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Are you a full-year or part-year New York City resident? New York offers several New York City income tax credits that can reduce the amount of New York City income tax you owe.
Types of New York City income tax credits
Who is eligible?
You are entitled to this refundable credit if you:
- were a full-year or part-year* New York City resident,
- paid child-care expenses for at least one child who was under age four on December 31,
- had recomputed federal adjusted gross income of $30,000 or less, and
- qualified to claim the New York State child and dependent care credit. (You may claim both state and city credits.)
*Partially refundable for part-year residents
How much is the credit?
The credit can be as much as 75% of the New York State credit.
Additional information
See Form IT-216, Claim for Child and Dependent Care Credit, and its instructions.
Important for 2020
If you elected to use your 2019 earned income in calculating your 2020 federal Earned Income Credit, you must also use your 2019 earned income in calculating your 2020 New York State and New York City earned income credit.*
*In order to use your 2019 earned income, it must be higher than your 2020 earned income.
Who is eligible?
You are entitled to this refundable credit if you:
- were a full-year or part-year New York City resident, and
- claimed the federal earned income credit, or could have based on your NY recomputed FAGI and recomputed earned income.
This credit is in addition to the New York State earned income credit.
How much is the credit?
The credit can be as much as 5% of your allowable federal earned income credit. Note: Part-year residents, the amount of the credit depends on your income subject to New York City tax.
Additional information
SeeForm IT-215, Claim for Earned Income Credit, and its instructions.
Who is eligible?
You are entitled to this refundable credit if you:
- had household gross income less than $200,000,
- occupied the same New York City residence for six months or more,
- were a New York City resident for the entire tax year,
- could not be claimed as a dependent on another taxpayer's federal income tax return,
- had a residence that was not completely exempted from real property taxes, and
- meet the conditions as a homeowner or renter below.
- As a homeowner, you or your spouse paid real property taxes and any rent you received for nonresidential use of your residence was 20% or less of the total rent received.
- As a renter, you or a member of your household paid rent for your residence.
Note: The New York City enhanced real property tax credit expired 12/31/2019. See Income tax forms by year to file Form NYC-208 for a prior year.
How much is the credit?
The credit can be as much as $500.
How to claim the credit
- If you file a New York State personal income tax return, claim this credit on your return by filing Form NYC-208 with your return.
- If you are not required to file a New York State income tax return, you may still claim this credit.
Who is eligible?
You are entitled to this non-refundable credit if you:
- were a full-year or part-year New York City resident,
- cannot be claimed as a dependent on another taxpayer's federal income tax return, and
- meet the income limitations for your filing status below:
| Filing status | Recomputed federal adjusted gross income | Credit amount |
|---|---|---|
| Single | $12,500 or less | up to $15 |
Married filing jointly Head of household with qualifying person Qualifying widow(er) | $22,500 or less | based on the number of dependents listed on Form IT-201, item H (Form IT-203 item I) plus one for you (and one for your spouse if Married filing joint return). To calculate your credit see the New York City household credit table 5 in the instructions for Form IT-201, or the New York City household credit table 2 in the instructions for Form IT-360.1. |
| Married filing separately | See instructions for Form IT-201 or instructions for Form IT-360.1. |
How to claim this credit
Full-year New York City residents claim this credit directly on Form IT-201, Resident Income Tax Return. Part-year New York City residents must complete Form IT-360.1, Change of City Resident Status, and attach it to their return.
Who is eligible?
You are entitled to this refundable credit if you:
- were a full-year or part-year New York City resident,
- cannot be claimed as a dependent on another taxpayer's federal income tax return, and
- had income of $250,000 or less.
How much is the credit?
- Married persons filing a joint return and qualifying widow(er): up to $125
- All other taxpayers: up to $63
How to claim this credit
- If you file a New York State personal income tax return, you must claim this credit directly on your return.
- If you are not required to file a New York State income tax return, you may still claim this credit.
Additional information
SeeForm NYC-210, Claim for New York City School Tax Credit, and its instructions.
Who is eligible?
You are entitled to this refundable credit if you:
- were a full-year or part-year New York City resident,
- cannot be claimed as a dependent on another taxpayer's federal income tax return, and
- had New York City taxable income of $500,000 or less.
How much is the credit?
The credit is a percentage of your New York City taxable income.
How to claim this credit
New York City residents and part-year residents claim this credit directly on their income tax return.
Who is eligible?
You are entitled to this nonrefundable credit if you were:
- a full-year or part-year New York City resident and
- the owner of a business, a beneficiary of an estate or trust, or a partner in a partnership whose business, estate or trust, or partnership is subject to the New York City unincorporated business tax (UBT).
How much is the credit?
The amount of credit allowed to a New York City resident or part-year resident with city taxable income of $42,000 or less is 100% of the UBT imposed. The credit decreases gradually from 100% to 23% for taxpayers with city taxable incomes of more than $42,000 but less than $142,000. For taxpayers with city taxable incomes of $142,000 or more, the credit is 23% of the UBT imposed.
Additional information
SeeForm IT-219, Credit for New York City Unincorporated Business Tax, and its instructions.
Who is eligible?
You are entitled to this nonrefundable credit if you:
- were a full-year New York City resident;
- received a pro rata share of New York City general corporation tax (GCT) paid or Unincorporated Business Tax (UBT) credit, as a shareholder of an S corporation or exempt QSSS; and
- had a city taxable income of less than $100,000.
Note: This credit expired as of July 1, 2019; only a partial credit is allowed for tax year 2019. See Income tax forms by year to file Form IT-222 for a prior year.
How much is the credit?
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The amount of credit allowed if your city taxable income is $35,000 or less is 100% of your pro rata share of GCT paid plus UBT credit. The credit decreases gradually from 100% to 0% for taxpayers with city taxable incomes of more than $35,000 but less than $100,000. For taxpayers with city taxable incomes of $100,000 or more, no credit is allowed.