The Tax Professionals Blog — eitc

Background: The EITC for three or children, with 45% credit rate and maximum credit of $6,269 was a temporary increase sun setting after 2017 (Sec 32(b)(3).

California has initiated an EITC beginning 2015. California and twenty-five other states plus the District of Columbia now offer an EITC. In twenty-two of these states, including California, the credit is refundable. Most states set their EITC as a portion of the federal EITC, and most states conform to the federal EITC program in other aspects such as eligibility requirements and income levels.

During October the IRS will send warning letters to preparers who appear not to be complying with due-diligence requirements for the Earned Income Tax Credit.