EITC Funders Network

The EITC Funders Network brings together funders interested in the Earned Income Tax Credit, free- and low-cost tax preparation, and asset building. The Network seeks to:

  • increase awareness of EITC-related projects,
  • foster collaboration,
  • share information about the current status of EITC-related work,
  • and help shape the future of the field.

Read more about the EITC Funders Network.

What is the Earned Income Tax Credit?

The Earned Income Tax Credit (EITC) is a federal tax credit for people who work and have earned income below about $40,000 per year. The EITC reduces the amount of federal taxes owed and may also provide a refund.

The EITC is targeted at working poor families with children, although a small credit is also available for low-income workers without children.  The amount of EITC a taxpayer is eligible for varies by income level and number of people in the household.  For example, in tax year 2010 the maximum credit for a family with two children is $5,036, the maximum for a family with three or more children is $5,666, the maximum EITC for a family with one child is $3,050, and the maximum EITC for a family with no children is $457.

Because the EITC puts money back into the pockets of low-income families, the EITC has been called one of the largest and most effective poverty-reduction programs in the nation.  Each year, the federal EITC lifts more than 4 million people out of poverty each year - putting thousands of dollars back in the pockets of working families.

In addition, there are now 24 states (including the District of Columbia) with a state EITC. Click here to see a map of current state EITCs.

 

 

 

 

 

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