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.