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Thursday, June 17, 2010

NYS Earned Income Credit Question?

In 2006 , I made income as a self-employed day care provider. I qualified for EIC. I received my Federal refund but was sent a letter from New York State asking for additional proof with regard to my dependents AND for proof showing that I earned what was stated. I sent in all documentation including receipts and records showing the amounts I was paid in cash. After review by the state, I received my state refund that was owed to me.



My question is, I am filing as a self-employed day care provider again. My income hasn%26#039;t changed much... increase of several hundred dollars in 2007. Will I have to go through the same process of having my state refund withheld and sending in the same proof again for my income or since I already went through that process before for the same business and was approved, I won%26#039;t have to bother with sending in the info this year? TIA.



NYS Earned Income Credit Question?

Sorry but there is really no way to know if you will have to provide the information again. It will probably depend on how sophisticated the NYS reporting system is but I suspect that if you came up on their radar screen before you likely will again. I would have all the information together and ready to go so you can send it as soon as they ask.

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