Press Releases
For Release: Immediately 2/22/10
SAYWARD: TAX SAVING OPPORTUNITIES - BILLIONS IN TAX CREDITS AVAILABLE TO NEW YORKERS
Assemblywoman Teresa Sayward is reminding residents to take advantage of a multitude of family-friendly tax credits that lower tax bills and increase refunds. In 2008, taxpayers who took advantage of the Earned Income Tax Credit (EITC), Child and Dependent Care Credit, Empire State Child Care Credit, Household Credit and College Tuition Credit, received over $2 billion from the state in tax breaks or refunds.
While many people have taken advantage of these credits, millions of taxpayers still do not claim every one available to them. Many may also have the opportunity to file their federal tax forms electronically, free of charge. To find out more about IRS Free File, go to www.irs.gov/efile and click “Free File” on the left column.
“There are many opportunities to save and cut costs when filing taxes, and many do not take advantage of these tax breaks,” said Sayward. “I’d like to encourage all New Yorkers who think that they may be eligible to look into these credits. I don’t think there’s anyone out there that wouldn’t like a bigger tax refund.”
Below is information about the most popular tax credits available to New York state families.
Earned Income Tax Credit:
This refundable credit is available to working families with incomes up to $43,279 ($48,279 for married taxpayers filing jointly), depending on the number of children in the household. Taxpayers with no dependent children can earn no more than $13,440 ($18,440 for married taxpayers filing jointly). To qualify for these credits you must have worked at least part of the year.
Child and Dependent Care Credit:
Working parents who pay for child care may be able to claim some of those expenses as a credit on their federal and state tax returns. The credit equals 110 percent of the federal child care credit for taxpayers with incomes under $25,000. Percentages ranging from 110 percent down to 20 percent apply for those whose incomes range from $25,000 to $65,000.
Empire State Child Credit:
Resident taxpayers may also claim a refundable credit equal to the greater of $100 times the number of children ages 4-16 who qualify for the federal child credit or 33 percent of the allowed federal child credit for children ages 4-16.
College Tuition Credit/Itemized Deduction:
If you, your spouse or your dependent(s) were a student at an institution of higher education, you may be entitled for the refundable college tuition credit. The credit is up to $400 per eligible student and available to full-year New York state residents.
Household Credit:
If you are married, head of household or a qualifying widow or widower with a dependent child, your income is $32,000 or less and you can’t be claimed as a dependent on another person’s federal return, you can qualify for a Household Credit of up to $75, plus up to $15 for each exemption on your federal return. Single filers with incomes up to $28,000 also can qualify.
You can learn more by requesting free publications from the Tax Department by calling toll-free (800) 462-8100 or visiting www.irs.gov.
