How does the Earned Income Credit (EIC) work?

Earned Income Credit (EIC) is a special tax benefit for people who work. Eligible families and single workers can file federal and state income tax returns and a "Schedule EIC" form. If a qualifying family owes income tax, EIC reduces the amount of taxes owed. If your EIC is more than your tax bill (even if you dont owe any taxes) you will receive a check for the difference. Families already due a refund get the amount of the EIC added to the refund check. There are two ways to get the credit - when you file your tax return or in your paycheck, by having it paid to you "in advance" (Advance EIC). For possible further benefits, check your old tax records or complete an Earned Income Credit Advance Payment Certificate. If you qualified in past years, you may file for an EIC up to three years retroactively. Q. Am I eligible? Those eligible include: • Single workers between the ages of 25 and 64 and earning $11,060 or less per year are eligible for up to $376. • Families earning $30,201 ...  more