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.
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.