Hundreds in Rocky Hill Benefit From New Connecticut Tax Credit

A report issued this week praises the state's Earned Income Tax Credit for helping working families.


Connecticut’s Earned Income Tax Credit benefited 180,000 households last year, its first year of implementation, including 377 households in East Hampton and 276 in Portland, according to a report compiled jointly by the Fiscal Policy Center at Connecticut Voices for Children and the Connecticut Association for Human Services.

Both groups called on state policymakers to continue supporting the tax credit for low- and moderate-income workers and to avoid cutbacks during the upcoming legislative session.

The state EITC was approved by the governor and General Assembly in 2011, and was first implemented in 2012 for income earned in 2011.

"The Earned Income Tax Credit is clearly working and making a big difference in the lives of working families," said Wade Gibson, Senior Policy Fellow at the Fiscal Policy Center. "We should continue support for the state credit, which helps to ensure that people who work are able to make ends meet and stay out of poverty."

“The EITC is widely recognized as the single most effective action the state can take to reward work, keep people off of state benefits, and lift kids out of poverty,” said Jim Horan, executive director of the Connecticut Association for Human Services.

“Connecticut has taken a giant step forward with the state’s EITC,” he added. “If we go backwards, and take money out of the pockets of hardworking families, we are taking money away from the communities where they spend that money, and we are jeopardizing our fragile economic recovery.”

You can view a PDF of the town-by-town data on the EITC above.

According to the report:

  • In Rocky Hill, the average amount of the state tax credit for the 2011 tax-filing year was $484. The average household income in East Hampton among those claiming the credit was $16,333.
  • Statewide, the average credit was about $600 and households claiming it had average incomes of about $18,000 – typically what a single parent working full-time just above the minimum wage would earn before paying taxes, the report states.

The study, taken from data at the Connecticut Department of Revenue Services, praised the benefits of the credit for:

  • Keeping people employed.  The credit can only be claimed by people who earn income through work, and is structured to encourage people to work more.
  • Making the state tax code fairer. The EITC was critical in balancing out the regressive impact of recent sales tax increases, which tend to hit low-and moderate-income residents hardest. People only receive the credit if they work and pay taxes, including federal payroll, state, and local taxes.
  • Creating a proven anti-poverty tool. The federal EITC lifts more children out of poverty than any other federal program.  In 2011, the federal EITC alone kept 61,000 people in Connecticut above the poverty line, including 35,000 children.

Workers who earned $50,270 or less in 2012 and were raising children, and single workers without children who earned $13,980 or less may qualify for the credit this year.

Tax filers can claim the federal and state EITC by filling out the EITC tax schedule form with their tax returns.  Workers must claim the federal credit to obtain the state credit. 

Free assistance with filing federal and state tax returns will be available for low- to moderate-income people through Volunteer Income Tax Assistance (VITA) sites across the state. 

Bert Marchael January 11, 2013 at 08:41 PM
You are taking money out of hard working people and giving it to people who pay nothing to the State. All this during a finnacial crunch. Just keep taking money away from what people call the rich and watch more and more people leave Connecticut. I can't wait to retire so I take take my money and myself out of CT and keep more for myself. Eveyone las year who ended up sending money to the state when they usually got a refund need to feel wonderful that their refund went to someone who gave nothing to the state and got back more. CT is already the worst state to retire and in the top 10 not friendly to business. Let us keep what we earn, that works for me.
Michele January 12, 2013 at 01:21 PM
Some people will just complain about EVERYTHING! Cry me a river!
Harry January 12, 2013 at 04:13 PM
Sorry Michele but Bert is dead on. The difference between me and Bert, I'm not waiting for retirement to leave. CT will only get worse with Progessive rule. This year I will be using my vacation time to research possible states to live, trips planned for Utah, North Carolina , South Carolina and Arizona. My property tax burden will be a tenth of what it is. I will save 50,000 in 5 years, how's that for my own EARNED tax credit. Oh, just a note, this yrs credit is a wash considering Obama just took it back with his payroll tax hike of 2%, ave 40 per paycheck, More than double ct's warfare taxe credit
Michele January 13, 2013 at 12:36 PM
This Income Credit is a little relief for those making minimum wage or close to it. It is to encourage them to keep working...and not to sit home collecting state benefits which everyone complains about too! I'm sorry, but this is not a bad thing and and if people would stop crying "poor me" just because you won't benefit from the credit. Instead you should realize that it's a good thing you are NOT at the low income level to qualify for the credit. It's those making over $400k a year that are paying more...again why are you complaining? FYI - Obama didn't hike up SS...the relief offered over the last 2 years expired. The SS is back to where it was 2 years ago before the relief was offered. But you probably complained when they offered the relief too, right?
Harry January 14, 2013 at 03:08 AM
Michele, wake up, 80% of Americans are now paying higher taxes. payroll tax was 4.2 and now it is 6.2, that is a TAX HIKE, no matter how you spin it. Depending on what you earn it's a $800 - $2400 pay cut. You justification is to take money from someone else ( redistribute ) so they won't quit there low income job? So they can buy smokes? Booze? Maybe hit the strip clubs? Get a 400 dollar phone? 800 dollar ipad? 400 dollar sneakers? Welfare does NOTHING but make people stick there hands out for more. Whatever, Malloy will just take it back when he ditches the property tax credit. I'm sorry Michele but liberals do good policy promote povety, the US Gov has spent 16 trillion dollar on the war on poverty, how's that working out for you....


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