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hi I'm mark for each acts calm the federal government offers an earned income tax credit eitc to working families in an effort to combat poverty and help americans retain a little extra of their hard-earned money for lower-income families the eitc can be a big help at tax time as it can keep taxpayers above the poverty line many states offer their own version of the eitc and Iowa is no exception for residents in Iowa they can claim the state eitc as long as they meet the eligibility requirements for the federal credit I was eitc is modeled after the federal credit directly offering a state credit that is equal to fifteen percent of the federal credit Iowa is one of the 21 states and the District of Columbia that offer a fully refundable credit in doing so taxpayers can receive a refund for any credit amount that exceeds their tax liability this means that families who have zero income tax liability can receive the entire amount of the EITC as a refund the EITC can help taxpayer

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