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Earned income credits

Earned income credit

Who is eligible? 

You may be entitled to claim this credit if you:

  • did not claim the noncustodial parent New York State earned income credit, and
  • qualified for and claimed the federal earned income credit, or could have based on your New York recomputed Federal Adjusted Gross Income (FAGI) and recomputed earned income. (Note: These numbers will be computed on your return.)

 For more information on qualifying for the federal credit, visit the IRS at Earned Income Tax Credit (EITC).

How much is the credit?

The credit is equal to 30% of your allowable federal earned income credit, reduced by the amount of any household credit.

Is the credit refundable?

  • full-year residents—fully refundable
  • nonresidents—nonrefundable
  • part-year residents—partially refundable

The Tax Department may ask you to produce records that prove the amount of income and expenses claimed on your return. If you don’t keep records, or if the records don’t prove what you claim, you won’t receive the credit.

Recordkeeping for self-employed persons:

  • Maintain good records, which increases the likelihood of receiving the EITC.
  • Show income earned and business expenses paid each day.
  • Keep supporting books and records, as well as cash register receipts, bank statements, deposit slips, canceled checks, invoices, credit card sales slips, and Forms 1099-MISC.

Note: See Form DTF-215, Recordkeeping Suggestions for Self-employed Persons, and our Checklist for self-employed individuals.

Noncustodial Earned Income Tax Credit

Who is eligible? 

You may be entitled to claim this refundable credit if you:

  • did not claim the New York State earned income credit (EIC),
  • were a full-year New York State resident,
  • were at least 18 years of age,
  • are a parent of a child (or children) who did not reside with you and who was under 18 years old,
  • have an order in effect for at least one-half of the tax year requiring you to make child support payments payable through a New York State Support Collection Unit (SCU), and
  • have paid at least the court-ordered amount of child support during the tax year.

How much is the credit?

You may claim the greater of:

  • 20% of the federal EIC that you could have claimed if the noncustodial child met the qualifying child definition. Compute it as if you had one qualifying child without the benefit of the joint return phase-out amount (even if you had a married filing joint return); or
  • 2.5 times the federal EIC that you could have claimed if you met the eligibility requirements, computed as if you had no qualifying children. If the credit exceeds your tax liability, you can get a refund without interest.

Additional information:

You don't need to verify eligibility to claim the credit. The New York State Office of Temporary and Disability Assistance automatically verifies you.

What form do I file?

To claim this credit, complete and submit Form IT-209Claim for Noncustodial Parent. New York State Earned Income Credit.

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