The following information is provided by the DC Office of Tax and Revenue.
Big changes are coming to the District Earned Income Tax Credit in 2024!
The District Earned Income Tax Credit (DC EITC) is a refundable credit for low and moderate-income workers. For individuals with qualifying children, the DC EITC is based on a percentage of the amount of the federal earned income tax credit (federal EIC) reported on an individual’s federal income tax return. For past years, the amount of the DC EITC was 40% of the amount of the federal EIC. For tax years 2022 - 2024, that percentage has been increased to 70% of the federal EIC.
For tax year 2023, individuals with qualifying children receiving the DC EITC will be paid differently than in the past. DC EITC refunds of $1,200 or more will be paid in 12 monthly installments after the tax return is processed. If your refund is less than $1,200, you will be paid in one lump sum payment as part of your DC tax refund.
In order for you to receive your monthly refund payments in a timely manner, it is important that you keep your address and banking information up to date with OTR throughout the year. You can ensure your information is up-to-date by logging in to your MyTax.DC.gov account or by calling our Customer Service Administration at (202) 724-4829.
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The DC Earned Income Tax Credit (EITC) is a refundable tax credit designed especially for low- and moderate-income workers. Because the DC EITC is a refundable credit, a person who qualifies for this credit may receive a refund even if he or she does not owe any taxes for the year. People who qualify for the EITC will pay less in taxes or even get cash back.
Who is eligible for the DC EITC?
- District residents who are eligible for and claim a federal EIC are eligible for a District earned income tax credit (“DC EITC”).
- For filers with a qualifying child, the DC EITC is a percentage of the federal EIC. In addition, certain non-custodial parents who would otherwise qualify for a federal EIC and who pay child support for qualifying children may be eligible for a DC EITC.
What is the amount of the DC EITC?
- District taxpayers who are allowed the Earned Income Tax Credit in filing their federal individual income tax return and did not claim the District Low Income Tax Credit are allowed a DC EITC equal to 70 percent of the amount allowed by the Internal Revenue Service.
- District taxpayers who are parents of a minor child, are required to pay child support and who otherwise qualify are allowed a DC EITC equal to 70 percent of the amount that would have been allowed by the Internal Revenue Service.
In addition to the DC EITC, some working families with children can benefit from the federal Child Tax Credit. The District government wants all eligible city residents to claim these valuable tax credits.
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