New York Earned Income Tax Credit
New York State EITC is an important tax benefit for income-earning New Yorkers who file income tax returns with the IRS and New York State. The EITC can reduce the amount of tax owed, and even result in a significant refund.
New York State offers its own refundable EITC pegged to 30% of the federal credit, while New York City provides an additional EITC ranging from 10% to 30% of the federal amount.
As a result, for those who reside in NYC, the EITC encompasses credits provided by the federal government, the state of New York, and the city of New York.
FAQ
How much is the Earned Income Credit for New York State?
| NO. OF CHILD | EITC |
|---|---|
| 0 | $195 |
| 1 | $1,298 |
| 2 | $2,146 |
| 3 or more | $2,414 |
Can I get a refund if I owe no tax?
If your NY EITC is $2,146 and you owe $1,000 in state income tax, the credit cancels your tax bill and you receive the remaining $1,146 as a refund as illustrated in the table below:
| Sample Calculation | Amount |
|---|---|
| NY EITC | $2,146 |
| Tax Owed | $1,000 |
| Refundable Credit | $1,146 |
If you live in New York City, you may also receive an additional city EITC worth between $65 and $195, depending on your income.
How do I claim my EITC in New York?
To claim the New York State or New York City EIC, you must:
- complete Form IT-201 using the information from your federal return, worksheets, and earned income credit instructions, and
- file it with your New York State income tax return, and
- complete Worksheet C (New York City earned income credit) if you’re claiming the New York City EIC.
Noncustodial Parent Earned Income Tax Credit
New York was the first state in the nation to enact a Noncustodial Parent EITC in 2006 that may be claimed by eligible taxpayers instead of the regular New York State EIC.
This refundable credit encourages low-income noncustodial parents to work and stay current with their child support payments.
To claim the NCP EIC, you must file a Form IT-209: Claim for Noncustodial Parent New York State Earned Income Credit along with the Form IT-215.