EITC Initiative / Virginia CASH Campaign - Frequently Asked Questions

The EITC refund does not count as income when it is received, but it could be counted as an asset. Earned income tax credit refund payments are excluded in annual income for housing. However, if EITC results in an asset (money placed into a savings account) then the amount of income generated from the asset would be included in income computation for food stamps, Medicaid and housing. It would be not counted for TANF. The asset impact would be limited as most persons receiving EITC use the funds immediately for existing needs.

Any EITC refund is included in your federal tax refund. If you are due a refund but have not paid certain amounts you owe, all or part of your refund may be used to pay all or part of the past due amount. This includes past due federal income tax, other federal debts (such as student loans), state income tax, and child and spousal support payments. You will be notified if the refund you claimed has been offset against your debts.

Generally no, but exceptions may occur.

You can receive a portion of your EITC refund throughout the year in your paycheck by filing a W-5 form with your employer. You must file a federal tax return to claim the remainder of your EITC credit.

You can call the IRS Teletax Information line toll free at 1-800-829-4477. Select Topic 601 for Earned Income Credit and Topic 604 for Advanced EITC. You can also call the IRS toll free at 1-800-829-3676 to request the EITC Publication 596.