Tax Planning & Compliance Blog

The Earned Income Tax Credit (EIC) is a refundable tax credit for low-income workers and families.  The credit, originally enacted in 1975, was designed to both reduce the burden of payroll taxes and supplement wages of those who were eligible.

The credit is claimed on one's individual income tax return.  In the past, employers were able to advance a portion of the credit to their eligible employees.  For tax-year 2011 and beyond, this will no longer be an option.  Due to a provision of HR 1586...