Earned Income Credit

Research Report

Earned Income Credit

From The Encyclopedia of Taxation and Tax Policy
September 30, 1999


The income credit was originally enacted in 1975, and over the years it has grown to be one of the principal antipoverty programs in the federal budget. The credit is a refundable income tax credit for low-income working taxpayers. Three separate schedules apply, depending on how many qualifying children the taxpayer has. This entry defines the credit, provides its history, and analyzes its effects.

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