How to Figure the Amount for Ohio Earned Income Credit

The Earned Income Tax Credit helps support individuals and families who are working toward a better future.

The Earned Income Tax Credit (EITC) is a form of tax relief for struggling employees in the United States. This tax credit is a direct return on your federal taxes. It is designed to reward and provide relief to those who are struggling financially, yet who are availing themselves of all possible employment opportunities. It also provides help to those who have children. Calculating the EITC for residents in Ohio is the same process for citizens in all other states. (There is no state-specific EITC form for Ohio residents.)

Things You'll Need

• W-2
• Other income documents (bank statements, investment income, 1098s)

Instructions

1. Log on to the Internal Revenue Service's earned income tax credit tool website (see Resources). This tool will walk you through the process of manually calculating your EITC return before you need to file.

2. Collect all the documents in the "Things You'll Need" section. The IRS's online worksheet requires you to report all income--self-employment income, wages, tips, investment income. You must wait to complete this worksheet if you are waiting to receive any 1098 or interest statements.

3. Begin filling out the worksheet online. You must first report the number of children for whom you are responsible. Dependents will figure heavily into the EITC calculation. To qualify as a dependent, a child must rely upon you for 51 percent of her expenses.

4. Enter all income figures into the next step of the worksheet. This will include wages, capital gains (returns on investments), unemployment income and combat pay. You must enter the income or "0" to proceed.

5. Enter any adjustments to your income on the next page. This includes any deductions you are taking for individual retirement account contributions, alimony payments, moving expenses and student loan deductions.

6. Click "Continue." If you are qualified for an EITC tax credit, this figure will be displayed. You should always corroborate this figure with a tax professional before mentally putting this figure in the bank.

References

• Internal Revenue Service: Earned Income Tax Credit FAQs
• IRS: No Ohio-specific EITC

Resources

• IRS: EITC online calculator