Kids COUNT in Delaware 2011 Issue Brief: Earned Income Tax Credit

This Issue Brief explored the Earned Income Tax Credit (EITC), an anti-poverty program for working families, based within tax code. Despite the success of the federal EITC in reducing poverty among working families, wages plus EITC do not guarantee an escape from poverty for all families. State level EITCs sometimes help to fill that gap. In Delaware, the non-refundable EITC is set at 20% of the federal credit. A non-refundable EITC may offer substantial tax relief to families with state income tax liability, but it offers no benefits to working families that have income too low to owe income taxes.