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

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EIC or EITC Definition

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

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.

Related Blog Articles:
A Quick Update for Employers on the Earned Income Tax Credit
Earned Income Credit – What Is It and How Does It Work?

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