How does the earned income tax credit affect poor families? Q.How does the earned income tax credit affect poor families? A.The EITC is the single most effective means tested federal antipoverty program for working-age households—providing additional income and boosting employment for low-income workers. Read more about How does the earned income tax credit affect poor families?
What is the earned income tax credit? Q.What is the earned income tax credit? A.The earned income tax credit subsidizes low-income working families. The credit equals a fixed percentage of earnings from the first dollar of earnings until the credit reaches its maximum. The maximum credit is paid until earnings reach a specified level, after which it declines with each additional dollar of income until no credit is available. Read more about What is the earned income tax credit?
Do all people eligible for the EITC participate? Q.Do all people eligible for the EITC participate? A.The IRS and Census Bureau estimate that almost 80 percent of workers eligible for the earned income tax credit (EITC) claim it. Because people eligible for higher credits are more likely to claim the credit than those eligible for lower credits, about 85 percent of potential benefits are claimed each year. Read more about Do all people eligible for the EITC participate?