What is the Earned Income Tax Credit?

In 2022, 31 million workers and families received about $64 billion from the EITC.

As a taxpayers income grows, the credit phases in and then phases out to zero.

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In addition, taxpayers without children must be between ages 25 and 64 to claim the EITC.

How Does the EITC Support Local Economies?

In 2019*, the participation rate ranged from 70 percent in Alaska to 84 percent in Rhode Island.

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How Much Could States Benefit from Greater EITC Participation?

How much are workers and their states missing out on from not claiming the EITC?

In some large states, like California or Texas, workers forgo roughly a billion dollars per year.

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Also losing out on those billions are the two states economies.

This fact sheetincludes a table,Estimated Total Unclaimed EITC and Its Economic Impact by State, 2019.

Benefits can still fall short.

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Workers and Employers Gain from Health and Wellness Benefits

Offering health and wellness benefits to workers also benefits employers.

Yoga, meditation, and relaxation training also improve employees' brain health.

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