State and Local EITC

Don’t overlook the state credit!

If your clients qualify to claim EITC on their federal income tax return, they may also be eligible for a similar credit on their state or local income tax return. Twenty-two states, the District of Columbia, New York City, and Montgomery County, Maryland offer their residents an earned income tax credit.

Click here for a list of states and local governments with EITC. Questions about eligibility or how to claim EITC on a state or local return should be directed to your state/local tax authorities.

Fed/State Activities

The IRS, state / local taxing authorities, and community organizations work together to increase awareness of, and participation in, both federal and local EITC.  This is done through a combination of the annual EITC Awareness Day, publicity throughout the year, and through web sites of scores of organizations. Specific objectives of IRS activity with states are to:

• Partner with all states to improve EITC participation, whether the states offer EITC or not.
• Partner with states that offer a state EITC to develop joint EITC marketing and outreach campaigns, and to support volunteer return preparation.
• Promote the use of joint Fed/State EITC products, and the EITC Marketing Express, for consistent messaging and joint promotions.
• Promote joint Fed/State campaign messages, e.g., “Life's a little easier with EITC”

The following are some private sites that provide state-related EITC information (as of December 2008)

National Center for Children in Poverty - State information page

Tax Credit Resources--State EITC

Center on Budget and Policy Priorities 

 Revised 10/10/2012