Credit Where it’s Due: The Earned Income tax Credit in Ohio
March 16, 2006
In 2003, more than 769,000 Ohio families received the federal Earned Income Tax Credit (EITC), a refundable tax credit for workers in families that make less than $37,263. The average EITC in Ohio was $1,720, bringing more than $1.3 billion into Ohio communities. However, more than 65% of Ohioans receiving the EITC (500,000 families) went to a paid preparer and more than 60% of those families bought high-interest, refund-anticipation loans (RALs), costing Ohio families more than $100 million. This report details how an Ohio EITC credit and better regulation on loans would further help families receive their full refunds.