Earned Income Credit (EIC) is a refundable tax credit in the U.S. for low-to-moderate-income working individuals and families, aimed at reducing poverty and providing tax relief.
- What is Earned Income Credit (EIC)?
Answer: It is a refundable tax credit for low-to-moderate-income workers to reduce poverty. - Who is eligible for EIC?
Answer: Eligible individuals include those with earned income and qualifying children, meeting income limits. - How is EIC claimed?
Answer: It is claimed by filing IRS Form 1040 and Schedule EIC. - What are the benefits of EIC?
Answer: It provides financial relief and can result in a tax refund. - What happens if someone overclaims EIC?
Answer: Overclaiming may require repayment or affect future credits.
