With an estimated 20 percent of all eligible taxpayers nationwide not filing for the earned income tax credit, Vermont’s State Treasurer Beth Pearce and other officials want to call attention to this under- utilized credit.

The tax credit is so-named be- cause, to qualify, a person must work and have earned income. Tax- payers may claim the federal EITC as part of completing their 1040 or 1040-A form.

For the State EITC, Vermonters must first claim the credit on their federal return and then complete the 2011 Vermont Tax Adjustments form.

While the EITC does require more steps, it is well worth the effort. In 2010, the average combined federal and state EITC refund was more than $2000.