Saving for education · Paying now
Help paying for school and college in New York
Saving is one part. The other part is help you can get now: tax credits, grants, free school meals and more. Many families miss money they could get.
- College: fill out the FAFSA every year. It opens the door to Pell, TAP and Excelsior.
- Tax time: the American Opportunity Credit can be worth up to $2,500 per college student.
- Young children: the Empire State Child Credit is up to $1,000 for a child under 4.
- School days: New York public schools serve free breakfast and lunch to all students.
General information, not financial, tax or legal advice. Amounts and rules change each year. Check the official office (links at the bottom) or a tax professional before you file or apply. Facts checked November 7, 2026.
🧾 College tax credits and deductions
| American Opportunity Credit (federal) | Lifetime Learning Credit (federal) | NY College Tuition Credit or Deduction | |
|---|---|---|---|
| Worth | Up to $2,500 per student: 100% of the first $2,000 + 25% of the next $2,000. | Up to $2,000 per tax return: 20% of up to $10,000. | Credit up to $400 per student, or an itemized deduction up to $10,000 per student. |
| Refund if you owe no tax? | Yes, 40% (up to $1,000). | No. | Yes, the credit is refundable. |
| Who | First 4 years of college, at least half-time, working toward a degree or credential. From 2026, a valid SSN is required (Pub. 970). | Any college course, any number of years, even one class. | Full-year NY resident; an undergraduate student (you, spouse or dependent). Form IT-272. |
| Income | Shrinks between $80,000 and $90,000 modified AGI ($160,000 to $180,000 joint). | Shrinks between $80,000 and $90,000 ($160,000 to $180,000 joint). | See IT-272 instructions. |
| Watch out | You cannot use the same dollars twice: not for a credit and also for a tax-free 529 or Coverdell withdrawal, and not for costs paid with tax-free grants. Colleges send Form 1098-T by January 31. | ||
🎓 FAFSA, Pell, TAP and Excelsior
- FAFSA (federal form), every year of college.Free at studentaid.gov. The student and a parent each make a StudentAid.gov account. The 2027-28 FAFSA opened to everyone on September 23, 2026. It uses tax information from two years before. Apply early: colleges and states set their own deadlines.
- Federal Pell Grant (free money).For students with financial need. For 2026-27 the most is $7,395 and the least is $740. You do not pay it back.
- NY TAP (Tuition Assistance Program).A New York grant of $1,000 to $5,665 a year for full-time students (12+ credits) at New York colleges. Dependent students: family NYS net taxable income up to $125,000. You must have lived in New York 12 months. Apply through the FAFSA link to TAP. Deadline for 2026-27: June 30, 2027.
- Excelsior Scholarship.Pays the rest of tuition at SUNY and CUNY state-operated colleges after Pell and TAP ("last dollar"). Family federal AGI up to $125,000. Full-time, 30 credits a year. After college you must live in New York (and work there, if you work) for as many years as you got the award, or it can turn into a loan. Apply separately at hesc.ny.gov when the application opens.
👪 Credits for children and child care
| Help | What it is (2026 unless noted) |
|---|---|
| Empire State Child Credit (NY) | Refundable. Per child: $1,000 under age 4; $500 age 4 to 16 (it was $330 for 2025). Reduced by $16.50 for each $1,000 of federal AGI over $110,000 (joint), $75,000 (single, head of household) or $55,000 (married separate). Full-year NY resident; Form IT-213. |
| Federal Child Tax Credit | Up to $2,200 per qualifying child, up to $1,700 refundable (IRS Rev. Proc. 2025-32). |
| Federal Child and Dependent Care Credit | For care so you can work or look for work, for a child under 13. Counts up to $3,000 of costs for one child, $6,000 for two or more. From 2026 the rate is 20% to 50%, depending on income (50% at $15,000 or less). Form 2441. |
| NY Child and Dependent Care Credit | New York's own credit. If you qualify for the federal credit, you can claim New York's, even if you do not claim the federal one. Form IT-216. New York City residents may get more. |
| Dependent Care FSA (at work) | Your employer takes care money out of your pay before tax. The yearly limit rose to $7,500 in 2026 (was $5,000). Sign up during your job's open enrollment, often in the fall. Money in the FSA reduces the costs you can use for the federal care credit. |
🍎 School meals and internet at home
Free for all
🍽️ School breakfast and lunch
Starting in 2025-26, New York schools in the federal school meal programs serve breakfast and lunch at no cost to all students. Ask your school's food service office whether you should still fill out a meal income form, because some other programs use it.
Reduced-cost plan
🌐 Internet: Affordable Broadband Act
Many New York providers must offer a plan for no more than $15 a month (at least 25 Mbps), or $20 for 200 Mbps, to households in SNAP, Medicaid, free or reduced-price school lunch, and some other programs. Call 211 for help (NYC: 311).
Federal
📱 Lifeline
Up to $9.25 a month off phone or internet for eligible households (broadband.ny.gov).
🛡️ Scholarship safety: never pay to get money
- Real help is free. Your school counselor, studentaid.gov and hesc.ny.gov never charge to apply.
- Do not pay a company to "find" scholarships or to fill out the FAFSA.
- "Guaranteed" or "you've won" a scholarship you never applied for is a warning sign.
- Never give a bank account, card number or your StudentAid.gov password to get a scholarship.
- Not sure? Ask your school counselor or the college aid office first. Report scams to the FTC at reportfraud.ftc.gov.
📅 A family money calendar for school
- JanuaryCollect W-2s, Form 1098-T from college (by Jan. 31) and Form 1099-Q if you took 529 money out.
- February to April 15File taxes. Claim college credits, the Empire State Child Credit, care credits. Coverdell and IRA contributions for last year are due by the filing date.
- SpringCompare college aid offers. Ask the aid office questions. Plan summer programs.
- June 30Last day to apply for TAP for the school year that is ending (2026-27: June 30, 2027).
- July to AugustBack-to-school costs. Pay college bills; take 529 money out in the same year you pay.
- September to OctoberNew FAFSA opens (2027-28 opened Sept. 23, 2026). Fill it out early. Ask your school about meal forms.
- NovemberJob open enrollment: sign up for a Dependent Care FSA for next year.
- December 31Last day to put money in a NY 529 for this year's New York deduction. Use this year's $19,000 gift exclusion.
🔢 Three families, made-up numbers
Example with made-up numbers
1. A first-year SUNY student
Family: married, filing jointly, federal AGI $95,000, New York residents. Made-up college costs: tuition $7,000, fees and books $2,500.
Pell grant (made-up): $3,000
TAP (made-up): $3,500
Tuition left: $7,000 − $3,000 − $3,500 = $500
Excelsior (last dollar): pays the $500 of tuition left
Family pays: fees and books $2,500
American Opportunity Credit: 100% × $2,000 + 25% × $500 = $2,000 + $125 = $2,125
(AGI $95,000 is under $160,000, so no reduction)
Because grants paid all of the tuition, the New York tuition credit likely does not apply this year. Ask a tax preparer.
Example with made-up numbers
2. Two working parents, children ages 3 and 7
Married, filing jointly, federal AGI $120,000, child care costs $9,000 in 2026.
Empire State Child Credit (2026):
Child age 3: $1,000 Child age 7: $500 → $1,500
Over the line: $120,000 − $110,000 = $10,000 → 10 × $16.50 = $165
Credit: $1,500 − $165 = $1,335
Dependent Care FSA: $7,500 of pay before tax
Federal care credit: limit $6,000 − $7,500 FSA = $0 left → no federal care credit
Federal Child Tax Credit: 2 × $2,200 = $4,400
Using the FSA here means no care credit. A tax preparer or tax software can compare both ways.
Example with made-up numbers
3. A single parent, one child age 10
Head of household, federal AGI $40,000, after-school care $4,000. The family gets SNAP.
Empire State Child Credit: age 10 → $500 (AGI under $75,000, so the full amount)
Federal care credit: costs count up to $3,000 (one child)
Rate at this income: between 35% and 50% (Form 2441 shows the exact rate)
If the rate were 37% (example rate): $3,000 × 37% = $1,110
NY care credit: figure it on Form IT-216
School meals: free at school
Internet: may qualify for a $15-a-month plan (SNAP) → call 211
❓ Questions
Do I need to do the FAFSA if I think we earn too much?
Yes, it is still worth it. Many colleges use it for their own aid, and it is needed for federal student loans and TAP. It is free.
Can I get both TAP and Excelsior?
Yes. Excelsior pays tuition left after Pell, TAP and other grants. You must apply for both.
Can I take both college credits for one student?
No. For one student in one year, choose the American Opportunity Credit or the Lifetime Learning Credit, not both (IRS Pub. 970).
Do K-12 costs get a tax credit?
No federal or New York credit for regular K-12 costs. Some savings accounts can pay K-12 costs; see the savings guide.
Disclaimer. General information, not financial, tax or legal advice. Programs, amounts and deadlines change. Check with the official office and a qualified professional. Last checked November 7, 2026.
🔗 Official sources (checked November 7, 2026)
- IRS Publication 970, Tax Benefits for Education (American Opportunity Credit; SSN rule from 2026): irs.gov/publications/p970
- IRS, Lifetime Learning Credit: irs.gov LLC
- 26 U.S.C. §25A (education credits): law.cornell.edu/uscode/text/26/25A
- NY Tax Department, College tuition credit or itemized deduction: tax.ny.gov college tuition credit
- Federal Student Aid, 2027-28 FAFSA live Sept. 23, 2026: fsapartners.ed.gov; FAFSA: studentaid.gov
- Federal Student Aid, 2026-27 Pell Grant amounts (GEN-26-01): fsapartners.ed.gov
- HESC, Tuition Assistance Program (TAP): hesc.ny.gov TAP
- HESC, Excelsior Scholarship: hesc.ny.gov Excelsior
- NY Tax Department, Empire State Child Credit: tax.ny.gov Empire State Child Credit
- NY Tax Department, Form IT-216 instructions (child and dependent care credit): tax.ny.gov IT-216-I
- IRS, Child and Dependent Care Credit information (2026 rates; FSA $7,500): irs.gov
- IRS, Dependent care benefits exclusion $7,500 from 2026: irs.gov
- IRS, Rev. Proc. 2025-32 (2026 Child Tax Credit $2,200, $1,700 refundable): irs.gov rp-25-32.pdf
- NYSED Child Nutrition, New York State Universal Free Meals: cn.nysed.gov
- NY ConnectALL, Consumer resources (Affordable Broadband Act; Lifeline): broadband.ny.gov
- Federal Student Aid, Avoiding scams: studentaid.gov/resources/scams; FTC report: reportfraud.ftc.gov