2015 Delaware Earned Income Tax Credit Delaware EITC

By | January 3, 2016

The Delaware EITC was enacted in 2005 and took effect starting in the 2006 tax year. The credit is non-refundable. In Delaware, the non-refundable EITC is set at 20% of the federal credit. A non-refundable EITC may offer substantial tax relief to families with state income tax liability, but it offers no benefits to working families that have income too low to owe any income taxes.


Claiming the Delaware EITC

The tax system has a pervasive impact on poverty, both directly through its role in the distribution of society’s resources and indirectly through its effects on the incentives for economic decisions like working and saving. The two most important facets of the tax system for low-income families are payroll taxes and the Earned Income Tax Credit (EITC), the former of which levies a tax on earned income and the latter provides a tax credit for earned income.


Claiming Delaware Earned Income Credit

The Earned Income Tax Credit helps working families keep more of what they earn, and brings millions of dollars back to Delaware’s economy.  Yet, every year, close to 20% of eligible Delawareans do not file for it..  The Delaware EITC Campaign reaches out to Delaware residents, helps them file their taxes, and teaches them how to best put that money to use.  I’m hopeful that every eligible Delawarean takes advantage of this opportunity.  In many cases, it makes the difference between getting by and getting ahead.


Delaware  EITC campaign

The EITC campaign in Delaware is coordinated by the Nehemiah Gateway Community Development Corporation (NGCDC).   The program offers free tax services to citizens through a partnership of the Nehemiah Gateway CDC, First State Community Action Agency and the Delaware Alliance for Community Advancement, with support from financial institutions, foundations, and United Way of Delaware.

Using the Delaware Earned Income Tax Credit DE EITC

According to Reverend Clifford Johnson, President of NGCDC, the EITC increases the ability of workers in lower paying job categories to support themselves and their families. He said research shows that helping a person reap additional tax benefits based on the amount they earn has increased the labor force participation of lower skilled workers, especially single mothers.