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AFI Tool What is Earned Income and Earned Income Tax Credit

Published: April 26, 2012
Assets for Independence (AFI)
Guidance, Policies, Procedures, Tools

Earned income includes all the taxable income and wages you get from working.

Visit the IRS Web site for more information.

EITC, the Earned Income Tax Credit, sometimes called EIC is a tax credit to help you keep more of what you earned. refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file.

Visit the IRS Web site for more information.