Earned Income Tax Credit

The Earned Income Tax Credit (EITC) is a federal program that provides low to moderate-income workers, including many who are poor, with extra income through tax refunds. It also encourages low-income parents to go to work by lowering their tax rate and providing a financial bonus for their work effort. Congress originally approved the tax credit in 1975 partly to help offset the burden of social security taxes for families and to provide an incentive to work. When the credit exceeds the amount

Earned income tax credit: Who can file: EITC Income Limits, Maximum Credit Amounts and Tax Law Updates |   | Here are the 2010 tax year income limits, maximum EITC amount and the EITC-related tax law changes. You can also access the information for: * Preview of 2011 Tax Year * 2009 Tax Year  * 2008 Tax Year * 2007 Tax YearReturn to EITC Home Page2010 Tax YearEarned Income and adjusted gross income (AGI) must each be less than: * $43,352 ($48,362 married filing jointly) with three

The Earned income tax credit can be defined as a way for workers who have a moderate annual income rate to receive a reduction in federal income as well as their payroll taxes. The credit was established with specifically low-income status workers as the main target, and this was due to the fact that the EITC is a refundable credit. Since its establishment in the year of 1975 the EITC has been modified about several times, it was originally set up with a goal to combine an incentive for having employment

Earned Income Tax Credit Evaluation Meyer (2010) states that since the birth of the EITC in 1975 it has grown dramatically in size and is now the largest antipoverty program for the non-aged in the United States. Meyer (2010) continues that “in 2007, 25 million families received EITC payments totaling $49.7 billion.” Meyer (2010) avers that “as a result, the EITC lifted at least 4.0 million individuals above the poverty line.” Meyer (2010) further continues to explain that “in addition to directly

The Earned Income Tax Credit (EITC) is a program that was set in place, in 1975, to improve “the economic status of low-income persons […] granting nearly $40 billion to low-income households” (Borjas, 59). As is clear from the name of the program, The EITC is a program that provides tax credits to those who qualify, the EITC could even produce a negative tax liability for some households, in particular the type I will discuss, which would provide substantial income increases for these households

Introduction This report examines the provisions, purpose, and impact of the Earned Income Tax Credit (EITC). It will consider both positive and negative arguments for the program, and review suggested alternatives. Finally, it will give supporting evidence as to why the EITC is a flawed, yet overall beneficial program for the nation’s war against poverty. As one of the most heavily debated tax issues since the 90s, the EITC is an important anti-poverty program that requires attention and understanding

Halpern-Meekin, S. (2015). “Dignity and Dreams What the Earned Income Tax Credit (EITC) Means to Low-Income Families.” I will be comparing to Eissa, Nada and Jeffrey B. Liebman. 1996’s article “Labor Supply Response to the Earned Income Tax Credit.” In the article Sykes, J., Križ, K., Edin, K., & Halpern-Meekin, S. (2015). “Dignity and Dreams What the Earned Income Tax Credit (EITC) Means to Low-Income Families.” explore what meanings these low-income workers ascribed to this money and how these meanings

of the Michigan Earned Income Tax Credit on The Economy and Working Families Shereca Gordon Social Welfare and Social Justice Professor: Linda Werthman, R.S.M., PH.D., LMSW December 1, 2014   Michigan EITC 2 Abstract The state of Michigan’s Earned Income Tax Credit is a good anti-poverty mechanism for low and moderate income working families. The Michigan credit was an effective technique for achieving a reduction of the poverty rate in 2011. The Michigan Earned Income Tax Credit targets a certain

subjectively selected the Earned Income Tax Credit (EITC), based on my personal experience with the policy and from curiosity as how the mechanisms of the policy truly operate. With that being said, “the United States federal Earned Income Tax Credit or Earned Income Credit (EITC or EIC) is a refundable tax credit for low to moderate income individuals and couples – particularly those with children” (IRS, 2013). In this paper, I will first introduce the Earned Income Tax Credit policy followed by the

It can be to your advantage to claim your Self-Employment income on your annual Income Tax Return than popularly believed. Claiming an Earned income may be favorable to you and your family. If your only job is your personal business, claiming the income on your tax return can compensate your family now plus in the future. Filing properly can even assist someone else by creating a paper trail for their claimed deduction. Your future retirement or even Social Security disability benefits are influenced