NYS: Don't miss out on valuable tax benefits on National Earned Income Tax Credit Day

Millions of New Yorkers are eligible to claim up to $9,083 in earned income credits

Guest Editorial by the New York State Department of Taxation and Finance

On National Earned Income Tax Credit Awareness Day, the New York State Department of Taxation and Finance is urging taxpayers to review their eligibility for this valuable benefit. When the federal, New York state and New York City earned income tax credits are combined, they can be worth up to $9,083 for a family with three or more children.

“These credits can be a financial lifeline for working families, particularly those coping with the impact of the pandemic and rising daily expenses,” Acting Commissioner Amanda Hiller said. “I encourage all eligible New Yorkers to claim this credit, along with any other credits or deductions they’re entitled to receive this tax season.”

The earned income tax credit (EITC) is a refundable credit for working taxpayers who earn less than $57,414. This means you get a refund even if the credit amount is more than what you owe in taxes.

In 2019, almost 1.64 million New Yorkers received the federal EITC, claiming more than $4.8 billion in federal, New York state and New York City EITCs. Unfortunately, federal estimates show that almost 350,000 eligible New Yorkers may fail to claim the credit.

Every year, thousands of New Yorkers qualify for the EITC for the first time as their filing status or personal financial situation changes. Eligibility requirements for the Earned income credit (New York state) are explained on the Tax Department website.

For federal qualifications, see the IRS EITC webpage.

More information about federal, state and local earned income tax credits, including the value of available credits, is available here.

How To Apply

You must file a personal income tax return to receive the credit, even if you don’t owe any taxes. E-filing is the easiest way to file your return and the fastest way to receive your refund.

Most New Yorkers can file using Free File software, available at no-cost on the Tax Department website.