Nothing makes my heart drop like a piece of mail from either the IRS or New York State Department of Taxation and Finance. While my income is not large by most people’s standards I do own a couple of businesses so any type of notice from a taxing authority makes my head hurt even before I open it. So while I was cursing under my breath I opened up the envelope to find not a bill but rather a check for $350! Along the top of the notice it indicated that this check was for the “Family Tax Relief Credit.”
What is the Family Tax Relief Credit?
I assume most people just deposit money, but I had to figure out why the State of New York is paying me for absolutely no reason. From the NYSenate.gov page,
Over the next three years, each New York family with at least one dependent child and a household income between $40,000 and $300,000, will receive a Family Tax Relief credit in the amount of $350. The total tax relief for Middle Class families will be $1.23 billion over three years, beginning in 2014.
From the New York State Department of Taxation and Finance to be eligible for the Family Tax Credit you,
- were a resident of New York State for the entire year,
- claimed at least one child under age 17 as a dependent,
- had New York State adjusted gross income (line 33 of your Form IT-201) between $40,000 and $300,000, and
- had a New York State liability after credits that is zero or greater.
Look at that spread? $40K to $300K! My guess is that NYC and Long Island reps needed to hit their constituency as well.