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Connecticut increased its Earned Income Tax Credit (EITC) to 40% of the federal credit for the 2024-2025 tax year, providing a significant, refundable tax boost to low-income working families. Eligible residents must file a state income tax return and claim the credit to receive it.
The Earned Income Tax Credit (EITC), or Earned Income Credit (EIC), is a tax benefit for working people with low or moderate incomes. The EITC/EIC is designed to reduce the tax burden on eligible income workers and to supplement their wages. Workers who qualify for the EIC and file a federal tax return can have some or all the federal income tax that was taken out of their pay during the year refunded to them. Workers whose earnings are too small to have paid taxes can also obtain an EITC/EIC. The EITC/EIC also reduces any additional taxes eligible workers may owe.
Workers who raised children must file Form 1040 and must fill out and attach Schedule EIC to be eligible for the tax credit. Married workers must file a joint return to get the EITC/EIC. These workers write “EIC” (or the dollar amount of their credit) on the Earned Income Credit line on the tax form. They do not need to file Schedule EIC. Schedule EIC forms can be obtained by mail or downloaded from the website of the IRS: https://www.irs.gov/. Forms can also be obtained at libraries, post offices, and local IRS offices.
These calculations are for the 2025 IRS Tax Schedule filing for the 2026 Tax Year - click HERE.
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