About the EITC

Q: Which states have an Earned Income Tax Credit (EITC), and in which states is the credit refundable?

A: The EITC is a federal credit given to individuals and families who have jobs, but make less than a certain amount of income. If the credit is refundable, then an applicant can get money back if the amount of the credit exceeds the amount of tax otherwise calculated. Several states offer EITCs based on the federal credit in their own personal income taxes.

State Earned Income Tax Credits in 2004

What % of Federal Credit? Refundable?

Colorado 10% Yes

District of Columbia 25% Yes

Illinois 5% Yes

Indiana 6% Yes

Iowa 6.5% No

Kansas 15% Yes

Maine 4.92% No

Maryland (1) 50% No

Massachusetts 15% Yes

Minnesota 15 to 46% depending on income and # of children Yes

New Jersey (2) 20% Yes

New York 30% Yes

Oklahoma 5% Yes

Oregon 5% No

Rhode Island 25% No

Vermont 32% Yes

Virginia (3) 20% No

Wisconsin 4% one kid,
14% 2 kids,
43% 3+ kids Yes

(1) Maryland also has a 20% refundable credit - taxpayers are allowed to choose whichever provides the largest amount.
(2) The New Jersey credit is available only to taxpayers with income under $20,000.
(3) Virginia's credit does not take effect until 2006.

Last Updated July 21, 2004

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State Earned Income Tax Credits in 2004
	What % of Federal Credit?	Refundable?
Colorado	10%	Yes
District of Columbia	25%	Yes
Illinois	5%	Yes
Indiana	6%	Yes
Iowa	6.5%	No
Kansas	15%	Yes
Maine	4.92%	No
Maryland (1)	50%	No
Massachusetts	15%	Yes
Minnesota	15 to 46% depending on income and # of children	Yes
New Jersey (2)	20%	Yes
New York	30%	Yes
Oklahoma	5%	Yes
Oregon	5%	No
Rhode Island	25%	No
Vermont	32%	Yes
Virginia (3)	20%	No
Wisconsin	4% one kid, 14% 2 kids, 43% 3+ kids	Yes
(1) Maryland also has a 20% refundable credit - taxpayers are allowed to choose whichever provides the largest amount. (2) The New Jersey credit is available only to taxpayers with income under $20,000. (3) Virginia's credit does not take effect until 2006.