Today's Monday Map shows the percentage of filers in each state who receive an earned income tax creditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. (EITC.) This taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. credit is targeted towards lower income working people (more on how this works here). Many federal income tax "nonpayers" are EITC recipients (though they may still have some taxable incomeTaxable income is the amount of income subject to tax, after deductions and exemptions. For both individuals and corporations, taxable income differs from—and is less than—gross income. , the credit they get back exceeds their tax liability.)
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View previous Monday maps here.Share