An estimated 33,000 veteran or active-duty military families with children in Louisiana receive the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), according to a new study by the Center on Budget and Policy Priorities. These two working family tax credits reduce economic hardship and help increase opportunity for children.
The EITC rewards work and protects children from poverty by raising the incomes of low- to moderate-income families. Only families who have earned income from work during the year can qualify. Nearly 30 percent of all Louisiana households receive the credit. The CTC is an additional tax break for families with children.
Military families deserve security, and often use their tax credit for basic necessities such as car repairs, medical bills or to buy school supplies. Research shows children in families that receive the credit fare better in school, are more likely to attend college and go on to earn more as adults.
Louisiana has a complimentary state EITC that helps leverage the federal credit. More than half the states have similar credits, though Louisiana’s is the smallest in the nation. Increasing the value of the state EITC in the future would help provide more support to Louisiana’s families and children, including veterans.