Earned Income Tax Credit
E52960
The Earned Income Tax Credit is a refundable federal tax credit in the United States that supplements the wages of low- to moderate-income workers, particularly those with children, to reduce poverty and encourage employment.
Observed surface forms (1)
| Surface form | Occurrences |
|---|---|
| EITC | 1 |
Statements (52)
| Predicate | Object |
|---|---|
| instanceOf |
anti-poverty program
ⓘ
federal tax credit ⓘ income support program ⓘ refundable tax credit ⓘ |
| administeredBy | Internal Revenue Service ⓘ |
| administrationMethod | claimed on annual federal income tax return ⓘ |
| alsoKnownAs |
Earned Income Tax Credit
ⓘ
surface form:
EITC
Earned Income Credit ⓘ |
| appliesTo |
low-income workers
ⓘ
moderate-income workers ⓘ |
| basedOn |
adjusted gross income
ⓘ
earned income ⓘ filing status ⓘ number of qualifying children ⓘ |
| benefitType | refundable credit payable even if no income tax is owed ⓘ |
| country |
United States of America
ⓘ
surface form:
United States
|
| createdBy | United States Congress ⓘ |
| economicEffect |
increases after-tax income of eligible workers
ⓘ
provides work incentive through earnings subsidy ⓘ |
| effectOnTaxes |
can generate tax refund
ⓘ
reduces federal income tax liability ⓘ |
| eligibilityCriterion |
cannot use married filing separately status
ⓘ
investment income must not exceed statutory limit ⓘ must be U.S. citizen or resident alien for the tax year ⓘ must file a federal income tax return ⓘ must have earned income from employment or self-employment ⓘ must have valid Social Security number ⓘ qualifying child must have valid Social Security number ⓘ qualifying child must meet age test ⓘ qualifying child must meet relationship test ⓘ qualifying child must meet residency test ⓘ |
| fundingSource | federal government ⓘ |
| introducedInYear | 1975 ⓘ |
| isRefundable | true ⓘ |
| legalBasis |
Internal Revenue Code
ⓘ
surface form:
Internal Revenue Code section 32
|
| phaseInStructure | credit increases with earnings up to a maximum ⓘ |
| phaseOutStructure | credit decreases as income rises above a threshold ⓘ |
| policyGoal |
encourage employment
ⓘ
reduce poverty ⓘ supplement wages ⓘ support working families ⓘ |
| primaryBeneficiaries | workers with children ⓘ |
| programType | means-tested benefit ⓘ |
| relatedProgram |
Additional Child Tax Credit
ⓘ
Child Tax Credit ⓘ state earned income tax credits ⓘ |
| requiresEarnedIncome | true ⓘ |
| requiresForm | Schedule EIC for taxpayers with qualifying children ⓘ |
| scope | nationwide in the United States ⓘ |
| secondaryBeneficiaries | childless workers ⓘ |
| targetPopulation |
low-income families with children
ⓘ
working poor ⓘ |
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.
this entity surface form:
EITC