I think you misunderstand the name. It is not the tax credit that is earned. It is the income that is earned.
If you earn some income, then you get a tax credit.
It’s perverse, but so is welfare. It is an incentive to get people to work. Without it, those who wanted to work would be penalized by loss of other benefits.
Yes, it is a benefit. No argument there.
Thanks for the explanation. Another welfare term that irks me to no end is “entitlements.”