The credit designed to support low- and moderate-income workers.
The DC Earned Income Tax Credit is a refundable tax credit that helps boost income for low- and moderate-income workers. Even if you don’t owe DC income tax, you may still receive a refund. For Tax Year 2024, the DC EITC equals 70% of your federal EITC.
Who Is Eligible for the DC EITC?
Generally, if you qualify for the federal EITC, you also qualify for the DC EITC.
- If you were eligible for the federal Earned Income Tax Credit (EITC) on your IRS return, you are generally eligible for the DC EITC.
- To claim the DC EITC, file a DC Individual Income Tax Return (Form D-40) and follow the instructions for the credit.
Even if you don’t qualify for the federal EITC, you may still qualify for the DC EITC if:
- You have a valid Individual Taxpayer Identification Number (ITIN) and meet all other federal eligibility criteria, except for having a Social Security number.
- You qualify under DC-specific eligibility expansions, which allow certain residents to receive the DC EITC even if they do not qualify federally.
Learn more in the Instructions for Form D-40.
How Will I Receive My Refund?
Your DC EITC refund may be issued in one of the following ways:
- One-time payment: Paid with your regular DC tax refund.
- Monthly payments: If your DC EITC refund is $1,200 or more, you can choose to receive it in 12 equal monthly payments.
- If you opt for monthly payments, the funds will be disbursed using the same method you chose for your regular refund.
For tax year 2023 returns, taxpayers who have an EITC refund of $1,200 or more are required, by law, to receive their DC EITC refunds in 12 equal monthly installments.
For tax year 2022 returns, taxpayers who have an EITC refund and qualifying children may have a portion of their EITC paid in 11 monthly payments.
OTR will send a notice to every individual whose refund, or any portion thereof, will be paid in monthly payments.
Please note: Monthly payments may affect your eligibility for benefits like SNAP or other federal programs. If you are unsure whether to opt in, you may want to consult a tax advisor.
FAQ’s
Get quick answers to common questions about the DC EITC.
Resources
IRS EITC Information
Eligibility, income limits, and filing details directly from the IRS.
EITC Overview – Tax Policy Center
Research and insights about the EITC’s impact on working families.
Free Tax Preparation for Qualifying Taxpayers
Learn how to access free help through IRS VITA and TCE programs.
Community Tax Aid
Free tax preparation and financial services for eligible DC residents.