Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for working people with low to moderate incomes who meet certain eligibility requirements. Because it's a refundable credit, those who qualify and claim EITC pay less federal tax, pay no tax or may even get a tax refund. EITC can mean a credit of up to $6,557 for working families with three or more qualifying children. Workers without a qualifying child may be eligible for a credit up to $529.
In addition to other requirements, to get the credit, people must have earned income and file a federal tax return — even if they don't owe any tax or aren't otherwise required to file.
Taxpayers should seek the advice of a tax professional to determine if they are eligible for EITC, determine if their child or children meet the tests for a qualifying child and estimate the amount of their credit.
Child Tax Cre…