May Put Thousands Back In Wallets
With the 2012 tax season underway, Assemblyman Mike Miller urged Queens families to be mindful of ways they can get the most out of their tax refunds.
Earned Income Tax Credits (EITCs) can give families the boost they need to make ends meet by potentially offering thousands of dollars in tax refunds.
EITCs are refundable federal, state and city tax credits created to offset Social Security taxes and help lower-income, working individuals and families keep more of what they earned. The Assembly helped create the state EITC, and as of 2002, increased the state credit to 30 percent of the allowable federal earned income credit.
“EITCs are often overlooked, but the refund you may receive from it is significant,” Miller said. “State and federal EITC refunds, as well as the New York City credit, could potentially put over $7,000 back in the pockets of qualifying families. In this tough economy, many hardworking Queens families struggle to cover day-to-day expenses-let alone have extra money to save or put aside for the future. That’s why I’m encouraging eligible households to claim their EITC tax credits before the Apr. 17 deadline.”
To be eligible for the federal and the New York State EITC, a resident must:
– have worked full or part time at some point during the past year;
– be a single or married person raising qualifying children at home;
– have income below $36,052 (or $41,132 if married) with one child;
– have income below $40,964 (or $46,044 if married) with two children;
– have income below $43,998 (or $49,078 if married) with three or more children; or
– be a worker between the ages of 25 and 65 and earn less than $13,660 (or $18,740 if married) with no children.
To be eligible for the New York City EITC, in addition to the above requirements, the applicant must be a full-year or part-year resident of New York City; claim the federal Earned Income Tax Credit and file a New York State income tax return.
In today’s economy, expenses can add up quickly, Miller noted. EITC credits can help toward paying for daily necessities and provide a boost to the economy during tax refund season because more money in the pockets of families means more money to spend locally, the assemblyman observed.
Visit the IRS website at www.irs.gov to learn more about the federal Earned Income Tax Credit and eligibility and www.nyc.gov/ html/ ofe/ html/ policy_ and_ programs/ taxcredit.shtml for information on New York City EITCs. Also visit www.tax.ny.gov for more information on New York taxes and the state EITC.