Earned Income Tax Credit (EITC)

Rate (Non-Refundable): 10% of the federal credit, limited to 50% of liability for Ohio taxable income above $20,000

Eligibility Requirements: All Ohio taxpayers who qualify for the federal credit are automatically eligible.

Latest Legislative Action:

  • In 2017, the legislature is considering  a bill that would make the state’s EITC refundable.
  • Ohio doubled its state EITC to 10% of the federal credit in 2014, after initially introducing it at 5% in 2013.

Child Tax Credit (CTC)

Ohio does not currently offer a state-level CTC.

Child and Dependent Care Tax Credit (CDCTC)

Rates (Non-Refundable):2

  • For families with an adjusted gross income below $20,000: 100% of federal credit
  • For families with an adjusted gross income of $20,000-$40,000: 25% of federal credit
  • Maximum amount of claimable expenses is $3,000 for one qualifying dependent and $6,000 for two or more.

Eligibility: All Ohio taxpayers who qualify for the federal credit are automatically eligible.

Ohio Tax Credits In The News

10

Oct 17

News Round-Up: October 10, 2017

U.S. Senators Tammy Baldwin (D-WI) and Cory Booker (D-NJ) released a new tax plan, the Stronger Way Act, which includes an expansion of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) to benefit low-income Americans. Specifically, the plan would grow the size of the existing EITC, expand the credit for workers without dependent children, make the CTC refundable and grow the size of the credit.
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14

Feb 17

News Round-up: February 14, 2017

Members of the House Committee on Ways and Means introduced bills to improve tax credits for workers and families. Rep. Richard Neal (D-Mass.) proposed a bill that would lower the Earned Income Tax Credit’s (EITC’s) age requirement from 25 to 21 and expand the EITC for workers not raising children. Rep. Rose DeLauro (D-Conn.) announced her bill to index the Child Tax Credit (CTC) for inflation and expand the credit for parents raising children under the age of six.
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For More State Information:

Kalitha E. Williams
Policy Liaison
Policy Matters Ohio
www.policymattersohio.org
(216) 931-9922
kwilliams@policymattersohio.org

Sources:
  1. Earned Income Credit Information, Ohio Department of Taxation
  2. A Credit that Counts, pg. 14, Policy Matters Ohio