BILL NUMBER: S5165
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the tax law and the administrative code of the city of
New York, in relation to advance payment of the earned income credit
 
PURPOSE:
This would grant qualified workers the option to elect to receive their
earned income tax credit (EITC) through periodic payments throughout the
year rather than in a once-a-year lump.sum only.
 
SUMMARY OF PROVISIONS:
Section 1: (a)Amends the tax law and creates an advanced payment for the
earned income tax credit;
(b) Defines the earned income eligibility certificate, which shall be
furnished by the employee to the employer and certifying that the
employee will be eligible for the EITC, whether the employee has quali-
fying children, that the employee does not have an EITC certificate with
another employer, and whether or not the employee's spouse has a EITC
certificate in effect;
(c) Establishes the advanced EITC amount on the basis of the employee's
wages and in accordance with tables set forth by the commissioner of the
department of taxation and finance;
(d) Establishes that paymentsò shall be treated as payments of withhold-
ing;
(e) Establishes that advanced EITC certificates shall take effect at the
beginning of the first payroll period ending on or after the date on
which the certificate was furnished;
(f) Establishes that the commissioner shall take the necessary steps to
ensure that taxpayers with qualifying children are aware of the avail-
ability of the advanced EITC;
(g) Sets forth that excess advanced EITC payments will be recaptured in
subsequent years, however, if the taxpayer can establish that they are
requesting the advanced EITC in good-faith then such recapture provision
shall not apply.
Section 2: Establishes the effective date.
 
JUSTIFICATION:
Every year millions of New Yorkers file to claim their earned income tax
credit. For many, this is a one-time lump sum payment. received during
tax season that can help pay for food, housing, transportation, commer-
cial debt, or other debt costs. Unfortunately, for many taxpayers wait-
ing a year to receive this credit can be burdensome. Accordingly, this
receiving their tax credit the year along with their attractive way of
receiving their defray their living costs bill seeks to provide taxpay-
ers the option of in advance through period payments throughout regular
wages. For some, this might be a more credit and allowing them to better
budget and throughout the year.
 
LEGISLATIVE HISTORY:
2024: S9066 Comrie/ A3532 Zinerman
2019 - S6259C
 
EXISTING LAW:
Currently, the EITC is disbursed only in one payment after tax returns
have been filed.
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect one year after it shall have become law.