Louisiana earned income tax credit could be worth hundreds of dollars to working families

BATON ROUGE – The Louisiana Department of Revenue reminds Louisiana families preparing their 2011 state individual income tax returns about a refundable tax credit for working people with low to moderate incomes.  More than a half-million Louisiana families claimed the Louisiana Earned Income Tax Credit in 2011 for an average benefit of $91.

The Louisiana Earned Income Tax Credit is equal to 3.5 percent of the federal EITC. For the 2011 tax year, the federal EITC is worth a maximum of $5,751, depending on such factors as filing status, income level and number of children claimed as dependents. According to the IRS, the income thresholds for the federal EITC are:

  • $13,660 ($18,740 married filing jointly) if you do not have a qualifying child
  • $36,052 ($41,132 married filing jointly) if you have one qualifying child
  • $40,964 ($46,044 married filing jointly) if you have two qualifying children
  • $43,998 ($49,078 married filing jointly) if you have three or more qualifying children

The maximum amounts of the federal EITC are as follows:

  • $5,751 with three or more qualifying children
  • $5,112 with two qualifying children
  • $3,094 with one qualifying child
  • $464 with no qualifying children

To calculate the amount of the Louisiana earned income credit, multiply the federal EITC amount by .035 (3.5 percent). Some examples:

  • If your federal EITC is $5,751, you would be entitled to claim a Louisiana earned income credit of $201.
  • If your federal EITC is $5,112, you would be entitled to claim a Louisiana earned income credit of $179.
  • If your federal EITC is $3,094, you would be entitled to claim a Louisiana earned income credit of $108.
  • If your federal EITC is $464, you would be entitled to claim a Louisiana earned income credit of $16.

Eligible Louisiana residents can claim the state earned income credit on line 21 of the Louisiana Resident Individual Income Tax Return in the section titled “Refundable Tax Credits.”

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