The earned income tax credit, also known as the EITC or EIC, is a refundable tax credit for low- and moderate-income workers. The earned income tax credit is a tax credit that offers a tax exemption to low-income workers and families based on their salaries, tips and other payments, as well as income from self-employment. The IRS provides useful information on eligibility on its “Who Qualifies for the Earned Income Tax Credit (EITC)” website. To apply for the Earned Income Tax Credit (EITC), you must have what qualifies as earned income and meet certain adjusted gross income (AGI) and credit limits for the current, previous and future tax years.
This website provides information to help the public understand the child tax credit and anticipate child tax credit payments. If the credit you receive is worth more than the taxes you owe, you'll receive the rest of the money through your federal income tax refund. Earned income tax credits (EITC) are a common strategy used by governments to strengthen the economic security of low-income working families, especially those with children. Receiving the earned income tax credit will not change the amount you receive from any other federal benefit, including unemployment insurance, Medicaid, SNAP (formerly food stamps), SSI, SSDI, TANF, WIC, Section 8, or Public Housing.
The federal EITC is a tax credit that reduces the amount of federal income tax due and is refundable if the taxpayer's credit is greater than their tax liability. If you haven't filed a tax return before or don't file it every year and you're eligible for the Earned Income Tax Credit, be sure to apply for the EITC this year. The IRS provides detailed information on other, less common factors that may affect whether a child qualifies for the Earned Income Tax Credit. The amount of a tax credit is determined primarily by income level, marital status, and the number of dependent children.
When you apply for the earned income tax credit on your federal tax return, you may be able to get a similar credit on your state or local income tax return. The IRS provides detailed information on the types of income that are counted as earned income for the purposes of the Earned Income Tax Credit. If you are eligible to receive the earned income tax credit, this will reduce the amount of federal income tax you must pay. State earned income tax credits provide an additional benefit to the federal credit for low-income taxpayers by reducing their state income tax liability.
To find out if you're eligible and how long you can expect, see Additional New York State Tax Payments for Children and Earned Income.