Are You Eligible for the Earned Income Tax Credit (EITC)?

Learn if you qualify and about special provisions for New York City residents.

 The Earned Income Tax Credit (EITC) is a federal tax credit designed to help low and moderate-income working individuals and families. In addition to the federal credit, many states, including New York, offer their own version of the EITC.

In order to qualify for the EITC, you must have earnedincome (subject to Social Security/Medicare or self-employment taxes) your Adjusted Gross Income (AGI) must fall within specific limits based on your filing status and number of qualifying children. For tax year 2022, these parameters are:

EITC for Tax Year 2022

Filing Status                                    Number of Qualifying Children   Maximum AGI

Single/Head of Household/Widowed                 0                                  $16,480

Single/Head of Household/Widowed                 1                                  $43,492

Single/Head of Household/Widowed                 2                                  $49,399

Single/Head of Household/Widowed                 3                                  $53,057

For married couples filing jointly (with no qualifying children) themaximum qualifying AGI is $22,610. For married couples filing jointly (with at least 1 qualifying child) the maximum AGI is $49,622.

The maximum amount of the credit is as follows:

  • No qualifying children: $560
  • 1 qualifying child: $3,733
  • 2 qualifying children: $6,164
  • 3 or more qualifying children: $6,935

Beyond these criteria for eligibility for EITC, there are additional rules about how much you can receive from it based on your income level and number of qualifying children. Generally speaking, if you meet all requirements outlined above and earn less than the AGI threshold amounts above, then you likely qualify for some amount of EITC.

Key Qualifying Rules for Federal EITC Eligibility

To be eligible for the federal EITC, you must meet the following criteria:

1.You must have earned income from employment, self-employment, or certain disability and pension benefits.

2.You must have a valid Social Security Number.

3.Your filing status must be single, married filing jointly, head of household, or qualifying widow(er) with a dependent child.

4.You must be a U.S. citizen or resident alien for the entire tax year.

5.You cannot have investment income exceeding $10,300.

6.Your earned income and adjusted gross income must be below certain limits, which vary depending on your filing status and number of qualifying children.

How to Qualify for the New York State EITC:

  1. You must be eligible for the federal EITC.
  2. You must have a New York State income tax liability, even if it is zero.
  3. Your New York State adjusted gross income must be below certain limits, which vary depending on your filing status and number of qualifying children.

How New York City Residents Can Qualify for the EITC:

Recent legislation increased the New York City earned income credit (EIC). The credit was 5% of the federal EIC. Beginning in 2022, the New York City EIC will range from 10% to 30% of the federal EIC based on a taxpayer’s New York adjusted gross income.

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).

It is important to note that the eligibility criteria for the EITC can change from year to year. To determine your eligibility and the amount of credit you may be eligible to receive, you should consult a tax professional or use tax preparation software to prepare your tax return.