit, as these could bring more benefits if passed.
Detailed Overview of Key Tax Credits and Benefits
State Earned Income Tax Credit (EITC)
What Is It?
The Earned Income Tax Credit is a cash benefit for low- and moderate-income workers. In New York, the state EITC is usually 30% of the federal EITC amount.
Who Can Get It?
– Immigrants with valid SSNs who are U.S. citizens or resident aliens for the whole year.
– You must have earned income from work (wages, self-employment, etc.).
– You cannot file Form 2555 (Foreign Earned Income).
– Undocumented immigrants without SSNs are not eligible.
How Much Is It?
– The amount depends on your income, filing status, and number of children.
– For example, families with three or more children can get the largest credit.
– The state EITC is fully refundable for full-year residents, meaning you can get money back even if you owe no tax.
How to Claim It?
– File Form IT-215 with your New York State tax return.
Official IT-215 Form
– Keep proof of income and residency for at least three years.
Special Note for Self-Employed Immigrants
– Keep detailed business records, such as receipts and invoices, to show your earned income.
Empire State Child Credit (ESCC)
What Is It?
The ESCC is a cash benefit for families with young children. For 2025, it is available for children under age 4.
Who Can Get It?
– Families meeting income and residency rules.
– The child must have a valid SSN.
– The main taxpayer must have a valid SSN or, in some cases, an ITIN (Individual Taxpayer Identification Number), but for the ESCC, a valid SSN is needed for the child.
How Much Is It?
– The amount depends on your income and number of eligible children.
– The credit is fully refundable.
What’s New?
– Expansion Proposed: Governor Hochul has proposed expanding the ESCC, but as of July 11, 2025, this has not passed. The rules remain the same as in previous years.
How to Claim It?
– Claim the credit on your New York State tax return.
More about ESCC
Federal and State EITC for Families with Children
- Families with children can get larger EITC amounts.
- The child must have a valid SSN issued before the tax return due date.
- The credit phases in at higher rates for families with more children (up to 45% for three or more children).
New York City Household Credit
What Is It?
A small credit for New York City residents who meet certain income limits.
Who Can Get It?
– Full-year or part-year NYC residents who cannot be claimed as a dependent on someone else’s return.
– Must meet income limits.
– Immigrants with valid SSNs and NYC residency are eligible.
How Much Is It?
– Up to $15 for single filers with income under $12,500.
– Higher amounts for joint filers or heads of household, depending on number of dependents.
How to Claim It?
– File Form IT-201 (for full-year residents) or Form IT-360.1 (for part-year residents) with your state tax return.
NYC Credits Info
New York City Unincorporated Business Tax Credit
What Is It?
A credit for NYC residents who own a business, are partners in a partnership, or are beneficiaries of an estate or trust subject to the city’s unincorporated business tax.
Who Can Get It?
– NYC residents with valid SSNs who own a business or are otherwise subject to the tax.
How Much Is It?
– 100% of the tax for incomes up to $42,000.
– Phases down to 23% for incomes over $142,000.
How to Claim It?
– File Form IT-219 with your state tax return.
IT-219 Form
Inflation Refund Credit
What Is It?
A one-time credit for 2025 to help with rising costs due to inflation.
Who Can Get It?
– Taxpayers who meet certain income thresholds.
How Much Is It?
– Between $150 and $400, depending on your income.
How to Claim It?
– This credit will be applied when you file your 2025 tax return.
Proposed Immigrant Worker Tax Credit
What Is It?
A new credit proposed in Senate Bill S5594. If passed, small businesses (with 50 or fewer employees) could get a $1,500 tax credit for each eligible immigrant worker they hire and keep for at least six months.
Who Would Benefit?
– Small businesses hiring immigrant workers.
– Could encourage more job opportunities for immigrants.
Status
– As of July 11, 2025, this bill is still in committee and not yet law.
Step-by-Step Guide for Claiming Credits
- Check Eligibility
- Make sure you have a valid SSN (for EITC and child credits) or ITIN (for some other credits).
- Confirm your residency status in New York.
- Gather all income documents (W-2s, 1099s, business records).
- Complete the Correct Forms
- EITC: File Form IT-215.
- Empire State Child Credit: Claim on your state tax return.
- NYC Household Credit: File Form IT-201 or IT-360.1.
- NYC Unincorporated Business Tax Credit: File Form IT-219.
- Submit All Required Documents
- Include proof of income, residency, and SSNs for all dependents.
- Keep all records for at least three years in case you are audited.
- Watch for Updates
- Stay informed about the status of the Empire State Child Credit expansion and the Immigrant Worker Tax Credit.
Implications for Pending Applications
- If you are waiting for a decision on your SSN or immigration status: You must have a valid SSN by the tax return due date to claim most credits. If you get your SSN after filing, you may need to file an amended return.
- If you are a small business owner: If the Immigrant Worker Tax Credit passes, you may be able to claim it for workers hired and retained after the law takes effect.
- If you have a pending child tax credit application: The rules have not changed for 2025, but if the expansion passes, you may be able to claim a larger credit in future years.
Expert Analysis and Perspectives
According to analysis by VisaVerge.com, these tax credits play a big role in helping immigrant families in New York make ends meet. Advocacy groups are pushing for more access to credits for all workers, including those without SSNs, but current laws still limit eligibility. Small business groups support the proposed Immigrant Worker Tax Credit, saying it could help fill job openings and support immigrant workers. State leaders, including Governor Hochul, have made tax relief a top priority, especially with the new Inflation Refund Credit and the proposed child credit expansion.
Practical Tips for Immigrants in New York
- File your taxes on time and use the correct forms to claim every credit you qualify for.
- Keep good records of your income and residency, especially if you are self-employed.
- Check official government resources for the latest updates and detailed instructions. The New York State Department of Taxation and Finance offers up-to-date information on all credits and forms.
- Ask for help from trusted tax professionals or community organizations if you have questions about your eligibility or how to file.
Conclusion and Next Steps
In 2025, immigrants in New York with valid Social Security numbers can claim the Earned Income Tax Credit, Empire State Child Credit (for children with SSNs), and several city-level credits if they meet income and residency rules. The Inflation Refund Credit offers extra help this year. While some new credits, like the Immigrant Worker Tax Credit and the expanded child credit, are still pending, it’s important to stay informed and ready to act if these become law. For now, gather your documents, file the right forms, and make sure you claim every benefit you’re eligible for. Official resources and community help are available to guide you through each step.
Learn Today
Earned Income Tax Credit (EITC) → A refundable tax credit for low- to moderate-income workers based on earned income and family size.
Social Security Number (SSN) → A unique number issued to authorized workers needed to claim most tax credits and file returns.
Empire State Child Credit (ESCC) → A New York refundable tax credit for families with children under age 4 who have valid SSNs.
Inflation Refund Credit → A one-time credit in 2025 providing $150 to $400 to taxpayers to offset rising inflation costs.
Estimated Tax Threshold → The income amount triggering estimated tax payments, increasing from $1,000 to $5,000 starting January 1, 2026.
This Article in a Nutshell
In 2025, New York updates tax benefits for immigrants with valid SSNs, including the Inflation Refund Credit and extended child and earned income tax credits. Proposed new credits aim to support immigrant workers and small businesses. Stay informed, prepare your documents, and claim all eligible benefits for a stronger financial future.
— By VisaVerge.com
