Earned Income Tax Credit

The Earned Income Tax Credit (EITC), sometimes called the Earned Income Credit (EIC), 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, it results in a tax refund to those who claim and qualify for the credit.

The State of Utah appropriates funds to assist with coordination and development of broad partnerships which are able to successfully recruit households which qualify for the EITC) and prepare tax returns for those households. Funds are used for the establishment of Volunteer Income Tax Assistance (VITA) sites, recruiting, training, and qualifying volunteer tax prepares who are able to increase the EITC benefits for qualified households.

The Utah 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 sites, educates the public about VITA, and works to offer financial education to help families out of poverty. In 2015, more than 20,500 free returns were completed by over 960 volunteers helping Utahans claim more than $8.9 million in EITC and other tax credits. Additionally $4.4 million estimated tax preparation fees were saved.