Who Qualifies

• The earned income credit is available to people with earned income from a job or self-employment. The amount of the credit varies depending on income, number of children and filing status.
  
  

Function

• The earned income credit helps low- and moderate-income households recoup some of the costs of paying payroll taxes such as FICA. The credit offsets taxes owed and taxpayers can receive the credit directly in their paycheck to increase take-home pay.
  
  

Features

• The earned income credit is refundable. This means you will be able to receive any portion of the credit that is left over after your tax liability has been reduced to zero in your tax refund. Households with children could receive up to $5,657 as of the tax year 2009.