Earned Income Tax Credit

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Definition: Earned Income Tax Credit


Earned Income Tax Credit


Full Definition of Earned Income Tax Credit


The earned income tax credit (EITC) is a tax refund program geared toward low-income workers. The earned income tax credit offers non-wastable tax credits. These earned income tax credit refunds come in a form of prepackaged payments made toward tax liabilities. Earned income tax credit qualifications, which determine the size of the earned income tax credit package, are governed by factors such as income and the number of children. Approved by Congress in 1975, the earned income tax credit was a significant and multifaceted poverty relief effort. As such, the earned income tax credit aims to alleviate low-income families’ tax burdens associated with Social Security and Medicare withholdings. Furthermore, the earned income tax credit program creates employment incentives for lower-income workers.


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Definition Sources


Definitions for Earned Income Tax Credit are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February, 2020 | 0 Views.