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Earned Income Credit (EIC)

What is 'Earned Income Credit - EIC'

A tax credit in the United States which benefits certain taxpayers who have low incomes from work in a particular tax year. The earned income credit (EIC) reduces the amount of tax owed on a dollar-for-dollar basis, and may result in a refund to the taxpayer if the amount of the credit is greater than the amount of tax owed.

Explaining 'Earned Income Credit - EIC'

In order to qualify for the EIC, taxpayers must have earned income from work which is less than certain income limits and also meet a series of eligibility requirements. The eligibility requirements include: the taxpayer must have a qualifying child, or if the taxpayer does not have a qualifying child, the taxpayer must be between the ages of 25 and 65, live in the U.S. for more than half of the year and not qualify as a dependent of another person.


Further Reading


The impact of family income on child achievement: Evidence from the earned income tax credit
www.aeaweb.org [PDF]
… an attempt to identify the effect of family income separately from employment and welfare … family income, which we aggre- gate into three categories of pretax/EITC income: earned income, unearned income … While the NLSY contains a broad array of income questions, it does not …

Periodic Earned Income Tax Credit (EITC) payment, financial stress and wellbeing: a longitudinal studyPeriodic Earned Income Tax Credit (EITC) payment, financial stress and wellbeing: a longitudinal study
link.springer.com [PDF]
… an attempt to identify the effect of family income separately from employment and welfare … family income, which we aggre- gate into three categories of pretax/EITC income: earned income, unearned income … While the NLSY contains a broad array of income questions, it does not …

The earned income tax credit and the limitations of tax-based welfare reformThe earned income tax credit and the limitations of tax-based welfare reform
www.jstor.org [PDF]
… an attempt to identify the effect of family income separately from employment and welfare … family income, which we aggre- gate into three categories of pretax/EITC income: earned income, unearned income … While the NLSY contains a broad array of income questions, it does not …

Material hardship among banked and unbanked earned income tax credit-eligible familiesMaterial hardship among banked and unbanked earned income tax credit-eligible families
www.tandfonline.com [PDF]
… an attempt to identify the effect of family income separately from employment and welfare … family income, which we aggre- gate into three categories of pretax/EITC income: earned income, unearned income … While the NLSY contains a broad array of income questions, it does not …

Earned income tax credit policies: Impact and optimality: The Adam Smith Lecture, 2005Earned income tax credit policies: Impact and optimality: The Adam Smith Lecture, 2005
www.sciencedirect.com [PDF]
… an attempt to identify the effect of family income separately from employment and welfare … family income, which we aggre- gate into three categories of pretax/EITC income: earned income, unearned income … While the NLSY contains a broad array of income questions, it does not …

The Earned Income Tax Credit as an Incentive to Report: Engaging the Informal Economy Through Tax PolicyThe Earned Income Tax Credit as an Incentive to Report: Engaging the Informal Economy Through Tax Policy
heinonline.org [PDF]
… an attempt to identify the effect of family income separately from employment and welfare … family income, which we aggre- gate into three categories of pretax/EITC income: earned income, unearned income … While the NLSY contains a broad array of income questions, it does not …

Welfare, the earned income tax credit, and the labor supply of single mothersWelfare, the earned income tax credit, and the labor supply of single mothers
academic.oup.com [PDF]
… an attempt to identify the effect of family income separately from employment and welfare … family income, which we aggre- gate into three categories of pretax/EITC income: earned income, unearned income … While the NLSY contains a broad array of income questions, it does not …

Dignity and dreams: What the Earned Income Tax Credit (EITC) means to low-income familiesDignity and dreams: What the Earned Income Tax Credit (EITC) means to low-income families
journals.sagepub.com [PDF]
… an attempt to identify the effect of family income separately from employment and welfare … family income, which we aggre- gate into three categories of pretax/EITC income: earned income, unearned income … While the NLSY contains a broad array of income questions, it does not …

Income mobility and the Earned Income Tax Credit: Short-term safety net or long-term income supportIncome mobility and the Earned Income Tax Credit: Short-term safety net or long-term income support
journals.sagepub.com [PDF]
… an attempt to identify the effect of family income separately from employment and welfare … family income, which we aggre- gate into three categories of pretax/EITC income: earned income, unearned income … While the NLSY contains a broad array of income questions, it does not …

The long-term impact of the earned income tax credit on children's education and employment outcomesThe long-term impact of the earned income tax credit on children's education and employment outcomes
www.journals.uchicago.edu [PDF]
… an attempt to identify the effect of family income separately from employment and welfare … family income, which we aggre- gate into three categories of pretax/EITC income: earned income, unearned income … While the NLSY contains a broad array of income questions, it does not …



Q&A About Earned Income Credit (EIC)


What is the earned income credit?

The earned income credit (EIC) is a tax credit in the United States that benefits certain taxpayers who have low incomes from work in a particular tax year.

Who qualifies for the EIC?

Taxpayers must have earned income from work which is less than certain income limits and also meet a series of eligibility requirements. The eligibility requirements include

How much money can you receive from this tax benefit?

You can receive up to $496 if you do not have any children and up to $6,044 if you do have one or more children under age 17 at home with you.

What are some examples of taxpayers who may qualify for this credit?

Some examples of taxpayers who may qualify for this credit are those with children under 18 years old, disabled persons or senior citizens over 65 years old living on their own income.

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