What is Earned Income Tax Credit (EITC)?
Definition The earned income tax credit is a refundable credit for low-to-moderate-income workers, with the amount based on earned income, filing status, and number of qualifying children. Because it is refundable, it can produce a refund larger than the tax withheld. Eligibility rules are detailed, and the credit is a common focus of IRS review.
It delivers meaningful relief to working families, and careful eligibility checks help clients claim it correctly while avoiding costly errors.