Residents of New York were reminded by the Tax Department to check whether they are eligible for Earned Income Tax Credits (EITC). If eligible, the tax refund could be as much as $8,500 in this tax season. For working taxpayers, the EITCs are refundable for New York City, New York State, and federal taxes. Nonie Manion, the Taxation and Finance's state acting commissioner, said that as the name implies, the eligible taxpayers have literally earned such a benefit. She said that all New Yorkers should check their respective eligibility and then make their due claim.
EITC and economic independence
According to Samuel D. Roberts, the bottom line can be significantly boosted by the EITC for eligible working individuals and families. Roberts is assistance commissioner, Office of Temporary and Disability. He continued on to say that the EITC is an excellent tool for lifting the working households out of the poverty line. The scheme pushes the eligible towards their economic independence. Every year sees numerous New Yorkers qualifying for EITC for first time as their personal financial situation or financial situation undergoes changes. The IRS has estimated that the lack of knowledge has made about 400,000 residents of New York to forgo their credits.
Other than the particular financial requirements. The taxpayers should satisfy a number of other criteria like the earning of wages either from self-employment or employment. They must also have valid Social Security number. Those eligible must have qualifying children who live with them for a minimum of six months within a year. The minimum age of the taxpayer must 25 or more. Only 65 years or more persons are eligible for this scheme.
Other credit schemes
If you are a New Yorker who prepare your returns online, then there is a fair chance you were asked to claim credit. Those who were deemed eligible earlier but did not claim any credit could still be eligible to submit the edited income tax return. This return will be valid for a period of a maximum of three years. Those who did not satisfy the EITC criteria are reminded by the tax department to search for other tax credits. They could be eligible for such tax credits and claim them, like the credit for child and also dependent care.
New York has the distinction of becoming the pioneer state in the US to enact a EITC for noncustodial parent. This is a refundable credit where the state provides encouragement to non-custodial parents of low income to work and also stay abreast with child support payments.