EARNED INCOME TAX CREDIT (INCOME) SR 94-04 Dated 04/94 (FSM-A)

 Payments made by the Internal Revenue Service (IRS) to certain working individuals who are raising a dependent child and meet IRS requirements.

The Earned Income Tax Credit (EITC) is available as a recurring advance payment which the employer adds to the individual’s regular paycheck. However, the EITC is also available as a lump sum payment at the end of the tax year.

Treatment: Excluded Income

Advance EITC income is included in the individual’s wages.

Exclude lump sum EITC as a resource for 12 months from receipt if the individual receiving the EITC was a food stamp recipient at the time of receipt and continually participates in the program.

Exception: Households that leave the Food Stamp Program temporarily for 30 days or less are still entitled to the 12 month continuous exclusion.