what is the earned income tax credit?

[Noor]

I’ve heard this can lower taxes, but I’m not clear on what is the earned income tax credit. Who qualifies for it and how is the credit calculated?

 

[Jonas_Kahnwald]

The Earned Income Tax Credit (EITC) is a grant from the US tax system aimed at workers with low to moderate incomes. It is a deduction from tax due, and if the deduction is greater than the tax owed, the difference is refunded. This calculation is made depending on income, filing status, and the number of qualifying children.

 

[Aurora]

The Earned Income Tax Credit (EITC) is a tax credit in the United States that is granted to low- to middle-income employees and families. It minimizes the taxes payable and can lead to a refund. The amount of credit received is determined by income, the status of filing and the children who qualify.

 

[Benjamin]

Earned Income Tax Credit (EITC) is a U.S. tax credit that is refundable and offered to low- to moderate-income earners and families. It decreases taxes that are payable and could lead to refund. The amount of credit is based on income, filing status, and the number of qualifying children, which assist in motivating people to work and minimizing poverty.

 

[James Miller]

EITC is a tax credit in the United States granted to low and moderate-income earners that lowers the taxes payable and could lead to refund.