Everything You Need to Know About Taxes on the Excluded Workers Fund
The Fund Excluded Workers’ Coalition, with support from Congressional Representatives and Senator Chuck Schumer, has made an enormous effort to get a straight answer from the IRS regarding the question of whether Excluded Workers Fund payments will be taxable on the federal level. As many of our readers already know, state taxes were proactively withheld from the EWF payments.
The IRS has indicated that EWF payments will likely be subject to federal taxes. The specific rate of taxation, however, has not yet been indicated.
The NYS Tax Department has shared the following advice regarding the issue:
Although the New York State Tax Department has not had the opportunity to discuss with the Internal Revenue Service whether the excluded wage benefit is taxable income, the Department, after reviewing relevant federal law and guidance, has concluded that it is likely that the excluded wage benefit would be treated as taxable income by the Internal Revenue Service. Therefore, individuals receiving money from the excluded workers fund should save at least 5% of the benefits to make sure that they have enough to pay for any federal tax they may owe on the money received from the fund. Alternatively, Individuals could determine how much of the benefit to save by using the federal income tax withholding tables.
TCWC advises EWF recipients that the payments will more than likely be subject to federal income taxes. We recommend that recipients save at least 5% of benefits to cover federal taxes. This information is advice; we strongly recommend that you work with a tax professional to determine exactly how much you will owe in federal taxes.
Below is a list of the NYS Department of Tax and Finance’s trusted tax preparation partners. For help finding additional Tax preparation resources, please contact Cecilia Perez at cecilia.perez.ewf@gmail.com or send us a message on our website.
Virtual Support
Single Stop
100% Virtual Tax Preparation – Make appointments at: http://bit.ly/SingleStoptax
Staff Member: Arlene Sabdull
Associate Director, Financial Programs
123 William Street, Suite 901
New York, NY 10038
P: 212-480-2870 x 132
M: 646-276-0691
Bethpage Federal Credit Union
The Bethpage Virtual VITA program utilizes online software and technology to connect the Taxpayer and Tax Preparer. Taxpayers will need to complete the “Bethpage Virtual VITA Application” through www.lovebethpage.com/vita in order to be scheduled for a Virtual VITA intake appointment.
Staff Member: Ever Martinez
Community Development Relationship Manager
899 S. Oyster Bay Road, Bethpage, NY 11714
P: 516-349-6712
F: 516-349-6798
In Person Support
Ariva
69 E 167th Street
Bronx NY 10452
Ariva is the top free tax preparation community-based organization in the Bronx, with 13 sites, including three year-round locations and 20 mobile tax days. Ariva is also an EWF funded partner. Ariva provide services in English and Spanish. For more details visit: https://ariva.org/tax/
Staff Member: Maribel Montilla – Tax Program Director
Office: (718) 690-9868
Cell: (929) 374-9138
Fax (718) 509-9295
Staff Member: Libretta Champagne – EWF Site manager
Office (718) 292-2983 ext 1001www.ariva.org
