DC Fiscal Policy Institute: DC’s Earned Income Tax Credit – The Most Generous in the Nation, but not the Most Inclusive

The DC Earned Income Tax Credit (EITC) is a powerful tool for advancing racial, gender, and economic equity. Modeled after the federal tax credit by the same name, DC’s EITC goes to families and individuals earning low and moderate incomes to help them keep more of what they earn and meet basic needs. It is claimed at tax time and helps people pay for expenses like rent, food, and child care. Last year, DC lawmakers expanded the credit to make it the most generous in the nation, but it is not the most inclusive. Currently, it excludes roughly more than 5,000 low-paid working households because they have at least one person who is undocumented.

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