Do all people eligible for the EITC participate? Q.Do all people eligible for the EITC participate? A.The IRS and Census Bureau estimate that almost 80 percent of workers eligible for the earned income tax credit (EITC) claim it. Because people eligible for higher credits are more likely to claim the credit than those eligible for lower credits, about 85 percent of potential benefits are claimed each year. Read more about Do all people eligible for the EITC participate?
How do state earned income tax credits work? Q.How do state earned income tax credits work? A.The federal earned income tax credit (EITC) provides a refundable credit to taxpayers based on their income and family circumstances (such as marital status and number of children). In 2023, 31 states and the District of Columbia additionally offer a state EITC. Most state credits are calculated as a percentage of the federal credit. Read more about How do state earned income tax credits work?
How does the earned income tax credit affect poor families? Q.How does the earned income tax credit affect poor families? A.The EITC is the single most effective means tested federal antipoverty program for working-age households—providing additional income and boosting employment for low-income workers. Read more about How does the earned income tax credit affect poor families?