The Earned Income Credit (EIC), also known as the Earned Income Tax Credit (EITC), is a federal income tax credit for lower income workers who are eligible for and claim the credit. This reduces the amount of tax an individual owes and previously (see note) could be added to their paychecks in the form of a credit. More Information: Search the
IRS Web Site for "Earned Income Tax Credit" or "EITC".
Note: Beginning in 2011 EIC is no longer advanced to people on individual paychecks. Therefore it is not necessary to assign the EIC credit to them as the amount added to their checks would be zero. See IRS questions about the Advanced Earned Income Credit.