The Earned Income Tax Credit (EITC) is a refundable tax credit aimed at helping low- to moderate-income working individuals and families, particularly those with children. It serves to reduce the amount of tax owed and may result in a refund.
A refundable credit is a tax credit that is paid to a taxpayer even if the amount of the credit exceeds the taxpayer's total tax liability. Notable examples include the Earned Income Tax Credit (EITC) and taxes withheld on wages.
The Supplemental Young Child Credit is a component of tax policy aimed at providing additional financial support to families with young children. This credit is often integrated within broader tax credit programs, such as the Earned Income Tax Credit (EITC) in the United States, to reduce the tax burden for qualifying taxpayers with dependent children.
