Earned Income Tax Credit

The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, the result is a tax refund to those who claim and qualify for the tax credit. 

The State of Utah appropriates funds to assist with the coordination and development of broad partnerships designed to successfully recruit households which qualify for the EITC and to prepare tax returns for those households. Funds are used for the establishment of Volunteer Income Tax Assistance (VITA) sites, as well as for recruiting, training, and qualifying volunteer tax preparers, who submit EITC claims as part of the tax return for EITC eligible households. 

The Housing and Community Development Division-State Community Services Office (SCSO) administers the program through contracts with its community partners. Through the EITC program, SCSO partners provide free tax preparation services for low to moderate income households. In addition, the partners seek out tax preparation sites, educate the public about VITA, and offer financial education to help families out of poverty.