NYC’s Enhanced Tax Credit Program Returns $280 Million to Low-Income Families: Mayor Adams
Mayor Eric Adams highlighted the success of New York City’s expanded Earned Income Tax Credit (EITC) program on Monday during the ribbon-cutting ceremony for a new federal credit union branch in Queens.
The Urban Upbound Federal Credit Union, located at 31-35B Steinway St. in Astoria, now offers “affordable” financial services to New Yorkers, including access to capital, asset-building opportunities, and comprehensive banking services.
At the event, Mayor Adams emphasized the enhanced impact of EITC, noting that in its first year, the program infused an additional $280 million into low-income communities across the city.
“We are committed to improving the lives of New Yorkers every day, and the EITC is a key part of that effort, putting money back into the pockets of working families,” the mayor said.
The first EITC expansion in nearly 20 years came to fruition in 2022 after Mayor Adams successfully advocated for it in Albany. As a result, over 746,000 New Yorkers filing their 2023 tax returns received increased benefits from the enhanced credit.
These taxpayers accessed the EITC through the city’s accessible tax preparation locations, which provided crucial assistance in maximizing their refunds. “In New York City, working people deserve a fair shot and their fair share,” Mayor Adams continued. “Two years ago, we successfully pushed Albany to expand the Earned Income Tax Credit for the first time in two decades. Thanks to these efforts, last year alone, we returned $345 million to working-class New Yorkers—a staggering 432% increase from the previous tax season.”
The average benefit for those qualifying for the NYC EITC jumped from $107 in the 2022 tax season to $462 in 2023—an increase of $355, or 332%. Overall, the enhanced NYC EITC resulted in a 432% increase in total funds received by filers, rising from $64.8 million in 2022 to $345 million in 2023.
Vilda Vera Mayuga, Commissioner of the Department of Consumer and Worker Protection (DCWP), echoed the mayor’s sentiments, noting the significant savings New Yorkers have experienced through the city’s free tax-prep services. “Our NYC Free Tax Prep program has saved New Yorkers nearly $24 million in filing fees over the past two tax seasons and has helped filers claim millions of dollars in vital tax credits like the enhanced NYC EITC,” she said.
Last year, the city also introduced free tax-prep services specifically designed for self-employed individuals, including gig workers, freelancers, and small business owners, further expanding access to essential financial resources.
Providing essential credit services to the community
The new Urban Upbound credit union branch in Astoria will also offer access to the city’s free tax preparation services under the oversight of the DCWP.
“This branch will provide essential credit services to the community and connect clients with the city’s free financial empowerment centers and NYC Free Tax Prep services,” Mayor Adams said. “These services include advice on saving, investing, and making your money work for you rather than just working for your money.”
Urban Upbound, a financial services organization supporting youth and adults in NYC public housing and other low- to moderate-income neighborhoods, co-founded by Bishop Mitchell Taylor, will extend its reach through the new branch. At the ribbon-cutting event, Taylor emphasized the importance of this new resource for the Astoria community.
“I am thrilled to stand with Mayor Adams and our partners to introduce this transformative banking resource to the Astoria community,” Taylor said. “The Urban Upbound Federal Credit Union stands as a beacon of economic empowerment and self-reliance, serving as a vital cornerstone alongside tax prep and the Earned Income Tax Credit to uplift and strengthen our community.”
Published on August 19, 2024, By The Midtown Times Photo Credit: NYC.GOV
For more information about the new credit union in Astoria, visit urbanupbound.org.
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