EITC (or EIC), Earned Income Tax Credit, is a benefit for working people who have low to moderate income. A tax credit means more money in your pocket. It reduces the amount of tax you owe and may also give you a refund.
You must have earned income to qualify for this credit and there are limitations. Please refer to the instructions at www.irs.gov. https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/do-i-qualify-for-earned-income-tax-credit-eitc
What is Earned Income?
Earned income includes all the taxable income and wages you get from working for someone else or you own or run a business or farm.
Taxable earned income also includes:
- Wages, salaries, and tips
- Union strike benefits
- Certain disability benefits received before you reach minimum retirement age
- Net earnings from self-employment