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DC Earned Income Tax Credit
The DC Earned Income Tax Credit (EITC) is a special tax break, based on the federal EITC, designed specifically for low- and moderate-income workers. People who qualify for the EITC will pay less in taxes or even get cash back.
Who is eligible for the DC EITC?
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Those District taxpayers who are allowed the Earned Income Tax Credit in filing their federal individual income tax return and did not claim the District Low Income Tax Credit.
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Beginning in tax year 2006, District taxpayers who do not qualify for the Earned Income Tax Credit for federal tax purposes can claim the credit on their District return if the taxpayer is:
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A District resident, and
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Between the ages of 18 and 30, and
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A parent of a minor child who does not live with the taxpayer, and
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A court has ordered the taxpayer to make child care support payments, and
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The court order is in effect for ½ of the year during the year that the taxpayer is claiming the credit, and
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The taxpayer paid child care support in the tax year claiming the credit equal to the amount of the child care support due during the year.
What is the amount of the DC EITC?
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For tax years starting 2005, those District taxpayers who are allowed the Earned Income Tax Credit in filing their federal individual income tax return and did not claim the District Low Income Tax Credit are allowed a DC EITC equal to 35% of the amount allowed by the Internal Revenue Service.
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For tax years starting 2006, those District taxpayers who are parents of a minor child, are required to pay child support and who otherwise qualify are allowed a DC EITC equal to 35% of the amount that would have been allowed by the Internal Revenue Service.
In addition to the DC EITC, some working families with children can benefit from the federal Child Tax Credit. The District government wants all eligible city residents to claim these valuable tax credits.
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For Employers and Community Groups:
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For Workers:
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