Current through Register Vol. 54, No. 25, June 22, 2024
Section 140.254 - Earned Income Tax Credit (EITC)(a) The advance monthly EITC payment which an applicant/recipient actually receives is counted as monthly earned income.(b) An applicant/recipient with earned income who is not receiving a monthly advance EITC does not have EITC counted as monthly earned income. The EITC counts as a lump sum payment when the EITC is refunded.(c) A reconciliation of the EITC is required for a current recipient of Healthy Horizons following the end of the tax year if the recipient verifies that the total amount of the advance EITC which was counted as earned income received during the tax year by the Department differs from the year-end EITC. The recipient is responsible for providing the information and documentation necessary to complete the reconciliation computation. This information includes the recipient's income tax return-IRS Form 1040, 1040A or 1040EZ-and the income tax refund check received or a photostatic copy of the income tax refund check. (1) If the amount of the advance payments counted by the Department is less than the EITC verified on the income tax return-IRS Form 1040, 1040A or 1040EZ-and the income tax refund check or a copy of the income tax refund check, the additional EITC is treated as lump sum payment in the month of receipt. The EITC is attributed to the person who was employed during the tax year. Each person who was employed is considered to have an equal share of the EITC.(2) If the amount of the advance payments counted by the Department is equal to, or more than, the EITC verified on the income tax return, no further adjustment is necessary.(3) If the recipient fails to provide the necessary verification, IRS Form 1040, 1040A or 1040EZ and the income tax refund check or a copy of the income tax refund check, the entire amount of the available EITC-the maximum EITC the recipient could receive less the amount of the advance payments counted by the Department-is counted as the EITC refund and as a lump sum payment in the month of receipt.