Tax time isn’t necessarily fun for anyone, but Kansas residents join twenty-four other states (and the District of Columbia) in enacting a state version of the Earned Income Tax Credit (EITC), which can help put a little more money back in your pockets. Based directly off the federal government’s version, Kansas residents can judge their eligibility for the state EITC on their federal eligibility status. Any taxpayer who meet the requirements to claim the federal EITC is likely able to claim the state credit as well.
Kansas offers a state credit that is equal to 17% of the federal credit. Additionally, the state credit is fully refundable, meaning a taxpayer can receive a refund amount for any credit amount that exceeds their tax liability. Furthermore, a family that has no income tax liability can receive the full amount of the credit as a refund.
Refundability is the essential component for the EITC to help keep poverty levels low. By offering the rest of the credit as a refund, taxpayers are able to use the money to offset the cost of other substantial taxes, both state and local, that a family may have to pay. This encourages taxpayers to keep working, regardless of their wages, and helps keep families out of poverty.