|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:
The maximum amounts of the federal EITC are as follows:
To calculate the amount of the Louisiana earned income credit, multiply the federal EITC amount by .035 (3.5 percent). Some examples:
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.”