New Yorkers are set to get some extra cash this tax season from a little-known tax credit program that was expanded last year. Mayor Eric Adams is encouraging New York City residents to take advantage of this NYC tax credit, also called the Earned Income Tax Credit, or EITC.
NYC Tax Credit: What Is It?
The EITC gives a tax break to low-income families. Although the program is federally run, it does allow the states and cities to offer more money to eligible recipients. Last year, New York City expanded this credit after nearly two decades.
Q4 2022 hedge fund letters, conferences and more
Last year, the Adams administration secured support to raise the EITC commitment from around $100 million to $250 million annually. The expanded EITC is one of the key achievements of Mayor Adams’ administration.
“This is one of the areas that we are really proud about,” Mayor Adams said in a press conference last week.
Under the NYC tax credit program, a family of four with an annual income of less than $80,000 (less than $55,000 for single-tax filers) is eligible for the credit. It is estimated that more than 800,000 residents will qualify for the EITC this year.
This year’s EITC amount is the biggest ever for New Yorkers. For example, a single parent with one child and an annual income of $14,750 or less would witness a 400% rise in EITC benefits from $187 to $933. Similarly, a couple with two children and an annual income of $25,000 will see a 200% increase from $308 to $925.
As of now, it is unclear if the credit amount will be the same next year as well because the state’s contribution is guaranteed for this year only.
Media Campaign For Earned Income Tax Credit (EITC)
To ensure more residents apply for the NYC tax credit, the Adams administration has launched a $1.5 million media campaign. Mayor Adams noted that the campaign would inform residents about the expanded EITC, as well as eligibility.
Also, the campaign would inform residents about the NYC tax credit through different media, including print, television, radio, and social media. The ads will also appear on streaming services, including Netflix and Hulu. The Mayor’s Office of Ethnic and Community Media will be responsible for managing the marketing campaign.
“Now, we are launching a marketing campaign to encourage eligible New Yorkers to take advantage of this expanded benefit,” Mayor Adams said.
The authorities are also encouraging single-filing New Yorkers, with an annual income of $56,000 or less in 2022, or families with an income $80,000 or less, to use the NYC Free Tax Prep website to file their taxes for free. Also, this tax preparation service will help taxpayers get their full refund, including valuable tax credits, such as the enhanced EITC.
“Now, thanks to our administration’s efforts, freelance workers, gig workers, and small businesses can take advantage of free tax prep, along with eligible individuals making less than $56,000 a year or families making less than $80,000,” Mayor Adams said.
