A low-income worker who qualifies for the EIC, Earned Income Tax Credit, could have a credit that is more than the federal taxes withheld.

Question

Quizplus · Accepted Answer

The EIC is a refundable tax credit, which means that if the credit exceeds the amount of taxes owed, the taxpayer will receive the excess credit as a refund. This can result in a situation where the EIC is greater than the federal taxes withheld from the worker's pay.

A Low-Income Worker Who Qualifies for the EIC, Earned Income