Press Releases

State earned income credit can be worth hundreds of dollars for working families

April 5, 2013

BATON ROUGE - Hundreds of thousands of Louisiana families with low to moderate incomes can increase their state tax refunds with the Louisiana Earned Income Tax Credit. More than 400,000 taxpayers claimed this refundable tax credit in 2012 for an average benefit of $100.

The state earned income credit is equal to 3.5 percent of the federal EITC. For the 2012 tax year (federal returns due April 15, 2013), the maximum amount of the federal EITC is:

  • $5,891 with three or more qualifying children
  • $5,236 with two qualifying children
  • $3,169 with one qualifying child
  • $475 with no qualifying children

And the income thresholds for the federal EITC are:

  • $45,060 ($50,270 married filing jointly) with three or more qualifying children
  • $41,952 ($47,162 married filing jointly) with two qualifying children
  • $36,920 ($42,130 married filing jointly) with one qualifying child
  • $13,980 ($19,190 married filing jointly) with no qualifying children

To calculate the amount of the Louisiana earned income credit, multiply the federal EITC amount by .035, or 3.5 percent. Some examples:

2012 Tax Year Federal EITC Louisiana EITC
$5,891 $205
$5,236 $183
$3,169 $111
$475 $17

Claim the state earned income credit on Line 21 of the Louisiana Resident Individual Income Tax Return in the section titled “Refundable Tax Credits.”

2012 Louisiana Individual Income Tax returns are due May 15, 2013.