EARNED INCOME TAX CREDIT (EITC)

Rate (Fully-Refundable): 70% of the federal credit.¹

Eligibility Requirements:

• All District taxpayers who qualify for the federal credit are automatically eligible.

• In addition, non-custodial parents between 18 and 30 “who are in compliance with a court order for child support payments” may claim D.C.’s credit even though they are not eligible for the federal credit.

• See D.C.’s Earned Income Tax Credit Information Page for details.

Latest Legislative Action: For tax year 2022, D.C. expanded the EITC from 40% to 70% of the federal rate. Eligible filers will receive a refund equal to 40% of the federal EITC as usual after the return is processed. The additional 30% of the D.C. EITC will be paid in monthly installments over the 11 months pursuant to District law.²

Notes:

• The D.C. government, business and non-profit organizations partner together to run the DC EITC Campaign, which promotes awareness and free tax preparation services to ensure that all EITC-eligible DC residents claim both their federal and DC credits. 

• D.C. also offers a non-refundable Low Income Credit for individuals with qualifying children who do not claim the EITC.
• In May of 2014, the D.C. city council overrode Mayor Vincent Gray’s veto of a final budget, which expanded the EITC to 100% of the federal credit for childless workers.

CHILD TAX CREDIT (CTC)

D.C. does not currently offer a state-level CTC.

CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)

D.C. offers two versions of the state CDCTC with a more generous (and refundable) benefit for low-income families.

Credit for Child and Dependent Care

Rate (Non-Refundable): 32% of the federal credit, up to $336 for one child and $672 for two or more children.³

Eligibility:  All District of Columbia taxpayers who qualify for the federal credit are automatically eligible.

Keep Child Care Affordable Tax Credit⁴

Rate (Fully-Refundable): For tax years 2021-22, the tax credit was worth up to $1,020 per eligible child.

Eligibility Requirements: See the District of Columbia’s state tax information page for details.

Notes: Formerly known as the Early Learning Tax Credit (ELTC)