EITC (Earned Income Tax Credit)

The Earned Income Tax Credit (EITC) is a tax benefit designed to help low- to moderate-income working individuals and families. It reduces the amount of tax owed and can result in a refund, making it easier for recipients to afford basic needs. The credit amount varies based on income, filing status, and number of children. To qualify, taxpayers must have earned income from work and meet certain income thresholds. The EITC aims to incentivize employment and lift people out of poverty by providing additional financial support for those who are working but earning low wages.