For tax years beginning on or after January 1, 2006, and before January 1, 2017, New York State full-year residents who are noncustodial parents and pay child support may be eligible for the noncustodial parent New York State earned income credit. This credit may be claimed instead of the New York State earned income credit. See Form IT-209, Claim for Noncustodial Parent New York State Earned Income Credit, for further information on this credit. Below is information on claiming the New York Earned Income credit in 2016 for your 2015 taxes.
New York State Noncustodial Parent Earned Income Tax Credit
You can claim this credit if you pay support pursuant to a court order for children who don’t live with you. You can claim this credit or the New York State EITC, but not both. Calculate what you would receive under each credit and choose the one that is best for you. This Earned Income Tax Credit is just one of a number of New York State initiatives to address the needs of young, low-income working noncustodial parents in an attempt to help them become more involved in the economic and social well-being of their children.
Claiming NY EITC
Earned income tax credits are for people who work and meet certain income guidelines. The amount of the credit varies, depending on your filing status, family’s earned income, and the number of qualified children. You may get money back when you file your tax return, even if you do not owe any taxes. The Internal Revenue Service (IRS), New York State, and New York City all offer earned income tax credits. A EITC money does not affect your eligibility for: Public Assistance SNAP benefits Supplemental Security Income public housing Medicare
Who qualifies for the 2015 New York EITC?
To qualify for the New York State earned income credit (NYS EIC) you must have claimed the federal earned income credit. To qualify for the New York City earned income credit (NYC EIC) you must: – have been a full-year or part-year resident of New York City; and – have claimed the federal earned income credit. Note: Because of the different methods for computing the two credits (NYS EIC and NYC EIC), if you qualify for the NYC EIC, you may end up with a NYC EIC amount even if you do not end up with a NYS EIC amount (line 16 of Form IT-215). Be sure to complete Worksheet C, New York City earned income credit, on page 3 to compute your NYC EIC. If you are a resident or part-year resident, you may qualify for a refund of any earned income credit in excess of your tax liability. Nonresidents of New York State do not qualify for a refund of the NYS EIC.
To be eligible for the Federal and New York State EITC, you must:
- Have worked full or part time at some point during the calendar year,
- Be a single or married person raising “qualified” children at home,
- Have income below *$39,131 (or $44,651 if married) – for families with one child,
- Have income below *$44,454 (or $49,974 if married) – for families with two children,
- Have income below *$47,747 (or $53,267 if married) – for families with three or more children, or
- Be a worker between the ages of 25 and 65 and earn less than $14,820 (or $20,330 if married) for families with no children.
How to claim the New York Earned Income Tax Credit for 2016?
To claim the NYS EIC, you must complete Form IT-215 using the information from your federal return, worksheets, and, if applicable, the federal earned income credit line instructions. You must file Form IT-215 with your New York State income tax return. To claim the NYC EIC, you must: • complete Form IT-215, using the information from your federal return, worksheets, and, if applicable, the federal earned income credit line instructions; • complete Worksheet C, New York City earned income credit, on page 3; and • file Form IT-215 with your New York State income tax return if you qualify for the credit(s).
Claiming the NY EITC
You must file an income tax return in order to receive the credit, even if you do not owe any taxes. Electronic filing is the easiest way to file your return and the fastest way to get your refund. If you cannot e-file, use these forms: Federal (IRS) EITC: file Form 1040 (or 1040A) and attach Schedule EITC New York State EITC: file Form IT-201 and attach Form IT-215 New York City: city residents who qualify for the NYC EITC can claim it on their New York State returns.
The New York EITC is refundable
Be sure to maintain business records throughout the year for which you plan to claim the credit. This is because a taxpayer must prove “earned income” to claim the credit. Remember, the taxpayer’s New York EITC is then reduced by the amount of the taxpayer’s New York Household Credit. The New York EITC is refundable.