The Earned Income Tax Credit (EITC) is one way that taxpayers can get back more of their hard earned money come tax time. Nebraska offers a state version of the credit, which is modeled similarly to the federal credit, as far as eligibility requirements go. A Nebraska taxpayer who qualified for the federal credit will also be able to claim the state version, which is offered at a percentage of the federal credit.

Working families with low incomes can claim Nebraska’s EITC, at 10% of the federal credit. The state credit is also fully refundable, which means that a family can receive the excess of the credit in the extent that it is greater than their tax liability. A family without any tax liability can receive a refund for the full amount of the credit. Nebraskan’s who receive the EITC can also use the credit to offset other substantial taxes they may face, including state and local taxes.

By keeping the state credit refundable, Nebraska has made a direct statement about keeping poverty levels low and helping to encourage low-income families to continue to work. As a taxpayer, any amount of money that can be put back into your hands is a welcome relief, especially when your income is low. Be sure to take advantage of this important credit, if eligible.