Earned Income Tax Credit Law and Legal Definition

Earned Income Tax Credit is a kind of tax designed to encourage low-income workers. It is refundable and helps taxpayers to overcome the burden of U.S. payroll taxes. It is a tax credit given to a certain group of people who meet certain requirements, and have earned income under a specified limit. United Kingdom, Canada, Ireland, New Zealand, Austria, Belgium, Denmark, Finland, Sweden, France and the Netherlands have similar programs like the earned income tax credit.