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.
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References in periodicals archive ?
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.
* Earned-income tax credit. The tax credit to working-poor families was also increased.
The earned-income tax credit can take a bite out of your tax bill.
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.
He has called for an $11 million package of tax credits and subsidies for all poor households, including $4.5 million for an earned-income tax credit and $6.5 million in new spending for childcare, health insurance, housing, transportation and job training.
The House Ways and Means Committee endorsed a $23 billion cut in the earned-income tax credit for low-income families.
With the earned-income tax credit, a steady, low-wage job yields a nonpoverty income.
For two decades now, the federal budget has provided an earned-income tax credit for families headed by full-time workers whose income falls below the poverty line.
The report calls for higher taxes on the rich and on corporations, more generous unemployment benefits, bigger earned-income tax credits for low-wage earners, and government policies that promote union organizing.