Earned Income Tax Credit

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Earned Income Tax Credit

Also called the EITC. A dollar-for-dollar reduction in the tax liability for lower and middle income persons in the United States. The credit is applied against taxes owed on wages, salaries, tips and other forms of earned income. Investment income is excluded and one may not have more than a certain amount of investment income to be eligible for the credit. Households with children may receive larger credits. The EITC is refundable, meaning if the credit causes one's tax liability to go below zero, one receives the difference from the IRS.
References in periodicals archive ?
Providing access to free online tax services that assure lower-income members receive earned income credits and other state and federal tax credits is of tremendous value," Moody said.
In order to receive the Earned Income Credits, applicants are required to file state and federal income tax forms.
The deadline for the state and federal Earned Income Credits is April 15, 2009.
There will be no need for earned income credits, no take-backs, no give-backs, no puppeteering manipulations.
The bill protects, in bankruptcy cases, earned income credits given to lower-income working families by federal tax law.
When economic misfortune has fallen on them and you now snatch their earned income credit, you're really kicking these people when they're down.
The January change was boosted by cost-of-living adjustments to several Federal transfer payment programs, by increased Earned Income Credits, and by pay raises for Federal civilian and military personnel.
Exhibit I on page 319 compares the current effect on taxes and earned income credits to the future loss of social security benefits when $100 is sheltered in a medical care FSA.
However, $17 in earned income credit (EIC) would be lost.
The tax returns fraudulently claimed refunds based on fuel tax and earned income credits, the prosecutor said.
General questions concerning these and other earned income credits should be directed to the Internal Revenue Service, 800-829-3676.
An earned income credit applies to lower-income workers with one or more children who live with them.