The Earned Income Tax Credit (EITC) is a federal tax benefit for low and moderate-income workers who are eligible for and claim the credit. The credit reduces the impact of payroll and income taxes paid by these workers, supplements the earnings of very low-wage workers, and may be returned in the form of an IRS refund check.

Many families with children who qualify for the EITC may also be eligible for the Child Tax Credit (CTC), which reduces federal income tax liability. Some low-wage families who don't earn enough to owe income tax may still qualify for a CTC refund.