The Earned Income Tax Credit, or EITC, is a federal income tax credit for low-income working families and individuals. Twenty-three states and the District of Columbia have their own version of the EITC. Most state EITCs are based on the amount of the taxpayer's federal EITC and have the same or similar eligibilty rules as the federal credit. Many state EITCs are also refundable.
Washington Earned Income Tax Credit
Washington's earned income tax credit is unique because Washington does not have an income tax. So, instead of an income tax credit this state offers a sales tax refund of 10% of the taxpayer's federal EITC amount or $50, whichever is greater. Unfortunately, due to budget issues this program has been postponed until 2012.
- State: Washington
- Percentage of federal credit: 10% in 2012
- Is it refundable? Yes
- Income eligibility criteria same as federal? Yes