Georgia Budget & Policy Institute: Georgia Work Credit Could Get Families a Better Deal at Tax Time
ITEP Work in ActionAs Georgians put the finishing touches on their returns to meet today’s income tax filing deadline, one benefit many are missing out on is a tax credit that states can offer to help average families get a fair deal. Twenty-six states and the District of Columbia provide taxpayers with a state-level match for the Earned Income Tax Credit (EITC), a federal program that gives a targeted tax cut to low- and middle-income workers with kids. It’s a well-documented fact that state EITCs are a good way to keep working families on the path to success by helping parents afford core needs like food and shelter as well as strategic investments like a reliable car to get to work. But a lesser-known benefit of the policy is the balance it brings to state and local tax systems as a whole, which tend to offer a better deal for those at the very top.