Help more than 200,000 Kansas families make ends meet
PROTECT THE KANSAS EITC
What is the EITC?
The Earned Income Tax Credit (EITC) gets and keeps people in Kansas working. It can only be claimed by people who earn income through work and pay taxes, and the credit is structured to encourage people to work more hours. At the federal level, it was designed to offset payroll, excise and income taxes paid by families with low- and moderate-incomes, leaving them with more to support their children and easing their transition from welfare to work. Because working families who receive the federal credit also pay a substantial share of their income in state and local taxes (sales, excise and property taxes that as a share of income hit lower-income families harder than wealthier ones), Kansas established its own EITC.
Who is impacted by the EITC?
The Kansas state Earned Income Tax Credit (EITC) helps more than 200,000 working Kansans—primarily those with children—make ends meet.
Working families with children earning up to about $39,000 to $52,000 (depending on marital status and the number of children in the family) generally can qualify for Kansas’ EITC, but the largest benefits go to families with incomes between about $10,000 and $23,000. It is reaching working families in all of Kansas’ communities, especially those in rural areas. Of the top 20 counties with the highest percentage of their residents receiving the state EITC, 19 were rural.
Why does this matter to Kansas?
- Keeps Kansans working, despite low wages. An extensive body of research shows that the EITC substantially increases work among poor single parents. Like the federal credit, the Kansas EITC helps working families get by on low wages, which helps them stay employed. The EITC is also structured to encourage the lowest-earning families to work more hours, and that additional time and experience in the workforce opens up better opportunities and higher pay down the line.
- Helps Kansas families make ends meet. The Kansas EITC provides low- and moderate-income families with a needed income boost that can help them meet basic needs and cover the cost of child care and transportation, which helps them find and keep a job.
- Reduces poverty, especially among Kansas children. The federal EITC is the nation’s single most effective tool for reducing poverty among working families and children. It lifts about 6.1 million people — over half of them children — out of poverty each year. The boost given by the Kansas EITC lifts additional families out of poverty and helps near-poor families make ends meet.
- Has a lasting effect on Kansas’ children. Low-income children in families whose income is increased through initiatives like the EITC do better and go further in school. As a result, they work more hours and earn higher incomes as adults. This is good for all Kansans and our economy because it puts more individuals and families on solid ground and fewer in need of help over the long haul.
Read the brief: EITC: A Tax Credit That Works For Working Families
Listen to the radio spot:
To learn more about how you can help to protect the EITC in Kansas or to join our coalition of supporters, contact KCEG Executive Director Annie McKay.