The Earned Income Tax Credit (EITC) is a refundable tax credit for people who work but do not have high incomes. Essentially, in order for someone to receive this credit at tax time, they have to have worked and they must file a federal tax return (even if they are not required to file). It is estimated that $51-70 million of the EITC goes unclaimed in Utah each year.
Frequently Asked Questions
What is the EITC?
- The Earned Income Tax Credit (EITC) is a tax credit for people who work but do not earn high incomes.
- A tax credit is a dollar-for-dollar reduction of taxes owed. EITC is a refundable credit, meaning workers can reduce their tax to zero and then receive a refund of any remaining credit. Workers keep more of what they earn!
- EITC can increase the effective wage of qualifying workers by more than $2/hour. That is money in workers pocket.