The Earned Income Credit (EIC, also known as EITC, Earned Income Tax Credit) is a refundable credit available to taxpayers with and without children. In order for a taxpayer to receive EIC, the taxpayer must qualify by meeting certain rules and must file a return even if he does not owe federal taxes, doesn’t meet the filing requirements for his filing status, and does not have federal income taxes withheld from his pay.
The taxpayer must have earned income to be eligible for the “earned income credit.” Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. The taxpayer may choose to include nontaxable military pay in earned income for purposes of the EIC.
To be eligible for the EIC, the taxpayer must meet all the rules explained in the “Earned Income Credit Rules” charts below: