By Michael V. Cusenza
A limber Mayor Eric Adams gifted himself an extended pat on the back on Monday as he highlighted the success of the enhanced “NYC Earned Income Tax Credit,” which was expanded for the first time in nearly 20 years in 2022 after Adams helped convince Albany to bolster the social safety net and expand services for the City.
In tax season 2023, the EITC put $345 million back into the pockets of New Yorkers living in some of the lowest income communities in Gotham—an additional $280 million from the previous tax season, Adams noted.
The average amount of money received by a filer who qualifies for the NYC EITC increased from $107 in tax season 2022 to $462 in tax season 2023 — an increase of $355 or 332 percent. The overall amount of money received due to the enhanced NYC EITC increased by 432 percent — from $64.8 million in tax season 2022 to $345 million in tax season 2023. Tax seasons 2022 and 2023 covered tax years 2021 and 2022, respectively.
On Monday, Adams marked these achievements by joining Urban Upbound at the grand opening of its second federal credit union branch located in Astoria. The credit union offers affordable financial services, including access to capital, asset-building vehicles, and ownership stakes to its members. These services complement Urban Upbound’s existing Financial Empowerment Center and NYC Free Tax Prep services, overseen by the City Department of Consumer and Worker Protection, including through free financial counseling to help New Yorkers improve their financial health with one-on-one support on banking, credit, debt, and savings topics, as well as free tax preparation services to help New Yorkers — including self-employed filers and small business owners — claim valuable tax credits and avoid costly tax prep fees.
Hizzoner trekked up to the State capitol in March 2023 to advocate for the enhanced EITC. He seemingly inspired Empire State lawmakers because the Fiscal Year 2023 Adopted State Budget increased the State and City match to the federal EITC for the first time in nearly 20 years. After the city committed $250 million annually to the NYC EITC, it received a one-time state payment of $100 million. The NYC EITC increased from a 5 percent match of the federal EITC levels to 10 to 30 percent depending on the filers’ income. Under the city’s expansion of this tax credit in tax season 2023, a single parent with one child and an annual income of $14,750 or less saw their benefit rise from $187 to $933 — a 400 percent increase. A married couple with two children and an annual income of $25,000 saw their New York City benefit grow from $308 to $925 under the city payment — a 200 percent increase. In its first year, the expansion of the NYC EITC helped put an additional $280 million back into the pockets of more than 746,000 New Yorkers.
