Earned Income Tax Credit Returns
The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low-income working 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. Workers with low wages who do not have a child might be able to claim the Earned Income Tax Credit (EITC). Childless workers with low-income are believed to be the largest number of taxpayers who do not claim the credit.
The EITC has no effect on certain public assistance benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.In the 2010 tax year over 55,000 low-income wage earners in Pierce County filed for the earned income tax credit, a 3.4% increase over the 53,550 who filed the previous year. The estimated average EITC return in Pierce County continues to increase and is up from just over $1,500 in the year 2000 to almost $2,100 in the 2010 tax filing year.