Working for low wages can be tough when trying to support a family. Thankfully, some relief is available through a tax benefit called the Earned Income Tax Credit (EITC). The federal government created the credit to give working families an incentive to continue to work and reduce poverty levels. The state of Virginia has enacted their own version of the credit, modeled on the federal system.<\/p>\n
Virginia\u2019s EITC follows the same eligibility requirements as the federal credit, meaning a taxpayer who claimed the federal credit will likely also be able to claim the state credit. The state credit is offered at 20% of the federal credit, though unlike most of the states who offer an EITC (with the exception of Delaware, Maine, and Ohio) Virginia\u2019s EITC is non-refundable.<\/p>\n
A non-refundable credit can be used to lower the amount of state income tax a family owes, but it can\u2019t be applied to any other taxes, and the excess amount isn\u2019t returned to the taxpayer. Critics suggest that a non-refundable credit defeats the purpose of the EITC, however for many working families, any tax help at all is a welcome relief. The EITC can reduce a family\u2019s state income tax liability completely, which can take a little extra pressure off at tax time.<\/p>\n","protected":false},"excerpt":{"rendered":"
Working for low wages can be tough when trying to support a family. Thankfully, some relief is available through a tax benefit called the Earned Income Tax Credit (EITC). The federal government created the credit to give working families an incentive to continue to work and reduce poverty levels. The state of Virginia has enacted […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[126],"tags":[60,504],"class_list":["post-923","post","type-post","status-publish","format-standard","hentry","category-states","tag-eitc","tag-virginia"],"yoast_head":"\n