| No Contribution | 75% EITC | 90% EITC | |
| Net Income Before Contribution & CNI Tax | $220,000 | $220,000 | $220,000 |
| EITC Contribution | None | $10,000 | $10,000 |
| Federal Taxable Income Before PA CNI Tax | $220,000 | $210,000 | $210,000 |
| PA CNI Tax @ 9.99% | $21,978 | $20,979 | $20,979 |
| Federal Income After PA CNI Tax | $198,022 | $189,021 | $189,021 |
| PA CNI Tax Savings (After Deduction for Contribution) | None | $999 | $999 |
| EITC (PA CNI Tax Savings) | None | $7,500 | $9,000 |
| PA Tax Savings – Total | None | $8,499 | $9,999 |
| Federal Taxable Income | $198,022 | $196,521 | $198,021 |
| Federal Tax | $60,479 | $59,893 | $60,478 |
| Federal Tax Savings | None | $586 | $1 |
| PA Savings Total | None | $8,499 | $9,999 |
| Federal Tax Savings | None | $586 | $1 |
| Total Tax Savings | None | $9,085 | $10,000 |
| Annual Cash Required to Contribute $10,000 | $0 | $915 | $0 |
| Percentage Effective Total Tax Savings When Contributing $10,000 with an EITC | 90.85% | 100.0% |
Sample Computations
