Earned Income Tax Credit

The Earned Income Tax Credit (EIC) is a federal tax benefit for low-income and moderate-income individuals who work full-time, part-time, or part of the year. The EIC is designed primarily to benefit families. Workers who qualify for the EIC and file a federal tax return can get back some or all of the federal income tax that was taken out of their pay during the year. They may also get additional cash back as an income supplement.

In addition to the Federal EIC, Maryland has a state EIC. The maximum value of an individual taxpayer’s state EIC is half the amount of that taxpayer’s Federal EIC. This amount can be used to reduce or eliminate state income tax liability. If the amount of the Maryland credit exceeds the worker’s state tax liability, then the taxpayer may be eligible to receive a portion of his/her Maryland EIC as a refund payment. Taxpayers may qualify for this benefit even if they do not otherwise have to file a state tax return.

Other Earned Income Credit Information

Federal Earned Income Credit

Maryland Earned Income Credit

Financial assistance through the Maryland CASH Campaign

For information about free or low cost tax preparation services available to low and moderate income families in Maryland call United Way’s First Call for Help toll-free line at 1-800-492-0618.