City officials estimate that over 800,000 New York residents will benefit from the tax credit program this year.
Tax Credit Program Will Give Extra Cash For 800,000 Eligible New Yorkers This Tax Season (PHOTO: Gothamist)
Tax Credit Program This Year
Mayor Eric Adams is promoting a tax credit program that was expanded last year for the first time in nearly two decades, marking one of his key policy accomplishments for low-income New Yorkers. Adams has positioned himself as a mayor committed to supporting the city’s working class, and it was the theme of his recent State of the City address.
The Earned Income Tax Credit, known as EITC, is a tax credit program that gives tax breaks to low-income working New Yorkers. Families of four making less than $80,000 annually and single-tax filers earning less than $55,000 are qualified for the tax credit program. The program is federally managed, but both the state and city can chip in additional money for eligible recipients. The Adams administration has secured state approval last year to let the city expand its EITC commitment from around $100 million to $250 million annually and it was agreed to contribute in a one-time payment of $100 million.
City officials calculate over 800,000 residents will qualify for the tax credit program this year. The number of credits for eligible residents is the biggest it has ever been because the state’s contribution is only guaranteed for this year, it is unclear if it will ever be this large going forward. The enlargement in the benefit will be sizable.
The marketing Campaign Promotes Both Tax Credit Program And Free Tax Preparation Services
As part of a $1.5 million marketing movement, the city will promote both the tax credit program and its free tax preparation services. The ads will arise at the beginning of Saturday across a range of platforms, including television, radio, social media platforms, and billboards. They will also conduct streaming services on Netflix and Hulu. Experts say that an extra tax credit comes at a critical time, as the federal government has pulled back its emergency pandemic aid in the form of the expanded child tax credit and extra food stamps.
“The data indicates that economic difficulty is far beyond what it was before COVID,” said James Parrott, director of economic and fiscal policies at the New School’s Center for New York City Affairs. Parrott praised Adams for both extending the tax credit program as well as establishing a public awareness campaign that encourages eligible New Yorkers to reach out to the city for adding in filing their taxes and getting the credit.
