1.6 million New Yorkers receive $940 million annually; benefits can be as high as $7,500 when combined with federal program
The New York State Office of Temporary and Disability Assistance and the New York State Department of Taxation and Finance joined the Internal Revenue Service, local charity organizations, and thousands of volunteers across the state to kickoff Earned Income Tax Credit Awareness Day on Friday.
The earned income tax credit is a refundable federal and state income tax credit available to working individuals and families with adjusted gross incomes less than $50,270. Eligible families with three or more qualifying children can receive up to $5,891 on their federal income tax return, and as much as $1,767 from New York state. New York City residents are eligible for the New York City EITC credit of up to $295 in addition to the federal and state credits.
The IRS estimates that as many as one in five eligible workers overlooks the EITC when filing income taxes. Across New York and the nation Friday, EITC events were held to educate communities and encourage participation by all eligible taxpayers.
New Yorkers can begin filing their federal and state income taxes on Jan. 30.
"Of the $940 million in New York state EITC benefits paid annually, 96 percent go to families with children," said Commissioner of Taxation and Finance Thomas H. Mattox. "With benefits that average $600 and range as high as $1,700, this program is critical to the these families, particularly when combined with the federal credit. When filing your income taxes this year, it is important not to overlook this very valuable program."
"The EITC provides the households of eligible working New Yorkers with an infusion of resources that can significantly increase their income and help them on their way to financial stability," said Acting Commissioner of the Office of Temporary and Disability Assistance Kristin M. Proud. "In tax year 2010, working households in New York state claimed $3.7 billion in federal EITC in addition to over $940 million in state EITC. This benefit is significant and one of the most important ways the federal government and the state of New York help support working families."
Noncustodial Parent Earned Income Tax Credit
New York is the only state in the nation that provides for a noncustodial parent earned income tax credit. The NCP EITC is designed to support low-income noncustodial parents who are working and paying their current child support obligation in full. In 2010, more than 7,700 noncustodial parents claimed $3.5 million in NCP EITC for an average refund of $456. The NCP EITC is yet another way that New York provides support to low-income families and encourages noncustodial parents to support their children.