The Earned Income Tax Credit (EITC)
The Federal, New York State, and New York City Earned Income Tax Credits (EITCs) are refundable tax benefits for working people with low or moderate incomes
- Agency
- New York State Office of Temporary and Disability Assistance
- Type
- Federal, State, and City Program
- Phone
- (518) 434-3100
- Application Period
- Income Limit
- Low to moderate income
The Federal, New York State, and New York City Earned Income Tax Credits (EITCs) are refundable tax benefits for working people with low or moderate incomes. They aim to reduce the tax burden, supplement wages, and provide an incentive for working.
The Federal, New York State, and New York City Earned Income Tax Credits (EITCs) are refundable tax benefits for working people with low or moderate incomes. They aim to reduce the tax burden, supplement wages, and provide an incentive for working.
Eligibility Requirements
Working people with low or moderate incomes
Images & PDFs
Basic Needs Center Toolkit
A diagram showcasing a 'One-Stop Center' providing various supports such as public benefits enrollment, legal aid, and tax preparation, intended to assist individuals in hardship.
View Full ImageNational Taxpayer Advocate — 2016
A document provided by the Taxpayer Advocate Service aimed at offering guidance and support for taxpayers experiencing financial hardship, focusing on IRS-related issues and services.
View Full ImagePromoting Tax Credits for Working Families
A guide encouraging the use of EITC and CTC for working families, highlighting benefits, eligibility, and application steps using empowering language.
View Full ImageUntitled Tax Outreach
A promotional poster encouraging individuals to file taxes for free to claim the Earned Income Tax Credit and Child Tax Credit. Highlights the importance of claiming what is rightfully theirs.
View Full ImageImpact Reports
EITC: Strengthening Communities through Economic Support
7/22/2020 | Coverage: national
The report discusses how the EITC contributes to community economic growth and reduces the stigma of receiving assistance.
Source: Center for Law and Social Policy
Coverage Area: national
EITC's Role in Supporting Working Families: Evidence from New York
12/1/2020 | Coverage: state
This report focuses on the impact of the EITC in New York State, highlighting its effectiveness in supporting working families amidst rising living costs.
Source: New York City Department of Consumer and Worker Protection
Coverage Area: state
The Earned Income Tax Credit: A Vital Tool for Low-Income Families
9/15/2021 | Coverage: national
This report analyzes the effectiveness of the EITC in providing financial relief to low-income families and its role in reducing poverty.
Source: Urban Institute
Coverage Area: national
The Earned Income Tax Credit and Its Impact on Financial Hardship
5/10/2021 | Coverage: national
This paper provides empirical evidence showing how the EITC alleviates financial hardships for low-income households across the United States.
Source: Federal Reserve Bank of San Francisco
Coverage Area: national
Program Timeline
EITC Permanently Expanded
12/18/2015The Protecting Americans from Tax Hikes Act of 2015 made significant parts of the EITC expansion permanent, ensuring ongoing support.
Temporary Expansion of the EITC
1/1/2001The Economic Growth and Tax Relief Reconciliation Act temporarily expanded the EITC for married couples.
Further Expansion of the EITC
8/10/1993The Omnibus Budget Reconciliation Act of 1993 significantly increased the EITC, targeting families with children.
Expansion of the EITC
10/22/1986The Tax Reform Act expanded the EITC eligibility and increased the credit amount, benefiting more families.
Creation of the EITC
1/1/1975The Earned Income Tax Credit (EITC) was established as part of the Tax Reduction Act to provide financial relief to low-income workers.
FAQ
The amount you can receive from the EITC varies based on your filing status, number of qualifying children, and your income. For tax year 2023, the maximum EITC amount is approximately $7,430 for those with three or more qualifying children, with lower amounts for fewer children.
The Earned Income Tax Credit (EITC) is a tax benefit for working individuals and families with low to moderate income. It reduces the amount of tax owed and may result in a refund. In New York, the state EITC is a percentage of the federal EITC, providing additional support to eligible residents.
Reference: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit
To be eligible for the EITC in New York, you must meet several criteria: you need to have earned income, have a valid Social Security number, and file a tax return, even if you do not owe taxes. Additionally, your investment income must be below a certain threshold. The credit amount varies based on income and the number of qualifying children.
To determine your eligibility for the EITC in New York, check the following:
- You have a valid Social Security number.
- You have earned income from employment or self-employment.
- Your investment income is below $10,300.
- You filed a tax return, even if you do not owe taxes.
- You meet the income limits based on your filing status and number of children.
Make sure you meet all these criteria to qualify for the EITC.
If you are eligible, consider taking the following action steps:
- Gather necessary documents such as W-2s and proof of income.
- Complete your tax return, ensuring to claim the EITC.
- Consult a tax professional if you have questions about your eligibility.
- Check the status of your refund if you filed your return.
These steps will help ensure you maximize your EITC benefit.
Reference: https://www.tax.ny.gov/pit/credits/eitc.htm
This FAQ is for informational purposes only and should not be considered tax advice. For specific tax-related inquiries, consult a qualified tax professional.
