NY: Form IT-216, Child and Dependent Care Credit
Form IT-216, Claim for Child and Dependent Care Credit, is used to calculate the New York State Child and Dependent Care Credit. The rules for the credit change substantially beginning with tax year 2026.
Credit Qualifications
Tax year 2025 and prior
For tax year 2025 and prior, the New York Child and Dependent Care Credit is available to taxpayers who qualify for the federal child and dependent care credit. A taxpayer may qualify for the New York credit even if the federal credit is not actually claimed.
- Full-year residents file Form IT-201 and attach Form IT-216. The credit is refundable.
- Nonresidents file Form IT-203 and attach Form IT-216. The credit is nonrefundable and carries from Form IT-216 to Form IT-203.
- Part-year residents file Form IT-203 and attach Form IT-216. The credit may be partially refundable. Form IT-216 determines the refundable portion, which carries to the return.
See the applicable Form IT-216 instructions for complete eligibility and calculation requirements.
Tax year 2026 and later
Beginning with tax years starting on or after January 1, 2026, New York replaced the prior federally linked Child and Dependent Care Credit with a new state credit under New York Tax Law § 606(c-2).
The new credit is available to eligible New York resident individuals and is refundable. It is calculated under New York-specific rules rather than as a percentage of the federal child and dependent care credit.
For tax year 2026, qualified expenses are limited based on the number of qualifying individuals:
- One qualifying individual: $3,000
- Two qualifying individuals: $6,000
- Three qualifying individuals: $7,500
- Four qualifying individuals: $8,500
- Five or more qualifying individuals: $9,000
The applicable percentage begins at 55% and decreases as New York adjusted gross income increases, subject to the limitations provided under New York law.
Because the credit rules changed for tax year 2026, do not apply the tax year 2025 and prior calculation or nonresident/part-year resident treatment to a 2026 or later return.
Entering Child and Dependent Care Information
Complete the federal dependent and the child and dependent care interviews first. See Dependents – Entering Information in Program and Form 2441 – Entering Child and Dependent Care Expenses in Program for details.
Reviewing the New York Credit
After completing the federal dependent-care information, complete the New York state interview and review the calculated New York return and supporting forms.
Tax year 2025 and prior
Review Form IT-216 to verify the New York Child and Dependent Care Credit.
- Full-year residents: the credit calculated on Form IT-216 carries to Form IT-201 and is refundable.
- Nonresidents: the nonrefundable credit calculated on Form IT-216 carries to Form IT-203.
- Part-year residents: Form IT-216 determines the applicable credit and refundable portion. The refundable portion carries to Form IT-203-ATT.
Tax year 2026 and later
New York substantially changed the Child and Dependent Care Credit beginning with tax year 2026. The new credit is calculated under New York-specific rules and is limited to eligible resident individuals. The 2026 New York credit is no longer calculated as a percentage of the federal child and dependent care credit.
Additional information about data entry for TaxAct 2026 will be provided when available.