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 ?
The cliff effect associated with the Earned Income Tax Credit is not, however, intended to measure income but to serve as a proxy for a taxpayer's level of assets: in 1995, Leslie Samuels, then-Assistant Secretary of Tax Policy for the Department of Treasury, testified to the House Ways and Means Committee that the cap on investment income comes from a belief that "it is inappropriate to provide the Earned Income Tax Credit to taxpayers with assets which can generate $1000 of investment income.
Iowa recipients shared a portion of more than $6 million in federal earned income tax credits and $16 million in federal tax refunds.
But many people don't realize that the Earned Income Tax Credit does not count as income in determining eligibility for benefits like cash assistance, Medicaid, food stamps, SSI, or public housing.
2007 Season Results PERFORMANCE INDICATORS ALL CLIENTS # filing returns 6,243 Total federal refunds claimed $8,946,529 Total Earned Income Tax Credit $3,009,283 # claiming Earned Income Tax Credit 1,678 29.
The Earned Income Tax Credit (EITC) is one of the most significant cash-transfer programs for low-income families in the United States.
He's clearly right to support an expansion of the Earned Income Tax Credit, under which government supplements the wages of low-income workers: The program is directly targeted at the working poor and is easy to administer.
For more information on the Earned Income Tax Credit, child Tax Credit or other tax issues, contact a unit tax advisor or finance office.
Activists say that's so the companies can get a slice of the Earned Income Tax Credit, which in Illinois averaged about $1,726 last year.
The Children's Services Council of Broward County is leading an effort to promote the Earned Income Tax Credit and is seeking volunteers to help working families obtain the credit.
They will be counting up their personal oil profits while Americans face deep cuts in Temporary Assistance to Needy Families, the Earned Income Tax Credit, food stamps, and education at all levels.
As a low-income parent she's entitled to receive the Earned Income Tax Credit, a federal tax rebate for low-income working families and individuals.
Assist low-income families with "refundable" tax credits, an expansion of the Earned Income Tax Credit, and an increase in the minimum wage.