The Earned Income Tax Credit helps to keep poverty levels low by putting more of the taxpayers' money back into their hands. Lower income residents in Connecticut should be aware that the state offers their own version of an EITC, which is modeled after the structure of the federal credit. Connecticut taxpayers must meet the same requirements as stated by the federal EITC in order to claim the state EITC.
Connecticut's EITC is offered at a percentage of the federal credit at 30%, and the credit is fully refundable. That means that taxpayers who qualify can receive up to the full credit amount back as a refund. Any amount of the Connecticut EITC which exceeds the qualifying taxpayer's tax liability is returned to them as a refund, allowing them to get back more of the money they worked so hard for. A resident can receive the full credit amount if the family has no tax liability.
The Earned Income Tax Credit, both federal and state is one of the best tax breaks for working class families to take advantage of. In Connecticut, the EITC can help families with significant state and local tax liabilities. The EITC sets out to keep families working, even with low wages, by giving back more of their money.