What is the EITC?

The Earned Income Tax Credit (EITC) is a federal tax credit for people who work and have low to moderate earned incomes. The EITC reduces the amount of federal taxes owed and may also provide a refund.

Because the EITC puts money back into the pockets of low-income families, the EITC has been called one of the largest and most effective poverty-reduction programs in the nation.  Each year, the federal EITC lifts millions of people out of poverty.  In 2018, the EITC lifted about 5.6 million people out of poverty, including about 3 million children.

Which states have an EITC?

Read about the basics of the EITC.

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