EIC or EITC Definition | Earned Income Tax Credit (Refundable)

EIC or EITC Definition

Stands for Earned Income Tax Credit. A refundable Federal Income Tax credit for working individuals and families with low to moderate income.

EIC/EITC Extended Definition
This is a tax credit for qualifying individuals who don’t earn a high income. Taxpayers receive the tax credit when they file their personal tax return. The IRS no longer allows the employee to receive advanced payments of more than half of their EIC in their paychecks throughout the year.

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Last Updated By

Jenna Hutkowski | Apr 13, 2023

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