2015, 2016 Oklahoma earned income tax credit EITC

By | January 3, 2016

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.