Which States Offer Earned Income Credits for Taxpayers?


Quick Answer

Twenty-two states, including Connecticut, Vermont, New York, Massachusetts, Rhode Island, New Jersey, Maryland, Michigan, Wisconsin, Iowa, Illinois, Minnesota, Indiana, Nebraska, Colorado, Oklahoma, Kansas, Louisiana, New Mexico, Oregon and Washington, offer refundable EICs, while Maine, Delaware, Ohio and Virginia offer nonrefundable EICs. The District of Columbia also offers refundable EICs. People receive EIC at the local or state level, and receive credit payments equating to varying percentages of federal credit.

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Full Answer

According to the Center on Budget and Policy Priorities, states reserve EICs exclusively for employed taxpayers. These credits provide assistance to people and their families based on their household incomes. These credits help working families afford basic items for sustenance and quality of life, such as food, childcare and education for children. EICs help families with low wages maintain full-time jobs and take care of their families. According to the CBPP, this helps families remain employed and accrue finances over time. The CBPP also credits the state program, which mirrors the federal EIC program, with reducing the poverty rate in the United States; in 2013, over six million people freed themselves of impoverished status through the state EIC program. Some states set maximum EIC payments according to the number of children and dependents, ensuring payment for all taxpayers in need.

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