What is the Earned Income Tax Credit (EITC) and who qualifies?
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Explanation
The EITC is one of the most significant tax benefits for working individuals with low-to-moderate incomes. It is refundable, meaning it can generate a refund even if you owe no tax. The credit amount varies based on income, filing status, and number of children. Millions of eligible taxpayers fail to claim it each year.
Tax planning throughout the year, rather than just at filing time, can help you take advantage of deductions, credits, and tax-advantaged account contributions.