What Is the Earned Income Tax Credit (EITC)?
The Earned Income Tax Credit (EITC) is a US federal tax credit for workers with low to moderate earned income. It is refundable, meaning it can produce a refund even if no income tax is owed. The amount depends on income, filing status, and the number of qualifying children.
How It Works
The credit rises with earned income up to a plateau and then phases out as income increases further. Limits and maximum amounts are adjusted each year.
Qualifying
Eligibility rules cover earned income, investment income limits, residency, and qualifying children.
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🔗 Related Terms
More Taxes Terms
- Additional Medicare Tax
- Adjusted Gross Income (AGI)
- Alternative Minimum Tax (AMT)
- Capital Gains Tax
- Capital Loss
- Cost Basis
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.