--- title: "NYC Earned Income Credit: Who Gets It and How | MCC" description: "The New York City earned income credit builds on the federal credit and is refundable. Learn who qualifies, why part-year residents get a smaller share…" url: "https://mcc-solutionsnj.com/bookkeeping/guides/nyc-earned-income-credit-who-gets-it" --- Bookkeeping guide · Updated October 28, 2026 # NYC Earned Income Credit: Who Gets It and How Low and moderate income workers in New York City may get a city credit on top of the federal and state earned income credits. It is easy to miss because it appears on a New York form, not on your federal return, and because it only exists if you qualify for the federal credit first. By [Matthew Coleman](/about), MCC Solutions Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [Void vs delete a transaction](/bookkeeping/guides/voiding-vs-deleting-transactions) · [NJ 1099 contractor rule (ABC test)](/bookkeeping/guides/nj-independent-contractor-rule-abc-test-2026) · [Trial balance explained](/bookkeeping/guides/trial-balance-explained) **Free tools:** [Net profit margin calculator](/bookkeeping/net-profit-margin-calculator) · [How many sales do I need to break even?](/bookkeeping/break-even-calculator) [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) ## It starts with the federal credit The city credit is figured as a percentage of the federal earned income credit. If you do not qualify for the federal credit, there is nothing to build on. The federal credit has rules about income, filing status, age for filers without children and a valid Social Security number, so confirm those first. The percentage is not a single flat number. It steps down as your income rises, and the schedule is published in the New York instructions for the year you file. ## The state credit sits in the middle New York State has its own earned income credit that is also figured from the federal one, and the city credit is a further layer for people who lived in the city. A person can therefore see three credits tied to the same federal figure: federal, state and city. Each is claimed on a different line or form. Missing the state or city form is the usual reason someone gets only the federal part. ## Who counts as a city resident You count as a city resident if New York City was your home for the period in question. A full-year resident uses the full-year rules. A person who lived in the city for only part of the year uses the part-year rules, which scale the credit to the share of income earned while a city resident. Someone who lives in New Jersey and only works in the city is not a city resident. They do not get the city credit, and they do not pay the city's resident income tax either. ## Part-year residents and the share If you moved into or out of the city during the year, the credit is reduced to the share of your income earned during the months you lived there. Moving in March means most of the year's income counts toward the city share, while moving out in March means very little does. The instructions show how that share is worked out, and you may need your city residency dates and income by period. Keep them handy. ## It is refundable A refundable credit can be paid to you even when it is larger than the tax you owe. That is why a filer with a small income tax bill can still see a refund from the city credit. The rules for that part are in the form instructions, and they can differ for part-year filers. Software can calculate the city credit when you enter where you lived and when. Kestrel Tax does so for its supported years and reminds you to attach the form. Always compare with the current official instructions. ## Mistakes that cost people the credit The common ones are not claiming the federal credit when eligible, skipping the New York form, using the wrong residency dates, and leaving out a spouse's Social Security number. A childless filer should also check the age range, since the federal credit for filers without children has a minimum and a maximum age. ## Common questions **Do I need a child to claim it?** No. The federal credit has a version for workers without children, with age and income limits. The city credit follows the federal result. **Where is the credit claimed?** On a New York form attached to your state return, which the state instructions name each year. It is not claimed on the federal return. **Is the credit taxable?** Earned income credits are generally not counted as taxable income, but confirm the treatment in the current instructions. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) More guides - [W-2 With Two States: NJ and NY Boxes 15 to 20](/bookkeeping/guides/w-2-with-two-states-nj-and-ny-what-the-boxes-mean) - [NJ Resident Working in NYC: Do You Owe City Tax?](/bookkeeping/guides/nj-resident-working-in-new-york-city-do-you-owe-city-tax) - [Mid-Year Move Tax Checklist for New Jersey and New York](/bookkeeping/guides/mid-year-move-tax-checklist-new-jersey-and-new-york) - [Earned Income Credit With No Children: Age and Rules](/bookkeeping/guides/earned-income-credit-with-no-children-age-and-income-rules) Free tool - [Bookkeeping health check](/bookkeeping/health-check) Related - [Kestrel Tax software](/bookkeeping/mcc-tax-1040-software) - [How to read a profit and loss statement](/bookkeeping/guides/how-to-read-a-profit-and-loss-statement) [All guides](/bookkeeping/guides) Reach small business owners, freelancers and bookkeepers who read this guide: [advertise here](/advertise#bookkeeping). Do it yourself ### NJ-NY Two-State Worker Kit Log where you work each day, so the New York share of your pay is backed by a record. [See what's inside ($19)](/toolkits/nj-ny-two-state-worker-kit) [Free sample](/toolkits/nj-ny-two-state-worker-kit#free-starter)14-day full refund Tallyfinch ### Books you keep on your own computer Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software) ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)