Hundreds of thousands of New York State residents are missing out on thousands of dollars in tax refunds.
The Earned Income Tax Credit (EITC) is often overlooked and undervalued, which is why Iím encouraging hardworking Brooklyn families to claim it before the April 15 deadline to file 2009 taxes. Each year, an estimated 300,000 eligible New York households Ė a whopping 20 percent of eligible taxpayers Ė never claim the EITC.i
Most of those families who donít claim the tax credit donít realize the benefit. This is a tax credit that offers truly significant savings for eligible families. The EITC gives families a chance to meet day-to-day expenses and save for their futures.
Donít pass on this opportunity.
The EITC was instituted to offset Social Security taxes for low-income workers. The Assembly championed the establishment of a state EITC, and in 2002 increased it to 30 percent of the federal credit. Your state and federal refunds, along with New York City credits, can bring your refund up to $7,637 for eligible families.
Taxpayers with adjusted gross incomes below the following limits may be eligible for the EITC:
- $43,279 ($48,279 married filing jointly) with three or more qualifying children;
- $40,295 ($45,295 married filing jointly) with two qualifying children;
- $35,463 ($40,463 married filing jointly) with one qualifying child; and
- $13,440 ($18,440 married filing jointly) with no qualifying children.
To be eligible for the New York City EITC you must, in addition to the above requirements:
- Be a full-year or part-year resident of New York City;
- Claim the federal earned income tax credit; and
- File a New York State income tax return.
In an economy like this, these tax credits go a long way toward paying for all the little things that add up, and it is vitally important that we do all we can to help struggling families stretch budgets and make them aware of their eligibility. This tax credit not only helps families pay bills, buy clothing and maintain their homes, but it also provides a boost to local economies during tax refund season.
iOffice of New York State Governor David Paterson: