What is the Earned Income Tax Credit (EITC)?

Hi, I’m Dirk. I’m a tax expert with Intuit’s TurboTax and I’m here today to talk to you about the Earned Income Tax Credit.

What is the Earned Income Tax Credit?

It’s a tax credit available for those who are low- and moderate-income families and the benefit varies depending on whether you have children or not.

If you’re eligible for the Earned Income Tax Credit, you may receive up to $6,431 in the year 2018. The Earned Income Tax Credit increases, plateaus, and then begins to phase out as you earn more income. If you earn enough income, you won’t be eligible for it at all.

Also, some states have an Earned Income Tax Credit program that would be in addition to the federal Earned Income Tax Credit. So be sure to check if your state has this available.

While millions of households already claim this credit, the IRS says that many who are eligible do not claim this credit. To learn more, go to irs.gov.

Take Charge of Your Savings
Earn rewards for creating a brighter future
Sign up to save more

Recommended Articles

What is the Standard Deduction?

The standard deduction is the amount of income you get to deduct from your total taxable income. Because the standard deduction lowers your taxable income, it means you pay less income tax. In 2019, the standard deduction for someone filing as single is $12,200. For a Head of Household, the standard deduction is $18,350. And… Read more

How Does Volunteer Income Tax Assistance (VITA) work?

Volunteer Income Tax Assistance (VITA) is a program of the IRS. VITA sites offer income tax preparation help free of charge for people who generally make less than $56,000 annually, people with disabilities, and those with difficulty speaking English. The program is also offered on military installations. The offices are run by volunteers who have… Read more

Do I Need to File a Tax Return?

Hi, I’m Kasey, and I’m a tax expert here with Intuit’s TurboTax. I’m here today to talk about some frequently asked questions that many taxpayers have. Do I need to file? Not everyone is required to file a tax return every year. Generally, if your income doesn’t exceed certain thresholds, you don’t even have to file a return. The… Read more