State Earned Income Tax Credits: Which States Add to the EITC

What are state earned income tax credits?

State earned income tax credits are extra tax breaks that some states offer to working people with low to moderate income. They supplement the federal EITC, which means you could get money from both your state and the federal government.

Not every state has its own earned income tax credit. Some states offer credits that are a percentage of the federal EITC. Others set their own income limits and credit amounts. A few states have refundable credits, which means you can get money back even if you owe no taxes.

Which states have earned income tax credits?

[VERIFY: Complete list of states with state EITCs and whether they are refundable or non-refundable]

When you file your state taxes, you'll claim the state credit on your state tax return. The process is usually straightforward if you already qualify for the federal EITC, since the rules are similar.

How much extra money can you get?

State earned income tax credits vary widely. Some states offer credits that equal a small percentage of the federal EITC, such as 5 percent to 25 percent. Other states have set dollar amounts. The best way to find out what your state offers is to check your state's tax agency website or use a tax preparation tool.

Do you qualify?

To claim a state earned income tax credit, you usually need to:

• Qualify for the federal EITC (or in some states, meet similar income requirements)
• Live in a state that offers the credit
• File a state tax return

Income limits depend on your state and your family size. If you're not sure whether you qualify for the federal EITC, you can check on the federal EITC page.

How to claim a state earned income tax credit

The steps are simple:

1. File your state tax return in the year you earned the income
2. Claim the state earned income tax credit on the correct line of your state form
3. Your state will calculate the credit and add it to any refund you're owed or reduce the taxes you owe

You don't apply separately for the state credit. It's claimed when you file. If you use tax software or a tax preparer, they can help you claim it.

Why state credits matter

State earned income tax credits can add hundreds of dollars to your federal refund. For families with children or people working part-time, these extra credits can make a real difference. Combined with the federal EITC, state credits are a powerful way to increase your income without paying a dime to apply.

Next steps

Check whether your state offers an earned income tax credit by visiting your state tax agency's website. When you file your taxes, make sure you claim both the federal EITC and any state credit you qualify for. If you need help filing, many organizations offer free tax help to people with low to moderate income.