Neighborhood Legal Services, Inc.


2007 State Earned Income Credit (EIC)
1997-2007 by Neighborhood Legal Services, Inc.
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What is state Earned Income Credit?

        New York State offers a state earned income tax credit in addition to the federal credit.

Can I get this credit?

Families:

        You may be eligible to get state EIC if you meet the following:

1. you have at least one child living with you and earned less than $33,241; ($35,241 - married filing jointly);

2. you have two or more children living with you and you earned less than $37,783; ($39,783 - married filing jointly);

3. you have no children, but earned less than $12,590;($14,590 - married filing jointly).

How much can I get?

        The state EIC is equal to 30% of the Federal EIC. You may also be eligible for a tax credit if you pay child care. See your tax return for instructions.

How do I apply for the state EIC?

1. You must file for the federal EIC in order to get state EIC.
2. You must complete New York State's new IT-215 Claim for EarnedIncome Credit and attach it to your state income tax return.

Does the state EIC affect public assistance benefits?

        State EIC payments do not count as income or resources for Public Assistance purposes.

        For Food Stamps, state EIC payments do not count as income. EIC payments can count as a resource for Food Stamp purposes.

        Generally, State EIC payments do not count as a resource the month you get the check or the following month. Resources include cash on hand, money in banks or investments, personal or real property, and vehicles. If you do not want your state EIC to count as a resource, spend it within two months. No matter what you do with your state EIC, you may need to prove to the DSS that you spent the money. Please keep all of your receipts.

        An example of the way DSS would count your EIC is:

April 1-30 Receive EIC check
April/May No effect on benefits
June 1 Counts as a resource - you will need to prove that you do not have more than $2,000 to your name.

        However, under certain circumstances, state EIC payments can be excluded for 12 months. EIC will be excluded for 12 months if you participated in the Food Stamps program during the time the credits were received and you received food stamps during that 12 month period. For more information on this exclusion contact NLS.

What can I do if DSS counts my state Earned Income Credit as either income or a resource?

        If you get a notice from DSS telling you that state EIC is being budgeted against your assistance, call and request a Fair Hearing immediately. Call us as soon as possible. We will review your case and tell you how to challenge the DSS decision, or we may agree to take your case. To keep getting your present rate of benefits, you have to call for a Fair Hearing within ten days of the date on the Notice of Intent. You must ask for a Fair Hearing within sixty (60) days of the date of DSS's notice to you. Notify New York State Office of Temporary and Disability Assistance (OTDA) by telephone, fax, or mail that you want a Fair Hearing. You can write on the back of your notice the reason for requesting the hearing. If you phone, get the name of the person you speak to. If you write, send your letter by certified mail and keep a copy. The correct address is:

New York State Office of Temporary and Disability Assistance
Office of Administrative Hearings
P.O. Box 1930
Albany, New York 12201-1930

Telephone No.: 1-800-342-3334 or (716) 852-4868
Fax No.: (518) 473-6735 (you must have form from Albany)

Where can I get further information or forms?

        If you want more information on state EIC, call toll free : 1-800-225-5829.

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