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Which states have state-level Earned Income Tax Credits?
For tax year 2009, 23 states and the District of Columbia offer state-level earned income credits (EICs) for their residents. If you live in a state that has its own state EIC program and you are eligible for the federal EIC, you may claim your state's EIC by filing a state income tax return.
The states (including D.C.) that have state-level EICs for the 2009 tax year are shown in the table below. The table also shows the state EIC amount as a percentage of the federal EIC, and whether or not the state EIC is refundable.
|
State
|
% of
Federal
EIC |
Refund-
able? |
|
Delaware
|
20% |
No |
|
D.C.
|
40% |
Yes |
|
Illinois
|
5% |
Yes |
|
Indiana
|
9% |
Yes |
|
Iowa
|
7% |
Yes |
|
Kansas
|
17% |
Yes |
|
Louisiana
|
3.5% |
Yes |
|
Maine
|
5% |
Partially |
|
Maryland
|
25% |
Yes |
|
Massachusetts
|
15% |
Yes |
|
Michigan
|
20% |
Yes |
|
Minnesota
|
22%-46% |
Yes |
|
|
|
State
|
% of
Federal
EIC |
Refund-
able? |
|
Nebraska
|
10% |
Yes |
|
New Jersey
|
25% |
Yes |
|
New Mexico
|
10% |
Yes |
|
New York
|
30% |
Yes |
|
N. Carolina
|
5% |
Yes |
|
Oklahoma
|
5% |
Yes |
|
Oregon
|
6% |
Yes |
|
Rhode Island
|
25% |
Partially |
|
Vermont
|
32% |
Yes |
|
Virginia
|
20% |
No |
|
Washington
|
5% |
Yes |
|
Wisconsin
|
4%-43%* |
Yes |
|
| *Wisconsin percentages are 4% for 1 child; 14% for 2; 43% for 3+ children |
For more information about state EICs for tax year 2009, see:
Note: States may add or drop state EIC programs in future tax years.
Am I eligible for my state EIC?
In most cases, you are eligible for your state EIC if:
- you are a resident of the state
- and you are eligible for the federal EIC and file a federal tax return to claim the credit
You must file a state income tax return to claim your state earned income tax credit.
If my state does not have its own EIC, can I still get the federal EIC?
Yes, you can still get the federal EIC if your state does not offer a state EIC.
The state EIC programs are in addition to the United States government's federal Earned Income Credit. If your state does not offer its own EIC, this does not affect your eligibility for the federal EIC. Think of the state EIC as an additional bonus, which some workers receive because they live in a state that offers this tax credit to its residents.
How are state EICs calculated?
In most cases, state EICs are a fixed percentage of the federal EIC amounts. The percentages vary from one state to another, for example, 3.5% in Louisiana, 15% in Massachusetts, and 40% in the District of Columbia.
Example: Let's say you claim a federal EIC of $1000 on your federal tax return, and your state offers a refundable EIC equal to 15% of the federal EIC. Then you can also claim a state EIC of $150 (.15 x $1000 = $150) on your state income tax return. Your total EIC would be $1150 ($1000 federal + $150 state = $1150).
Are state EICs refundable?
Most states with EIC programs offer a refundable credit. With a refundable credit, if the amount of the state earned income tax credit is greater than what you owe in state income taxes, the state will pay you the difference in the form of a refund.
Two states, Maine and Rhode Island, offer partially refundable credits. With a partially refundable credit, the state will pay you the difference between the tax credit and your tax liability, but only up to a certain amount.
Only two states with EIC programs, Delaware and Virginia, have non-refundable EICs. With a non-refundable tax credit, the amount of the credit is limited to the amount you owe in taxes.
Where can I get state tax forms?
You can find links to state income tax information for all states on the Federation of Tax Administrators web site:
Click on your state on the map or on the list of states to view your state's income tax information. Please note:
- You must file your state tax return on or about April 15th, just like the federal tax return
- You can usually pick up state tax forms wherever federal tax forms are available (e.g., post offices, libraries)
- You can usually get help filling out your state tax return at VITA tax assistance sites
- You should complete your federal income tax return before filling out your state tax return
- Most state EICs are refundable, meaning you will get a refund from the state if your tax credit is more than what you owe in taxes
Useful links
These links are external links to web sites that are not part of TaxCreditResources.org. When you click on these links, you will leave our site. Click "Back" on your browser to return.
-
State Earned Income Tax Credits: 2009 Legislative Update
Detailed information about state earned income tax credits, including which states offer the credit, percentage amounts, and whether the credits are refundable. From the Center on Budget and Policy Priorities.
-
State EITC Online Resource Center
Resources pertaining to the state EITCs, including State EITC Basics and a clickable 50 State Resource Map. From the Hatcher Group, a public policy firm that helps nonprofits advocate for social change.
-
National Center for Children in Poverty
Detailed information about federal and state policies that affect the welfare of children and families. Includes:
State EIC Programs last updated on 1/27/10
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