EITC (Earned Income Tax Credit) Definition
EITC, or Earned Income Tax Credit, is a refundable federal income tax credit for working individuals and families with low to moderate income.
EITC Extended Definition
The EITC 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. As of January 1, 2011, the IRS no longer allows employees to receive advanced payments of more than half of their EITC in their paychecks throughout the year.
What Is the Earned Income Tax Credit, and How Does it Work?
Last Updated By
Rachel Blakely-Gray | Apr 13, 2023