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What is the NCP EIC?

According to MARCA, the average monthly child support in the U.S. is $430 as of 2022. Paying this money each month can often create a financial strain on a parent. However, it is an obligation a person must uphold.

While many people do not pay their child support as legally required, the state of New York created a perk for those who do. The Noncustodial Parent Earned Income Credit is a tax credit that may offer financial benefits for noncustodial parents.

Credit details

The Noncustodial Parent Earned Income Credit is a state-level program that provides recognition of the financial responsibilities of noncustodial parents. It acknowledges their contributions to their children’s upbringing. The NCP EIC complements the federal Earned Income Tax Credit to extend its reach to noncustodial parents.

Credit qualifications

To qualify for the NCP EIC, the noncustodial parent must have earned income within specific thresholds, which vary annually. Individuals must be at least 18 years old and a full-year resident of the state. They must have a child who they support who does not live with them and who is under the age of 18.

People claiming the credit cannot have claimed the state earned income credit and must have had a court order for at least six months of the year for child support. Lastly, only those who are current on child support payments may claim the credit.

Amount of the credit

The amount of the NCP EIC depends on the noncustodial parent’s earned income and the number of qualifying children. The guidelines use the federal EIC to determine the amount of the credit.

Noncustodial parents should be aware of the NCP EIC and understand how it can positively impact their financial situation. Filing taxes with the inclusion of this credit can result in a reduction of the overall tax liability, providing much-needed relief to noncustodial parents who are actively fulfilling their responsibilities.