An earned income tax credit (EIC or EITC) is available from both the federal government and some state governments to eligible individuals and families who work. These tax credits can lower the amount of tax you owe, or, in some cases, give you a cash payment even if you don't owe any taxes. Earned income credits can offer substantial payments to low income workers, especially those who care for children. It could be worthwhile to see if you may claim an EIC, either on your state and/or federal income tax return.

Federal Earned Income Credit (EIC)

The Earned Income Credit (also called the Earned Income Tax Credit) is a federal program that provides a tax credit and frequently a cash payment to low-to-moderate income workers who qualify. The federal EIC is claimed by filing a federal tax return with the Internal Revenue Service.

State Earned Income Credit Programs

Many states and the District of Columbia have their own earned income credit tax programs, which are available to eligible workers who live in the state. In most instances, if you are eligible for the federal EIC, you will also be eligible for your state's EIC if it has one. A state EIC is claimed by filing a state income tax return.

EIC Eligibility Check

You can use the Internal Revenue Service's Earned Income Tax Credit Assistant to help you find out if you are eligible for the EIC and to estimate the amount of your credit.