Types of New York City income tax credits
New York City child and dependent care credit
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 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
- Form IT-216, Claim for Child and Dependent Care Credit, and itsinstructions
New York City earned income credit
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.
This credit is in addition to the New York State earned income credit.
How much is the credit?
The credit ranges from 10% to 30% of the federal earned income credit based on a taxpayer's New York adjusted gross income. Note: Part-year residents, the amount of the credit depends on your income subject to New York City tax.
Additional information
- Form IT-215, Claim for Earned Income Credit, and itsinstructions
New York City household credit
Who is eligible?
You are entitled to this non-refundable credit if you:
- werea 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 | Federal adjusted gross income | Credit amount |
|---|---|---|
| Single | $12,500 or less | up to $15 |
Married filing jointly Head of household with qualifying person Qualifying surviving spouse | $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 IncomeTax Return. Part-year New York City residents must complete Form IT-360.1, Change of City Resident Status, and attach it to their return.
New York City pass-through entity tax credit (NYC PTET)
Who is eligible?
You are entitled to this refundable credit for tax years beginning on or after January 1, 2022, if:
- you received a NYC PTET credit from an electing entity that you are a partner, member, or shareholder in; and
- you are an individual, estate, or trust subject to tax under Article 22.
How much is the credit?
The credit is equal to your direct share of the NYC PTET, which your electing entity reported. If you receive more than one NYC PTET credit, add the credits together on your personal income tax return.
You must make an addition modification to your federal adjusted gross income on your New York State personal income tax return for an amount equal to the amount of the NYC PTET credit you are claiming. See the modification code instructions for code A-222 in Form IT-225-I, Instructions for Form IT-225, New York State Modifications, for more information.
Additional information
- Form IT-653,Pass-Through Entity Tax Credit
- Form IT-225, New York State Modifications, and its instructions
- New York City pass-through entity tax (NYC PTET)
- TSB-M-22(1)C, (1)I, New York City Pass-Through Entity Tax
New York City school tax credit (fixed amount)
Who is eligible?
You are entitled to this refundable credit if you:
- werea 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 surviving spouse: 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.
New York City school tax credit (rate reduction amount)
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.
New York City unincorporated business tax credit
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
- Form IT-219, Credit for New York City Unincorporated Business Tax, and its instructions
