Earned Income Tax Credit (EITC) is another term for the EIC, a federal tax benefit for low-to-moderate-income workers, offering a credit based on income and family size.
- What is Earned Income Tax Credit (EITC)?
Answer: It is a federal tax benefit for low-to-moderate-income workers based on income and family size. - How does EITC differ from other credits?
Answer: It is refundable, meaning it can exceed tax liability and provide a refund. - What are the income limits for EITC?
Answer: Limits vary annually, depending on filing status and number of children. - Who administers the EITC?
Answer: The Internal Revenue Service (IRS) administers it. - Why was EITC established?
Answer: It was created to support working families and incentivize employment.
