The Earned Income Tax Credit (EITC): Percentage of Total Tax Returns and Credit Amount By State

Publication Date: November 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

Type:

Abstract:

The earned income tax credit (EITC), established in the tax code in 1975, provides cash assistance to lower income working parents and individuals through the tax system. In tax year 2003, total EITC (EITC applied against tax liability and refunded EITC) was $39.2 billion, with 22.1 million tax returns claiming the EITC. Geographically, the four largest states in terms of population -- California, Texas, Florida, and New York -- had 35.1% of all federal tax returns claiming an EITC and 35.9% of the total EITC amount. States with a higher percentage of federal tax returns claiming the EITC were located in the South, with Mississippi (31.87%) and Louisiana (28.45%) having the highest percentage of federal tax returns claiming the EITC. This report will be updated when new data become available.