We support legislation (S-2182 and H-7686) which provides a full refund of the RI Earned Income Tax Credit for all those entitled.

RI's nominal Earned Income Tax Credit (EITC) is 25% of the federal EITC, benefiting 44,000+ low-income working families. According to TaxCreditResources.org, The Rhode Island EITC program is "unnecessarily complicated (much more so than most other states)."

RI's EITC is currently 25% of a taxpayer's federal EITC credit, but taxpayers entitled to a refund are only allowed credit for 3.5% of federal. They are treated differently. For those taxpayers qualifying for a refund, they calculate their tax refund credit as 25% of federal and then take only 15% of the credit amount as a refund. If you qualify for federal EITC and owe Rhode Island money, you win; if Rhode Island owes you money, you lose.

Progress is slow. While this represents an increase from tax year 2005, when we fought for and won an increase from a refundable amount of 2.5% of the federal amount (or 10% of the 25% of federal EITC), we want more tax fairness.

All Rhode Islanders who qualify for the RI EITC should be entitled to an equal benefit; that is an earned income tax credit or refund of 25% of the federal EITC.

For an explanation of RI's Earned Income Tax Credit program, go here.

Call us at (401) 728-5555 to help us to acheive these important goals.