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Recent Changes in the State Earned Income Tax Credit and the Personal Exemption

What is the EITC? The federal Earned Income Tax Credit (“EITC”) is a refundable income tax credit for low- and moderate-income workers. The credit reduces the amount of tax an individual owes, and if the credit is larger than their income tax liability, they get a refund for the difference. The federal EITC was established in 1975 and today is claimed by roughly one out of every seven families who file a federal tax return. Former President Ronald Reagan described the federal EITC as the best pro-family, pro-job, anti-poverty legislation Congress ever passed. Download and read report

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