Earned Income Tax Credit Helps Lower Income Taxes

Assemblywoman Encourages All To Apply for Valuable Income Tax Credit

January 28, 2010

Assemblywoman Annie Rabbitt (R,C,I-Greenwood Lake) would like to encourage all eligible residents to apply for the Earned Income Tax Credit (EITC) as they prepare their annual personal income tax returns. Despite awareness campaigns by the Internal Revenue Service (IRS) and its partners, millions of eligible taxpayers still are not claiming their EITC.

“With our economy still in shambles, taxpayers need all the relief they can get. In addition to this valuable tax credit from the federal government, both New York State and New York City offer local versions of the EITC. I encourage everyone to take a look at these tax credits as they prepare their tax returns,” said the Assemblywoman, who, in conjunction with the IRS and U.S. Department of the Treasury, is working to increase knowledge of the EITC by designating Friday, January 29, 2010 as EITC Awareness Day.

Specifically, the EITC is a refundable tax credit for low- to moderate-income working individuals that was originally enacted in the mid-1970s to help offset social security taxes and create a greater incentive for employment. For 2009 returns, individuals may earn EITC of up to $5,657, depending on income and dependents. The EITC has no effect on most welfare benefits and, in the majority of cases, will not be used to determine eligibility for Medicaid, Supplemental Security Income, food stamps, low-income housing or Temporary Assistance for Needy Families payments. To learn more about the federal EITC, please visit the IRS’s official website at www.irs.gov or call toll-free at 1-800-829-1040 weekdays between 7 am and 10 pm.

The New York State EITC provides individuals with a tax credit of up to 30 percent their federal EITC. In order to claim the state tax credit, individuals must apply for the federal EITC, have investments worth less than $3,100 and complete an IT-215 Claim for Earned Income Credit form, available on the New York State Department of Taxation and Finance’s official website at www.tax.state.ny.us. Forms also can be obtained by calling the Department at 1-800-462-8100. For more information or assistance with the New York State EITC and tax filing, please call the Department’s Personal Income Tax Information Center at 1-800-225-5829 weekdays between 8 am and 5 pm.

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