An Earned Income Tax Credit (EIC or EITC) is available from the federal government and from some state governments to eligible individuals and families who work. Earned income 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 with children.

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. To claim the federal EIC, you must file a federal income 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 for 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. To claim the state EIC, you must file 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.