New Video: The EITC Helps Millions Make Ends Meet
As federal and state policymakers work to provide financial relief to low-income workers during the COVID-19 economic recession, it is a good time to remember just how critical the Earned Income Tax Credit (EITC) is to working families.
The EITC, a refundable credit designed to offset taxes for low- and moderate-income workers, increases incomes for about 25 million Americans each year. In 2019, the EITC and Child Tax Credit (CTC) lifted 7.5 million Americans out of poverty. What’s more, the credit is linked to improved health, education, and employment outcomes.
Watch our new video to learn how federal and state EITCs help working families stay afloat.
The EITC is particularly important during the COVID-19 recession. Tax policy experts have highlighted the EITC as a key element of any COVID-19 policy response at the federal and state level. 31 states and U.S. territories have a state-level credit. In 2020, California, Colorado, and New Jersey extended their credits beyond the limits of the federal credit to make it more accessible.
To learn more about federal and state credits, follow TCWF on social media.