News from New York State Office of Temporary & Disability Assistance

For more information contact: Michael Hayes or Anthony Farmer, 518-474-9516

Online Tools Help Working New Yorkers

Find Out What Earned Income Tax Credit Can Mean To You

ALBANY, NY (02/08/2008; 1118)(readMedia)-- The State Office of Temporary and Disability Assistance (OTDA) has launched two new web-based initiatives: a comprehensive directory of state-provided resources for working families, and an interactive Earned Income Tax Credit (EITC) estimator to show working families how valuable the credits can be to them. The “Resources for Working Families” can be found on OTDA’s web page, www.otda.state.ny.us, and the EITC estimator at www.otda.state.ny.us/main/reform/estimator.

“By getting low-income New Yorkers the supports they need, we can help keep them working and moving up the career ladder,” said OTDA Commissioner David A. Hansell said. “Through the new web page, working families can access a variety of valuable resources to help make ends meet. These resources (including tax credits, food stamps, home energy assistance, child care subsidies, and health insurance) are provided by a range of state agencies, but OTDA’s website now provides comprehensive linkage to eligibility and application information for them.”

With tax season underway, the EITC estimator is of particular importance. The Federal, State and New York City EITCs are refundable tax benefits for working people with low or moderate incomes. The credits reduce the tax burden on these workers, supplement wages, and make work more attractive than welfare.

“The EITC is, simply put, the most effective anti-poverty tool we have at our disposal as we attempt to direct families on a path to self-sufficiency,” Commissioner Hansell said. “Making sure that low-income families receive this credit, and others that they might be entitled to, can mean thousands of dollars to families and communities that need them most. And all residents – not just those who receive the credits – benefit as those dollars are recirculated in the local economy.”

Visitors to the website simply enter their annual earnings, click a button and the tool offers estimates of how much the EITC is worth to them, broken down by federal, state and New York City share (where applicable). The page also has links to other basic eligibility criteria that must be met to receive the credits.

Workers who qualify for the EITC and file tax returns can get back some or all of the income tax that was withheld during the year. They may also get extra cash back from the IRS and from New York State if their EITC is higher than the taxes they owe.

Eligibility varies, but families with two or more qualifying children can earn up to $37,783 ($39,783 if married, filing jointly) and still receive the EITC.

To claim the credits, you must file income tax forms even if you owe no money. However, you can get your taxes prepared without paying any fees by visiting a Volunteer Income Tax Assistance (VITA) site. To find a VITA site near you, call 1-800-829-1040.