New Yorkers are compensated for part of their taxes through a special loan: what you need to know
'07.03.2023'
Nadezhda Verbitskaya
As tax season begins, Mayor Eric Adams is looking to spread the word about New Yorkers' little-known tax credit program. It was expanded last year for the first time in almost two decades, reports Gothamist.
This is the Earned Income Tax Credit, or EITC. This loan provides tax benefits to low-income working New Yorkers. Families of four earning less than $80 a year and single taxpayers earning less than $000 a year are eligible.
The program is implemented at the federal level. But both the state and the city can allocate additional funds to eligible recipients and thus increase the amount of credit for each recipient in the region.
Last year, the Adams administration secured state approval, and the city increased its EITC budget from about $100 million to $250 million a year. The state, in turn, agreed to provide a one-time payment of $100 million. This means that New Yorkers will receive more EITC than is federally mandated.
On the subject: Tax season 2023: how to file a tax return in New York for free
More than 800 New Yorkers will be able to apply for a loan
The increase in EITC for New Yorkers will be significant. For example, for a single parent with one child and an annual income of up to $14, the EITC amount will increase from $750 to $187, that is, by 933%.
To learn more, New Yorkers should call 311 or visit the website nyc.gov/getcredit.
