The Earned Income Tax Credit (EITC) is a special credit that helps working taxpayers in lower income levels. If you qualify, the EITC will reduce the amount of tax you owe and potentially give you a refund from the IRS.
Even if you do not owe taxes or are not required to file a tax return according to IRS regulations, you can still take advantage of the credit. However, in order to do so, you do need to file a return to claim it.
To qualify, you must have earned income from an employer or from running or owning a business and meet a few other basic rules. Check out “7 FAQs about the Earned Income Tax Credit” to learn more.
Luckily, when preparing your tax return using TaxAct, the software calculates the EITC for you if it applies to your tax situation.