Don’t Miss Out on Valuable Income Tax Credits!
State agencies raise awareness on Earned Income Tax Credit worth up to $8,293
January 30, 2015 - The New York State Department of Taxation and Finance and the Office of Temporary and Disability Assistance (OTDA) today encouraged New Yorkers to take advantage of the valuable Earned Income Tax Credit (EITC).
Today is EITC Awareness Day, a national effort sponsored by the Internal Revenue Service and supported by local officials and community organizations across the country.
“EITC is 40 years old this year, and yet many New Yorkers still don’t realize they may qualify for the tax credit if they make $52,427 or less,” said OTDA Executive Deputy Commissioner Sharon Devine. “According to some estimates, one in five taxpayers who qualify do not file for it. Let’s change that.”
EITC benefits vary by income, family size, and filing status, but eligible families with three or more qualifying children making under the $52,427 limit could receive a maximum combined federal, state, and New York City credit of $8,293.
Cash that counts
“This is cash that counts – additional dollars in your pocket for school supplies, rent, groceries, repairs or much needed savings,” said Margaret Neri, New York State Taxpayer Rights Advocate and Deputy Commissioner at the Tax Department . “If you were employed or self-employed, look into this important credit, and file for it!”
Every year, thousands of New Yorkers qualify for EITC for the first time as their financial, marital and parental statuses change.
Ms. Neri said EITC helps low-income, working families and individuals achieve financial stability during “hard times.” She called New York’s portion of the credit “one of the most generous in the nation.” Last year, EITC was claimed by 1.8 million New Yorkers with an estimated combined federal, state and New York City payout of more than $5 billion.
Noncustodial Parent Earned Income Tax Credit
In 2006, New York became the first state in the nation to enact a noncustodial parent EITC. The refundable credit is yet another way that New York encourages low-income noncustodial parents to work and stay current with their child support payments.
In 2012, the most recent year for which statistics are available, nearly 7,700 noncustodial parents claimed $3.6 million in NCP EITC for an average refund of $472.