Strengthening Virginia’s Earned Income Credit

Earned Income Calculator (For Tax Year 2016)

Marital status: Single Married
Number of children:
Annual income: $

Low-income working families in Virginia pay more in state and local taxes as a share of their income than high-income Virginians. And the contrast is pretty stark. Households making under $21,000 a year pay, on average, 9 percent of their income in state and local taxes. But households that earn at least $542,000 a year pay 5 percent of their income in state and local taxes.

The state earned income credit, along with the federal Earned Income TAX credit (EITC), helps balance out this disparity. They both can reduce or eliminate the amount of income taxes owed by a low-income person. But, unlike the federal credit, if your state credit is more than the amount of taxes you owe, you can’t get the rest in a tax refund to help offset other state and local taxes you pay. That means low-income working families are stuck paying a greater share of their income in state and local taxes like sales and property taxes than wealthier households.

Claiming Full Credit
Making the state credit refundable would dramatically enhance the difference the credit makes to these families.
In addition to being the country’s most successful and proven anti-poverty tool for children, lifting over 3 million kids out of poverty each year, it also helps low-income families get the resources they need to get to their jobs, keep the lights and heat on, and put food on the table.

See the Difference
Use the calculator to see how the EIC helps hard-working Virginians and how making it refundable would help even more! (Note: This simple calculator is for estimation purposes only. Calculations used are for tax year 2016 and are based solely on the information you enter and current tax law.)

 

Other EITC Resources & Research

District Specific Fact Sheets: EIC information for every legislative district, by legislator

EITC Explainer — Claiming Full Credit: Strengthening Virginia’s Working Families (pdf)

Shared Credit: Earned Income Credit Improvement Brings Broad Economic Benefits (pdf)

All it Can Be? Virginia’s Earned Income Credit Could Do More for Military Families (pdf)