On Nov. 22, I attended the Connecticut State Earned Income Tax Credit celebration at the State Capitol in Hartford. This event celebrated the recent approval of the EITC in our state budget, advocated by many since 1999.      

Among those honored for their leadership and support of this effort were Gov. Dannel Malloy, Senate Majority Leader Martin Looney and Department of Revenue Services Commissioner Kevin Sullivan. Also honored were the current and past leaders of Connecticut Association of Human Services, a nonprofit advocacy group that has helped champion the passage of a state EITC.      

The EITC, sometimes referred to as Earned Income Credit, are refundable tax credits for individuals and families who have low to moderate earned income.  When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. This tax credit is provided, in part, to offset the burden of social security taxes and to provide an incentive to work. 

CT’s new EITC will provide as many as 200,000 hard-working families, many with children, with a tax credit equal to 30 percent of their federal EITC. The maximum CT EITC will be $1,700, and the average credit will be $540. The average income of EITC filers is less than $20,000.   

The federal EITC credit was enacted in 1975 and today is one of the largest anti-poverty tools in the United States. There are only 19 other states that provide a state sponsored refundable credit, with only five others offering a credit of 30 percent or more.       

EITC can be accessed through local Volunteer Income Tax Assistance sites, a free service provided by IRS trained and certified volunteers who help people with incomes below $50,000 file tax returns and access credits (like EITC) and refunds.  Local VITA sites are coordinated by the Middlesex VITA Coalition, a partnership of Middlesex United Way and the Middlesex Coalition for Children. 

If you are interested in volunteering or would like to learn more about how to access this free service please visit www.middlesexunitedway.org/activities/vita.  All statewide VITA sites will begin accepting appointments in mid- to late-January, 2012 through United Way 2-1-1.