Low-income Indiana residents will benefit from an increased state-earned tax credit after the Indiana House unanimously approves House Bill 1290.
The House Bill seeks to increase the state-earned income tax credit to 12%, which taxpayers can claim for a taxable year. The increase is almost equal to the federal earned income tax credit. WFYI reported that the bill has also raised the eligibility threshold, meaning that married couples who jointly file their taxes and taxpayers with three or more dependents would be eligible for higher credit. Once approved, taxpayers can receive the following earned income tax credit:
| Dependents claimed | Maximum Adjusted Gross Income (Single Filer) | Maximum Adjusted Gross Income (Married Filing Jointly) | Maximum proposed Indiana Earned Income Tax Credit (under HB 1290) |
| Zero | 417,640 | $24,210 | $72.00 |
| One | $46,560 | $53,120 | $479.40 |
| Two | $52,918 | $59,478 | $792.48 |
| Three Or More | $56,838 | $63,698 | $891.60 |
Also Read: IRS: Check Out the Earned Income Tax Credit (EITC)
Indiana’s low-income families are expected to benefit once House Bill 1290 is approved in Senate. (Photo: CNBC)
The House Bill was proposed by Representative Chuck Goodrich (R-Noblesville). He said the bill is simple but will make a huge difference to almost 500,000 Indiana families. Representative Cherrish Pryor (D-Indianapolis) welcomed the bill as it will act as a safety net for low-income residents.
Indiana General Assembly indicated the bill was referred to the Senate and will be sponsored by Senators Greg Walker, Linda Rogers, and Travis Holdman. The Senate hearing will be on March 5 or April 18.
