Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) is a tax benefit designed to assist low- to moderate-income working individuals and families. It reduces the amount of tax owed, and in many cases, it can result in a refund even if no taxes were withheld. The credit amount varies based on income, filing status, and number of children, incentivizing employment while providing financial support. The EITC aims to alleviate poverty, encourage work, and help families achieve economic stability. To qualify, individuals must meet certain income limits and file a tax return, even if they owe no taxes.