Earned Income Credit (EIC) (EIC)

The earned income tax credit (EIC) reduces the income tax of that certain low-income taxpayers would otherwise owe. It's a refundable credit, so if the tax that's due is less than the amount of the credit, the difference is paid to the taxpayer as a refund.

To qualify for the EIC, a taxpayer must work, earn less than the government's ceiling for his or her filing status and family situation, meet a set of specific conditions, and file the required IRS schedules and forms.

A tax credit for certain people who work, meet certain requirements, and have earned income under a specified limit.