Earned income tax credits can add up to $8,427 for a family with three children. As many as 430,000 eligible New Yorkers may be missing out on this benefit.
The New York State Department of Taxation and Finance and the New York State Office of Temporary Disability Assistance (OTDA) remind New York taxpayers to check their eligibility for the Earned Income Tax Credit (EITC).
The EITC can reduce the amount of taxes owed or provide a substantial tax refund. However, based on IRS estimates, each year more than 430,000 eligible New Yorkers—including nearly 250,000 in New York City alone—may fail to claim the credit. (See chart below for county-by-county estimates.)
EITCs are refundable federal, New York State, and New York City credits for working taxpayers earning up to the $53,267 maximum.To qualify, taxpayers must meet certain requirements and file a tax return, even if they don’t owe any tax or aren’t required to file.
In tax year 2013, the latest year for which federal data is available, more than 1.75 million New Yorkers received the federal EITC. When the federal, New York State and New York City benefits were combined, the benefit to working families and individuals was more than $5 billion. The average benefit was more than $3,000 per household.
Are you eligible?
Every year, thousands of New Yorkers qualify for the EITC for the first time as their filing status or personal financial situation changes.
The income limit varies based on number of children. The maximum for the 2015 tax year is $53,267 for a family with three children.
To qualify for the credit, in addition to meeting the income qualifications, taxpayers must:
The Tax Department also reminded those ineligible for EITC benefits to look for other possible tax credits that they might be eligible to claim, such as the child and dependent care credit.
How much is the credit worth?
The maximum credits increase annually and vary based on factors including family income and number of children. For tax year 2015, the maximum of the combined federal, state and New York City credits is $8,427 (for a family with three children) – a $134 increase over tax year 2014.
Taxpayers who were eligible in previous years but didn’t claim the credit may still be able to submit an amended income tax return for up to three years.
Noncustodial Parent Earned Income Tax Credit
New York was the first state in the nation to enact a Noncustodial Parent EITC in 2006. The refundable credit adds to the many ways that New York encourages low-income noncustodial parents to work and stay current with their child-support payments.
In 2013, almost more than 7,200 taxpayers claimed the Noncustodial Parent EITC for a total of $3.6 million.
For more information