What is the Earned Income Credit (EIC)?
The earned income credit is a tax credit for certain taxpayers who work and have earned income. Taxpayers who qualify for and claim the federal earned income credit are allowed a refundable credit equal to 15% of the federal amount. If the credit due the taxpayer exceeds the amount of the total income tax payable for the year by the taxpayer, the excess amount of the credit will be refunded to the taxpayer without interest.
