MEMORANDUM
2004 Memorandums
IM-18      02/27/04
SUBJECT:
EARNED INCOME CREDIT (EIC)
CHILD TAX CREDIT (CTC)
DISCUSSION:
The purpose of this memorandum is to advise you of the criteria necessary for individuals who had earnings in 2003 to qualify for the Earned Income Credit (EIC) and the Child Tax Credit (CTC).  It is important to share the EIC and CTC information with all program participants.  The exclusion policy that applies to EIC and CTC is also included in the following information.

EIC

The income limits for tax year 2003 are:

  1. $29,666 for single or $30,666 for married persons who had earned income and one child in their home more than half of the year;
  2. $33,692 for single or $34,692 for married persons who had earned income and more than one child in their home more than half of the year;
  3. $11,230 for single or $12,230 for married persons without children, who are between the ages of 25 and 64.
CTC

The CTC refund is based on the amount by which the family’s income exceeds $10,500.

To receive these tax credits those with children must file a tax form 1040 or 1040a and a Schedule EIC.  Persons without children can file any tax form.  They do not need to file schedule EIC.

Any EIC or CTC payment received by food stamp households is excluded from income, whether received as a lump sum or as advance payments.  The EIC and CTC payment is also excluded from resources if:

  • the person receiving the payment was participating in the Food Stamp program at the time the payment was received; and
  • the person participates continuously for 12 months from the date the payment is received.
The EIC or CTC payments received by Temporary Assistance, Medical Assistance for Families and MC+ claimants are not considered as income.  For Temporary Assistance, EIC or CTC payments are not considered as an available resource in the month of receipt or the month following the month of receipt.

EIC and CTC payments are excluded as income for any program based on OAA, PTD, AB, or GR requirements.  For these programs, an EIC or CTC payment is considered a resource in the month received.

The Department of Social Services has partnered with the nineteen (19) Community Action Agencies around the state to assist low income workers with applying for the federal Earned Income Tax Credit.  The Community Action Agencies will offer money management classes, help people establish a bank account, and work with employers who want to offer advance earned income tax credit to their employees.  The Community Action Agencies and contact information pdf file is attached.

Refer any individual who is currently working to the nearest Community Action Agency to see if they qualify for this tax credit and other assistance.  Use Earned Income Tax Credit Referral (IM-101E) revised February 2000, when referring to the Community Action Agencies.   A copy of IM-101E is attached.

Also attached is printed information on EIC in both Spanish pdf file and English pdf file .  Please copy and post both versions of this brochure in public areas of your office.
 

NECESSARY ACTION:
  • Review this memorandum with all staff.
  • Refer working families to Community Action Agencies using the IM-101E.  The address and telephone number of the participant is required for the referral.
  • Post the attachments and make copies available to visitors to your office.
GZ
Attachments:
Community Action Agencies contact information pdf file
Spanish EIC Flyer pdf file
English EIC Flyer pdf file
IM-101E not available online.