There are ways you can reduce your tax liability or receive a refund in New York — one way is through the Earned Income Tax Credit (EITC). This New York tax relief program can make paying for your taxes easier if you earn a low- to moderate-income and meet other eligibility requirements.
No matter where you live in New York, BC Tax is here to make sure you understand your options when you have to pay back taxes or want to reduce your tax penalties.
How Much Tax Debt Do You Have?
What Is the EITC?
The EITC can help you reduce your tax burden. The EITC is a refundable federal tax credit that can minimize your tax liability and help you take advantage of a refund. Along with the federal relief credit, there is also a New York state earned income credit available. This credit can supplement the federal relief and is based on your adjusted gross income.
Who Qualifies for the EITC?
Here’s who can qualify for the EITC:
- Individuals with a valid Social Security number for themselves and for any qualifying children before the tax return due date.
- Individuals who earned income from a part-time or full-time job.
- Individuals who didn’t claim a noncustodial parent earned income credit.
- Individuals who qualified for the federal EITC and claimed it or could have claimed it.
Is the New York EITC Refundable?
How much of this credit is refundable depends on your residency status. The credit is:
- Fully refundable to full-year residents
- Partially refundable to part-year residents
- Nonrefundable to nonresidents