Empire State Child Tax Credit calculating as $0 (2022 tax year)

[ny_question]

Per turbotax, "We checked your federal return and saw you have a child who qualified you for the federal child tax credit. This child also qualifies you for a $0 Empire State Child Credit."

Per tax.ny.gov, it seems like the credit should be at least $100, not $0: Empire State child credit (ny.gov)

What's going on here?

[LindaS5247]

Did you review the eligibility requirements for the Empire Child Tax Credit carefully as they are not the same as the requirements for the Federal Child Tax Credit?

Who is eligible? 

You are entitled to this refundable credit if you:

• were a full-year New York State resident or married to a full-year resident,
• have a qualifying child*, and
• meet one of the following conditions:
  • you have a federal child tax credit, additional child tax credit or credit for other dependents (claimed on federal Form 1040 or Form 1040NR) or
  • your New York recomputed federal adjusted gross income is:

Filing Status:                                                                                                   NY Recomputed Federal Adjusted Gross Income

Married filing a joint return                                                                             $110,000 or less

Single, or head of household, or qualifying surviving spouse                   $ 75,000 or less

Married filing separately                                                                                  $  55,000 or less

*A qualifying child must be at least four but less than 17 years old on December 31 of the tax year and must qualify for the federal child tax credit.

You can access the Empire State Child Tax Credit in the New York state section of TurboTax.

You’ll see a screen called Take a look at New York credits and taxes. Start Empire State Child Tax Credit to begin.

The credit is a refundable credit for full-year New York State residents with children who qualify for the Federal Child Tax Credit and are at least four years of age.

 

[ny_question]

Yes, I am full-year New York State resident and TurboTax explicitly states I have a qualifying child and qualify for the federal tax credit (see original post). Yet, TurboTax is computing a $0 Empire State Tax Credit.

Is this a bug in the software?

[BrittanyS]

It would be helpful to have a TurboTax token.  The token provides a sanitized version of your return.  We will be able to see the numbers but not any personal information such as your name, SSN, or address.  

If you would like to do this, here are the instructions: 

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen, and you will get a Token number. 

In TurboTax CD/Download versions, go to the black panel on your screen and select Online. 

1. Scroll down and select Send tax file to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click send through this screen, and you will get a Token number. 

Reply to this thread with your Token number. 

We will then be able to see precisely what you are seeing, and we can determine what exactly is going on in your return and provide you with a resolution.

[ny_question]

Thanks, my token is 1114718.  Tax.ny.gov says the credit is the greater of a percent or $100.  Even if the percentage works out to $0, it seems I should still be getting $100.

[BrittanyS]

The income has caused the Empire State Child Credit to phase out, which resulted in the amount being $0.  See the worksheet below that describes the calculation required to receive the child's credit.  

The amount under line 6 on your return exceeded the $2,000 allowed.  This resulted in your credit is reduced to $0.  

For more information, see the link below on the instructions for calculating the Empire State Child Credit:

Empire State Child Credit Instructions

@ny_question