Credit for working parents, adults, is a quiet success story, but 57% of eligible paper filers miss out

DC Councilmember Charles Allen (Ward 6) is reminding DC residents and tax preparers that working adults and parents earning less than $60,000 per year are likely eligible for bigger tax refunds thanks to the DC Council.

This means DC residents working in the gig economy, in lower-paying industries, and seasonally can supplement their annual incomes by filing for the DC Earned Income Tax Credit (EITC) on their federal tax filings and automatically receive a locally funded match that nearly doubles how much they get back on their refund.

In 2023, more than 45,000 filers in DC received $1,400 back on average on their tax returns.

“In 2021, I pushed to make sure lower-wage, working adults and parents could get help through the Homes and Hearts Amendment, which increased DC’s local EITC match significantly. And every year, this law puts more money back into the pockets of hardworking DC taxpayers,” said Councilmember Allen, who was one of the three authors of the amendment. “In many ways our tax code benefits higher-income households, but the EITC ensures working neighbors can pay the rent, put food on the table, and even have some spending money.”

Importantly, a key group of eligible filers often misses out. If you file your taxes online or with tax preparation assistance, you almost always receive the credit due to the support you receive when filing. But for people who choose paper filing and do it themselves, only 57% receive it, even if they are eligible – likely because it can be easier to miss or incorrectly calculate if you’re doing your own taxes.

The District’s local match is one of the most generous in the nation. The EITC is a federal tax credit, and the local match is applied automatically for eligible filers. Residents can apply retroactively for up to three years, but they must file taxes to receive it.

The local match was selected to be cut in the Mayor’s proposed budget last year, but the DC Council restored funding in the final, approved budget. More information can be found on the Office of Tax and Revenue’s landing page for the Earned Income Tax Credit.