2015, 2016 Wisconsin Earned Income Credit WI EITC

The Wisconsin earned income credit is a special tax benefit for certain working families with at least one qualifying child. The earned income credit is refundable. This means that even workers who did not earn enough wages to have Wisconsin taxes withheld can receive the credit.

 

What is the Wisconsin Earned Income Credit?

The Wisconsin Earned Income Credit, like the federal EIC, is a special tax benefit for workers who earn low or moderate incomes. It lowers their taxes, supplements their wages, and makes work more attractive and affordable. Families with children who qualify for the federal EIC are automatically eligible for the Wisconsin EIC. Qualifying persons who file federal returns get back some or all of the federal income tax withheld from their pay during the year. Like the federal EIC, the Wisconson EIC is refundable. This means that even workers whose earnings were too small to have taxes withheld can get the EIC.

How to Calculate 2016 Wisconsin EITC?

The credit is calculated based on the number of children claimed as dependents by the filer. For tax year 2011, filers with one child may claim four percent of the federal credit. Filers with two children may claim 11 percent, and filers with three or more children may claim 34 percent of the federal EITC.

 

How to Qualify for Wisconsin Earned Income Credit?

To qualify for Wisconsin earned income credit for 2015, you must meet all of the following requirements:

  • Qualify for the federal earned income credit.
  • Have at least one qualifying child. The federal definition of a “qualifying child” applies for Wisconsin purposes.
  • Be a full-year Wisconsin resident.
  • File a joint return if you are married.Exception: You may claim the credit on a separate return if:
    • You paid more than half the cost of keeping up a home for the year,
    • Your spouse did not live in that home during the last six months of the year, and
    • The home was, for more than half of the year, the principal home of your child for whom you are entitled to claim an exemption for federal income tax purposes.

 

What is the procedure for claiming the Wisconsin EIC?

  • Claimants must file a Wisconsin tax return to receive the state EIC, even if no taxes are owed;
  • File state Form 1 or 1A.
  • The amount of the claimant’s federal EIC is needed to calculate the state EIC.  For filers with one qualifying child, the state EIC is 4% of the federal EIC; for filers with two qualifying children, the state EIC is 11% of the federal EIC; for filers with three or more children, the state EIC is 34% of the federal EIC;
  • If your tax return shows you owe taxes, you subtract your EIC credit and you will owe less or get money back.  If you owe no taxes, but qualify for the EIC, you will get a refund check for your EIC amount.
  • You can file state tax returns on-line, at no cost, through the Department of Revenue website

 

Wisconsin Homestead Credit

The Wisconsin Homestead Credit (HC) is available to low income Wisconsin residents who rent or own their home. The credit may lessen the impact of property taxes and rent on individuals with lower incomes. Working individuals may be eligible for up to a maximum tax credit of $1,168 if they were a Wisconsin resident for all of 2013 and can provide copies of rent receipts (if renting) or property tax receipt (if own home) and their family income was less than $24,680 for 2013.

 

Claiming Wisconsin Homestead Credit

The following terms apply to individuals who received a W-2 payment (Community Service Job [CSJ], W-2 Transition [W-2 T], At Risk Pregnancy [ARP], and/or Custodial Parent of an Infant [CMC]) in tax year 2013:

  • If an individual received any amount of a W-2 payment in 2013 for any month in 2013, the individual’s property taxes and rent are reduced by one-twelfth for each month the individual received payment; or
  • If an individual received a W-2 payment for all 12 months of 2013, the individual is not eligible for the homestead credit.

For more information on the HC, refer to the Homestead Credit.

 

How is the Wisconsin earned income credit calculated?

The Wisconsin earned income credit is based on a percentage of the federal credit.

Number of Qualifying Children Percentage of Federal Credit for 2015
0 No credit available
1 4% of federal credit
2 11% of federal credit
3 or more 34% of federal credit

The EIC — and other tax credits — do not count as income in determining eligibility for benefits such as W-2, Medicaid, Food Stamps, SSI, or public or subsidized housing.

 

2015, 2016 Washington Earned Income Tax Credit EITC

In 2008, the Legislature passed the WFTR. This rebate works like a state-level EITC as it is calculated as a percentage of a family’s federal EITC benefit. Because the Legislature never appropriated the necessary funding, the law was suspended in 2010 before implementation could take place.

 

WFTR and Washington EIC

Our WFTR would provide an additional benefit to low- and moderate-income families, worth 10 percent of their federal EITC benefit. The Department of Revenue estimates this would help more than 500,000 families, mostly in rural and economically struggling areas of the state. The department estimates that the average additional state benefit to a Washington family would be $223.

 

Washington Earned Income Tax Credit

In 2008, Washington state became the first state without an income tax to implement an earned income credit. Washington state legislature recognized the burden that state sales taxes were placing on low income families and in order to help alleviate this burden, the state legislature enacted the EITC program for sales taxes. The program, once fully implemented, will allow low income families to receive a refund of sales taxes equal to ten percent of their federal EITC amount or $50, whichever is greater.

 

What is the WFTR?

The WFTR will be calculated as a flat percentage of the EITC. A rebate set at ten percent of the federal EITC would provide a tax break of up to $500 for lower income working families. In total it would return over $60 million annually to working families in Washington.

Other States with Earned Income Tax Credit

Twenty three states (including the District of Columbia) have a state EITC that is administered as a percentage of the federal credit. In these states, piggybacking on the federal EITC has proven to be a very effective way to provide additional support to lower income working families. Washington is the first state in the nation without an income tax to enact an EITC and will be a model for other states.

2016, 2016 Virginia Earned Income Tax Credit EITC

The Credit for Low Income Individuals (CLI) is a tax credit for people who work hard and don’t make much money. You must meet certain requirements to be eligible. If your total family Virginia adjusted gross income is less than the amounts established under federal poverty guidelines, or the United States Department of Health and Human Services Poverty guidelines, you may qualify to claim the CLI.

 

Virginia CASH (Creating Assets, Savings, and Hope)

A team headed by the Virginia Community Action Partnership, along with the Virginia Department of Social Services and the Internal Revenue Service, is working to raise statewide awareness of the EITC program through the Virginia CASH (Creating Assets, Savings, and Hope) Campaign. Beginning in January 2006, localities throughout Virginia will offer free tax preparation services by certified volunteers.

 

Qualifying for the Virginia Earned Income Credit

You may qualify to claim the Credit for Low Income Individuals (CLI) if your total family Virginia adjusted gross income is below federal poverty guidelines. Family Virginia adjusted gross income includes the total Virginia adjusted gross income for you, your spouse and your dependents, even if they do not file their own Virginia returns. If you and your spouse file separate returns, the family income includes income from your return, your spouse’s return and any income for any dependents claimed on either return. Only one spouse may claim the CLI. For more information on computing Virginia adjusted gross income, refer to Form 760.

 

Maximum Virginia Earned Income Tax Credit Amount

The maximum credit you may claim is $300 for each personal and dependent exemption claimed on your Virginia return. Unlike the Federal Earned Income Credit, this credit is not refundable. The amount of CLI claimed may not exceed your tax liability. Excess credit amounts may not be carried forward to future years.

 

Who can claim Virginia EITC?

You may not claim this credit if you, your spouse or any dependent listed on your return claimed one or more of the following exemptions, deductions or subtractions:

  • subtraction for wages or salaries received by members of the Virginia National Guard
  • subtraction for up to $15,000 of military basic pay for military service personnel on extended active duty
  • subtraction for up to $15,000 of salary for a federal or state employee whose annual salary is $15,000 or less
  • additional personal exemption for blind or aged taxpayers (NOTE: If you qualify for both the CLI and an additional exemption for blindness, it may be to your advantage to claim the CLI, rather than the additional exemption).
  • age deduction

In addition, you cannot claim this credit if you were claimed as a dependent on another taxpayer’s return.

 

Claiming Virginia Earned Income Tax Credit

Claiming the credit is a two-step process. First, you must determine if you qualify for the credit. If so, then you must compute your allowable credit. Use the following table to see if you qualify for the CLI:

 

Income Requirement for Virginia EITC

If the number of eligible exemptions is: Your family Virginia adjusted income must be less than
1 $11,490
2 $15,510
3 $19,530
4 $23,550
5 $27,570
6 $31,590
7 $35,610
8 $39,630

For each additional exemption over 8, add $4,020 to the guidelines. Eligible exemptions include personal exemptions only – you may not claim the CLI if you also claim additional exemptions for blindness or age.

 

Qualifying for Virginia EIC

If you qualify for the credit, multiply the total number of personal exemptions claimed on your return by $300. The credit cannot be more than your total tax as shown on line 17 of your income tax return, Form 760. Use Schedule ADJ to report the credit.

 

Virginia Earned Income Tax Credit

The Virginia Credit for Low Income Individuals is based on the amount of a taxpayer’s federal EITC and isnot refundable.

  • State:  Virginia
  • Percentage of federal credit:  20%
  • Is it refundable?  No
  • Income eligibility criteria same as federal credit?  No.  Eligibility for the Virginia credit is based on family size and whether a taxpayer’s Virginia adjusted gross income is equal to or less than the federal poverty level for the taxpayer’s family size.  For a family of four that means an Virginia AGI of $20,050 or less.

More Information on claiming Virginia EITC

Low-income working families in Virginia pay more in state and local taxes as a share of their income than high-income Virginians. And the contrast is pretty stark. Households making under $20,000 a year pay, on average, almost 9 percent of their income in state and local taxes. But households that earn at least $479,000 a year pay under 5 percent of their income in state and local taxes.

2015, 2016 Vermont Earned Income Tax Credit EITC

Working Vermonters with income under $53,267 may qualify to get a credit or refund on your taxes. It’s called EITC. You can get EITC even if you don’t owe taxes. If you receive the VT EITC and have dependent children then you likely qualify for 3SquaresVT – a nutrition program that helps you buy more food. When kids get 3SquaresVT benefits, they also get free school meals.

 

What is the Vermont EIC?

Vermont’s income tax, on the other hand, is one of the most progressive in the country. Thanks to the EITC and other credits, the poorest fifth of Vermont taxpayers—with income less than $20,000—receive slightly more money than they owe in income taxes. For the top 1 percent, Vermont income taxes are equal to 5.2 percent of income. Overall, however, Vermont’s tax system is still regressive: the wealthiest Vermonter’s pay a lower percentage of their income in taxes than low and middle income Vermonters.

 

More Information about Vermont Earned Income Tax Credit EITC

The purpose of the Vermont Earned Income Tax Credit (EITC) is to help Vermonters remain in the workforce. Any taxpayer entitled to a federal earned income tax credit may claim a Vermont EITC. For more information about this tax credit, contact the Vermont Department of Taxes.

Credit Amount: The credit amount is 32% of the federal credit on income earned or received in Vermont.

Credit Limitation: You must be qualified for the federal EITC. This is a refundable credit.

 

How to Claim Vermont EITC

To claim EITC in Vermont, you must:

  • Meet federal EITC requirements
  • Be a resident or part-year resident of Vermont
  • Have qualifying children or
  • Be at least age 25 but under age 65 at the end of the tax year for which you are filing

If you do not have qualifying children and do not meet age requirements, you are not eligible for the Vermont EITC.

EITC and 3SquaresVT (food stamps)

Families who get the Vermont EITC and have dependent children qualify for 3SquaresVT (food stamps) without having to meet the income test that is usually required. Qualifying for 3SquaresVT also makes children eligible for free school meals. This flyer explains more (link is external).

2015, 2016 Rhode Island earned income tax credit EITC

RI Earned Income Credit: Enter amount from page 2, RI Schedule EIC, line 46. If you are claiming a Rhode Island earned income credit, you must complete and attach RI Schedule EIC located on page 2 to your RI-1040.

 

Rhode Island used to have an EITC

Rhode Island used to have an EITC equal to 25 percent of the federal credit; however only a portion of the credit was refundable. During the 2006 legislative session, the Rhode Island Legislature successfully expanded the state’s refundable portion of the EITC from 10 percent to 15 percent of the state credit. In February 2011, Senate Bill 0191 was introduced to make the credit completely refundable.

 

No More Rhode Island Earned Income Tax Credit

2015, 2016 Oregon Earned Income Credit EITC

Claiming Oregon Earned Income Tax Credit

Oregon’s EITC was scheduled to sunset in 2013. In his budget, the governor proposed to extend the EITC for another six years and raise it from 6 percent to 8 percent of the federal EITC.  In Oregon, the process for creating or extending credits comes at the end of the legislative session after the rest of the budget is completed.

 

What is the Oregon EITC?

The Earned Income Tax Credit, sometimes called EIC, is a tax credit to help you keep more of what you’ve earned. It is a refundable federal income tax credit for low to moderate income earning individuals and families. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

 

Qualify for Oregon Earned Income Credit

If you qualify for the federal Earned Income Tax Credit (EITC), you can also claim the Oregon Earned Income Credit (EIC). Your Oregon EIC is 8 percent of your federal EITC if you’re a full-time resident, and 8 percent of your federal EITC multiplied by your Oregon percentage if you’re a part-year or nonresident.

2015, 2016 Oklahoma earned income tax credit EITC

The Earned Income Tax Credit (EITC) is a credit for lower-income individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of Social Security taxes and to provide an incentive to work.

 

What is the Oklahoma EITC?

The credit reduces the amount of federal tax owed and can result in a refund check. According to 2000 IRS tax return data for Oklahoma City, 51% of filing taxpayers were eligible for the credit. The IRS estimates that approximately $18.5 million in refunds were not received in Oklahoma City due to lack of knowledge of the program. If all of those eligible took advantage of the EITC, over $86 million would be paid to our working citizens in Oklahoma City.

What is Oklahoma Adjusted Gross Income?

Complete line 28 unless your Oklahoma Adjusted Gross Income (Form 511, line 7) is less than your Federal Adjusted Gross Income (Form 511, line 1). If your Oklahoma Adjusted Gross Income is less than your Federal Adjusted Gross Income, complete Schedule 511- F* to determine the amount to enter on line 28. You are allowed a credit equal to 5% of the earned income credit allowed on your federal return. Enclose a copy of your federal return.

 

How to claim Oklahoma earned income tax credit EITC

If you qualify for the Federal Earned Income Credit, you qualify for the Oklahoma Earned Income Credit. Enter 5% of the Federal Earned Income Credit on Form 511, line 28 (do not complete schedule 511-F).

 

EITC in the Oklahoma

The City of Oklahoma City is supporting efforts by the IRS to increase public awareness and use of the EITC, focusing on: • Assisting the IRS in working with local businesses, education and non-profit organizations; • Providing information to the community at large; • Providing information to persons in targeted lower-income neighborhoods; and • Providing information to City of Oklahoma City employees The Oklahoma Office of Personnel Management (OPM) is joining the City of Oklahoma City in support of IRS efforts. Attached is additional information and an EITC eligibility checklist that will be distributed to OPM employees. Please feel free to copy this information for use in your respective agencies.

How much is the Oklahoma earned income tax credit?

• Up to $2,100 from the federal Child and Dependent Care Tax Credit and up to $420 from the Oklahoma Child Care Tax Credit. • Up to $6,242 from the federal Earned Income Tax Credit and up to $312 from the Oklahoma Earned Income Tax Credit. • Up to $1,000 per child from the federal Child Tax Credit and up to $50 per eligible child from the Oklahoma Child Tax Credit.

2015, 2016 Ohio earned income tax credit EITC

The Ohio EITC is patterned after the federal EITC, which Republican President Gerald R. Ford signed into law in 1975. President Ronald Reagan expanded the federal EITC; he called it “the best anti-poverty, the best pro-family, the best job-creation measure to come out of Congress.” In 2013, the average amount gleaned by working but low-income taxpayers nationally because of the EITC was $2,300, the Internal Revenue Service reported.

 

What is the Ohio Earned Income Tax Credit?

So, for example, if an Ohioan is entitled to a $2,300 federal EITC, he or she might be entitled to a $230 Ohio EITC (that is, 10 percent of that person’s federal EITC).Taxpayers who qualify for the federal earned income credit (FEIC) may take an Ohio earned income credit equal to 5% of the taxpayer’s FEIC with limitations.

The Earned Income Tax Credit (EITC) and Volunteer Income Tax Assistance (VITA)

The Earned Income Tax Credit (EITC) and Volunteer Income Tax Assistance (VITA) Locations are two vital resources that are underutilized. The EITC when coupled with the use of a VITA location and financial literacy is a proven strategy to help low-income individuals raise themselves out of poverty

 

How much is the Ohio Earned Income Credit (EITC)?

10 percent of the federal credit, limited to 50 percent of liability for Ohio Taxable Income above $20,000. For taxable years beginning on or after Jan. 1, 2013, a nonbusiness, nonrefundable earned income credit is available for taxpayers who were eligible for the federal earned income tax credit (EITC) on their federal tax returns. The Ohio earned income credit is equal to 5% of the taxpayer’s EITC. However, if the taxpayer’s Ohio taxable income (Ohio adjusted gross income less exemptions) exceeds $20,000 on either an individual or joint tax return, then the credit is limited to 50% of the tax otherwise due after deducting all other credits that precede the credit except for the joint filing credit. See the worksheet on page 20.

 

Ohio EITC Update

In 2014, Gov. John Kasich’s budget bill included a proposal to increase the state’s EITC from 5 to 15 percent of the federal credit. In May, 2014, the Ohio Senate approved a budget bill, HB 483, that included doubling the state’s Earned Income Tax Credit (EITC) to 10 percent of the federal credit and the governor signed it into law on June 17.

 

2015, 2016 New Mexico earned income tax credit EITC

New Mexico has a state-level EITC, called the Working Families Tax Credit (WFTC). The state credit is worth 10 percent of the federal credit, is also refundable, and is available to most filers who qualify for the EITC. In 2011 alone, the WFTC returned almost $49 million to New Mexico’s low-income working families.

 

New Mexico EITC Working Families Tax Credit (WFTC)

A refundable tax credit has been added. It totals ten percent of the federal earned income tax credit for which a taxpayer is currently eligible. There is also an exemption for low-and middle-income taxpayers that is based upon adjusted gross income. To qualify you must have an adjusted gross income of $27,500 or less if you are married and filing separately, $36,667 or less for single individuals, or $55,000 or less for married individuals filing jointly

 

Claiming New Mexico Working Families Tax Credit

If you live in New Mexico and you claim the federal Earned Income Tax Credit, you can also claim the New Mexico Working Families Tax Credit. The Working Families Tax Credit for New Mexico residents equals 10% of the federal EITC amount. The New Mexico state tax credit is 10% over and above the EIC that you get from the federal government.

 

Claiming New Mexico EITC

Example: If you live in New Mexico and you claim a $1,000 Earned Income Credit on your federal tax return, you can claim an additional 10% of this amount, equal to $100 ($1,000 x .10 = $100), on your New Mexico state income tax return.

 

Does New Mexico offer a tax break to retirees?

Yes. Depending on income level, taxpayers 65 years of age or older may be eligible for a deduction from taxable income of up to $8,000 each. Low-income taxpayers may also qualify for a property tax rebate even if they rent their primary residence. Beginning with tax year 2002 persons 100 years of age or more who are not dependents of other taxpayers are exempt from filing and paying New Mexico personal income tax.

New Mexico Medical Expense Exemption

The state also provides an income tax exemption of up to $3,000 to those 65 and older for medical expenses for either that person or his or her spouse or dependents. The expenses must exceed $28,000 and must not be reimbursed or compensated by other means like health insurance or Medicaid. That same taxpayer may also claim an additional refundable credit of up to $2,800 for unreimbursed or uncompensated medical expenses

2015, 2016 New Jersey earned income tax credit EITC

The New Jersey Earned Income Tax Credit (NJEITC) is a credit for certain residents who work and have earned income. The credit reduces the amount of New Jersey tax you owe and may also give you a refund, even if you have no tax liability to New Jersey.

 

What is NJ EITC?

New Jersey wage earners can also take advantage of the state’s own EITC program. Residents who are eligible and file for a Federal earned income credit can also receive a New Jersey earned income credit in the amount equal to 20% of their Federal earned income credit.

The New Jersey Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is a federal and state tax benefit for individuals and families who earn low-to moderate incomes in NJ. It is a tax credit that may reduce the amount of taxes you owe, or provide you with a refund, even if you don’t owe any taxes. To get the NJ state EITC, you must file a federal tax form, be eligible for the federal EITC and file a state income tax return (if you are married but file separately, you may not claim the NJ EITC).

Claiming 2015 New Jersey Earned Income Tax Credit (NJEITC)

Most residents who are eligible and file for a Federal earned income credit can also receive a New Jersey earned income tax credit. For 2014 the New Jersey Earned Income Tax Credit (NJEITC) is 20% of the applicant’s Federal earned income credit. For example, if your Federal earned income credit is $3,000, the amount of your NJEITC will be $600 (2014 NJEITC = Federal EIC x 20%). Part-year residents who qualify for the NJEITC must prorate the amount of the credit based on the number of months as a New Jersey resident.

 

2015 New Jersey Earned Income Tax Credit (NJEITC)

The amount of your NJEITC is a percentage of your federal earned income tax credit. This year, the NJEITC amount is equal to 30 percent of the federal earned income tax credit. So, if your federal earned income tax credit is $4,000, the amount of your NJEITC will be $1,200. (2015 NJEITC = federal EITC x 30 percent) Note: If you lived in New Jersey for only part of 2015, your NJEITC will be prorated based on the number of months you were a New Jersey resident. (For this calculation, 15 days or more is a month.) To receive the NJEITC, you must file a New Jersey resident income tax return. This is true even if you are not required to file a tax return because your income is below New Jersey’s minimum filing threshold.

Requirement to Notify Employees of Potential Earned Income Tax Credit (EITC) Eligibility

For the 2015 tax year, the employee must have earned income (wages, net profits from business) and their adjusted gross income (AGI) must be less than: • $47,747 ($53,267 if married filing jointly) with three or more qualifying children • $44,454 ($49,974 if married filing jointly) with two qualifying children • $39,131 ($44,651 if married filing jointly) with one qualifying child • $14,820 ($20,330 if married filing jointly) with no qualifying children.

 

Amount of New Jersey Earned Income Tax Credit

To qualify, your earned income and adjusted gross income (AGI) must be less than:

  • $46,997 ($52,427 married filing jointly) with three or more qualifying children
  • $43,756 ($49,186 married filing jointly) with two qualifying children
  • $38,511 ($43,941 married filing jointly) with one qualifying child
  • $14,590 ($20,020 married filing jointly) with no qualifying children

For the 2014 Tax year, you could receive a maximum federal credit of:

  • $6,143 with three or more qualifying children
  • $5,460 with two qualifying children
  • $3,305 with one qualifying child
  • $496 with no qualifying children

And a maximum NJ state earned income credit of:

  • $1228 with three or more qualifying children
  • $1092 with two qualifying children
  • $661 with one qualifying child
  • $99 with no qualifying children

 

Other Benefit Programs in New Jersey

  • Food Stamps
  • Medicaid (Health Insurance)
  • NJ FamilyCare (affordable health insurance for children)
  • Low Income Home Energy Assistance Program (heating bill assistance)
  • Temporary Assistance to Needy Families (welfare services and cash assistance for families with children)
  • General Assistance (welfare services and cash assistance for childless adults)
  • NJ Cares for Kids (child care subsidies)
  • Kinship Navigator (provides support and assistance to adults raising a relative’s child)