EITC, the Earned Income Tax Credit, sometimes called EIC or Earned Income Credit is a refundable tax credit. Meaning, EITC can reduce the federal tax to zero and any left over credit is refunded. But, workers must file a tax return to get the credit even if their income is below the filing requirement. To qualify, workers must have taxable income from working for someone or from running a business or farm.
1Source: EITC Calendar Year Report, December 2012
2Center on Budget and Policy Priorities, Earned Income Tax Credit, Overpayment and Error Issues, April 19, 2011
Determining eligibility for EITC is complicated. You must make over 20 separate determinations. This tool kit presents the basic qualifiers. Refer to the EITC Home Page on irs.gov IRS for more detailed information.
Income and family size determine the amount of the EITC. The income amounts and the amount of EITC are adjusted for inflation each year.
We estimate that four out of five workers claim the EITC they earned. Help IRS reach the potentially qualifying workers who miss out on thousands of dollars every year on EITC. Help us educate them about the credit and motivate them to joint the four out of file who file and claim it. This includes workers who are: