Plain-English definitions for the terms you'll encounter on your financial journey.
A refundable tax credit aimed at low- to moderate-income working individuals and couples, particularly those with qualifying children. It reduces the amount of tax owed and can result in a direct refund if the credit exceeds the tax liability.
The Earned Income Tax Credit is a refundable tax break for low-to-moderate-income working individuals and couples, particularly those with children. It is designed to put extra money back into your pocket at tax time to help make ends meet.