What is Earned Income Credit?
The Earned Income Tax Credit or the EITC is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.
To qualify, taxpayers must meet certain requirements and file a tax return, even if they do not have a filing requirement.
Do I qualify for Earned Income Credit?
To qualify for EITC you must have earned income from employment, self-employment or another source and meet certain rules. Also, you must either meet the additional rules for workers without a qualifying child or have a child that meets all the qualifying child rules for you.
Use the IRS online tools to see if you qualify >>
Earned Income Credit in Illinois and Wisconsin
If you qualify to claim EITC on your federal income tax return, you also may be eligible for a similar credit on your state or local income tax return.
Illinois, Indiana, Iowa and Wisconsin are just a few of the states which offer an Earned Income Credit.
Want to know when to expect your income tax refund? Only the IRS can tell you for sure, visit their website and use their online tools for more.
