Bill > A10775

This bill amends the New York state tax law to provide for the advance payment of the earned income tax credit (EITC) to qualifying employees. The key provisions are: 1. The bill increases the EITC phaseout amount for taxpayers in New York from $11,610 to $24,960, and gradually increases the EITC credit percentage from 30% in 2019 to 40% in 2021 and beyond. 2. The bill allows the state tax commissioner to provide for the prepayment of the EITC to qualifying employees, with four advance payments made during the tax year. The first three payments will be 20% of the anticipated annual credit, and the fourth payment will be an adjustment to match the actual credit due. 3. The bill requires the tax commissioner to notify eligible taxpayers and provide information about the advance EITC payments to tax preparers, accountants, and organizations that assist individuals with tax preparation. 4. The bill coordinates the advance EITC payments with the taxpayer's final tax liability, requiring any overpayments to be repaid, but providing an exception if the taxpayer can demonstrate they acted in good faith and had a reasonable expectation of eligibility. The bill takes effect immediately and applies to tax years beginning on or after January 1, 2020.