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Earned income credit (New York State)

Important for 2021

If you elected to use your 2019 earned income in calculating your 2021 federal earned income credit, you must also use your 2019 earned income in calculating your 2021 New York State and New York City earned income credit.*

*In order to use your 2019 earned income, it must be higher than your 2021 earned income.

Identification numbers

You must have a valid Social Security number for you and each of your qualifying children by the due date of the return (including extensions).

Who is eligible? 

You may be entitled to claim this credit if you:

  • did not claim the Noncustodial parent earned income creditand
  • 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 amounts calculated on your return.

Note: NYS has decoupled from federal changes made to the Internal Revenue Code (IRC) after March 1, 2020. Therefore, certain individuals who claimed the federal earned income credit may not be eligible for the NYS and NYC credits.  

For more information on qualifying for the federal credit, see the IRS EITC home page.

How much is the credit?

  • The credit is generally 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 

What are the recordkeeping requirements for self-employed individuals?

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. You'll need the following information if you're self-employed:

  • books and records showing business income earned and business expenses paid each day (the records should contain enough information to correctly determine the tax year's gross receipts, business expenses, and the purchase price of assets and inventory), and 
  • documents that support entries in the books and records, including cash register receipts, bank statements, deposit slips, canceled checks, invoices, credit card sales slips, 1099-MISC, and so on.

We will not pay the credit if you don't produce the records when requested.

To learn more about recordkeeping requirements, see DTF-215, Recordkeeping Suggestions for Self-employed Persons.

Additional information