Earned Income Credit In New York
The Earned Income Credit (EIC) is a refundable federal tax credit for 2025 designed to support low- and moderate-income workers. The credit amount rises with earned income up to a threshold, then phases out, and is worth significantly more for filers with qualifying children. Workers without children can also claim a smaller credit if they meet age and income requirements.
New York State offers its own Earned Income Credit equal to 30% of the federal EIC amount, and New York City residents can claim an additional NYC EIC worth up to 10% of the federal credit. This stacking of federal, state, and city credits makes the combined benefit especially valuable for New York City residents earning wages, tips, or self-employment income.
To qualify, filers must have earned income and meet federal adjusted gross income limits, which vary by filing status and number of children. New York residents should ensure they file both a federal return and a New York State IT-201 to capture all three layers of the credit. Keeping records of all earned income sources, including gig work and part-time jobs, is important for maximizing the credit.