The state Department of Taxation and Finance and the Office of Temporary and Disability Assistance are encouraging eligible taxpayers to claim the Earned Income Tax Credit. As many as one in five eligible workers overlook the refundable credit when filing income taxes, according to Internal Revenue Service estimates.
The Earned Income Tax Credit is a refundable federal and state income tax credit for individuals and families with an adjusted gross income of less than $51,567 in 2013. Benefits vary by income, family size and filing status. The state credit is equal to 30 percent of the allowable federal earned income credit, reduced by the amount of any household credit. An eligible family with three or more qualifying children may receive up to the maximum benefit of $8,159.
“Last year, EITC was claimed by 1.8 million New Yorkers who received nearly $5 billion in federal, state and New York City benefits,” Office of Temporary and Disability Assistance Commissioner Kristin M. Proud said in a statement. “EITC helps low-income, working families achieve the financial stability they work so hard for throughout the year. We want to ensure no eligible individual or family misses out on the benefit of this important support.”
Earned Income Tax Credit benefits in New York are among the most generous in the country, said Camille Siano Enders, New York’s taxpayer rights advocate.
In 2006, New York became the first state in the nation to enact the credit for non-custodial parents. The refundable credit encourages low-income non-custodial parents to work and stay current with their child-support payments. More than 7,600 non-custodial parents claimed a total of $3.5 million in such benefits in 2011, with an average refund of more than $460.
For more information about the Earned Income Tax Credit, visit the Department of Taxation and Finance’s website or call 518-457-5181. The Office of Temporary and Disability Assistance has information about tax credits on its website.
Tomorrow, on National EITC Awareness Day, staff from both agencies will be attending events across the state hosted by local nonprofit organizations.