What is the federal EITC?
* The Earned Income Tax Credit (EITC) is a federal tax credit for low-income working individuals and families. It is intended to reduce the tax burden on low-income workers, supplement their wages, and assist in the welfare-to-work transition. Even workers whose income is too small to pay taxes can receive a refund of the EITC, which provided over $34 billion to 19.3 million low-income families in 2003.