The Poverty Institute works to develop and promote policies to improve the economic security of low- and modest- income Rhode Islanders and ensure that tax and budget policies are equitable and adequate to fund vital public services.
Earned Income Tax Credit (EITC) The Earned Income Tax Credit provides a tax credit and/or refund to people who earn low to moderate wages. The payment can be received as part of the end-of-year tax filing and a portion can be received in the worker’s weekly paycheck . The amount of EITC received in the paycheck will not affect eligibility for RIte Care or the amount of SNAP or RI Works cash assistance. The refunded EITC is counted as a resource beginning in the second month after it is received for RI Works cash assistance. The refunded EITC is not counted as a resource for 12 months after receipt for SNAP benefits.
Workers who qualify for the federal EITC also qualify for a state EITC which is a portion of the federal amount.
Who Qualifies? For tax year 2009:
• Workers who were raising one child in their home and had family income of less than $35,463 (or $40,463 for married workers) can get an EITC of up to $3,043.
• Workers who were raising two children in their home and had family income of less than $40,295 (or $45,295 for married workers) can get an EITC of up to $5,028.
• Workers who were raising three or more children in their home and had family income of less than $43,279 (or $48,279 for married workers) can get an EITC of up to $5,657.
• Workers between the ages of 25 and 64, who were not raising children in their home, and had income below $13,440 ($18,440 if married and filing jointly) can get an EITC of up to $457.
• Qualifying children include: sons, daughters, stepchildren, grandchildren as long as they lived with the taxpayer for more than half the year. Nieces, nephews, children of a friend or foster children can be qualifying children if they lived with the taxpayer all year and were cared for as members of the family. Qualifying children must be under age 19 or under age 24 if they are full-time students. Disabled children of any age are considered "qualifying children."
• Immigrants who are "resident aliens for tax purposes" can get the EITC. This means the immigrant must be a lawful permanent resident or have lived in the U.S. for at least six months. Immigrants who are not permanent residents can qualify if they and their family members have legal work authorization and have a status including the following: refugee, asylee, Temporary Protected Status, Deferred Enforced Departure or applicant for asylum.
How to Apply Workers can receive part of the EITC in their weekly paycheck as an "advance EITC payment." To apply, the worker fills out a W-5 form called the "Earned Income Credit Advance Payment Certificate" available from the worker's employer. (Some workers should not use the Advanced EITC because of possible overpayment: workers who hold more than one job, workers with a working spouse unless both spouses take the advance payment, workers who get married during the year, workers whose earned income increases significantly during the year. These workers should file at the end of the year.)
To receive the EITC at the end of the year, the worker who has children files a Form 1040 or 1040A and fills out the Schedule EIC. The worker who was not raising children can file any tax for (including the 1040EZ). You will need to fill out the Schedule EIC in addition to a regular tax return. You can find a copy of the instructions and tax forms here.
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