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 ?
A bipartisan proposal introduced last week in the House Revenue Committee would accomplish that worthy goal by more than doubling the value of Oregon's earned-income tax credit, a tax break designed to help low-income families with child- ren.
18 to win legislative approval of a state earned-income tax credit for low-income workers.
President Clinton proposed expanding the earned-income tax credit, which provides an annual payment to 19 million working families at or near the poverty line.
And the earned-income tax credit, one of the best benefits for the working poor, was cut by $5 billion.
Right now, we're deeply involved in legislative battles as diverse as welfare reform, land mines, and the earned-income tax credit.
The earned-income tax credit can take a bite out of your tax bill.
The House Ways and Means Committee endorsed a $23 billion cut in the earned-income tax credit for low-income families.