TheEarned Income Tax Credit, or EITC, is a tax incentive that might be able to help.
Then well follow up with some frequently asked questions about the Earned Income Tax Credit.
What Is Earned Income Tax Credit?
The EITC is claimed when you file your tax return.
The EITC is acredit, not a deduction, which means it directly reduces the tax dollars you owe.
A deduction, on the other hand, reduces how much of your income issubject totaxation.
Who Qualifies for the Earned Income Tax Credit?
The first requirement is right there in the name: you must have earned income.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help… ## How Much Can You Get From the Earned Income Tax Credit?
Did you know?
Keep in mind that if you claim the EITC, your tax refund may bedelayed.
By law, the IRS cannot issue EITC refunds before mid-February.
Since the EITC is a credit, rather than a deduction, it comes directly off your tax liability.
If youre not sure whether you qualify, its best to consult with a tax professional.
The IRS has a Qualification Assistant tool to help determine your eligibility.
Reporting by Jamie Cattanach and freelancer Larissa Runkle is included in this story.
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