Bill > H4237

This bill clarifies eligibility for the earned income tax credit, which is a tax credit for low-to-moderate income working individuals and families, by amending Section 6 of chapter 62 of the General Laws. Specifically, it replaces the existing subsection (h) with new language that allows a taxpayer to claim this credit if they qualified for and claimed the federal earned income credit, as defined by section 32 of the Internal Revenue Code. For individuals who are not residents of Massachusetts for the entire tax year, the credit will be prorated, calculated as 23 percent of the federal credit multiplied by a fraction representing the portion of the year they lived in Massachusetts; nonresidents for the full year will not be eligible. The bill also states that this earned income tax credit will be applied after any other credits allowed under this section, and any excess credit amount that exceeds the taxpayer's tax liability will be refunded to the taxpayer without interest.