Many people work hard to provide for their families and have a hard time making ends meet. However, the Earned Income Tax Credit (EITC) is a powerful benefit for those who work, because the credit simply puts money back into the pockets of those who need it the most.
The EITC has been successful at encouraging people, particularly single mothers, to work.
By claiming the credit nearly 27 million low-income individuals received about $59.5 billion in 2011, with refunds averaging $2,240, according to the Internal Revenue Service (IRS).
Nationally, the EITC has helped an estimated 6.3 million people escape poverty in 2010, according to the Center on Budget and Policy Priorities. The purpose of the credit is to offset taxes, supplement low wages and serve as an incentive to work. Eligible workers can pay fewer taxes, and some may even get a check from the IRS.
Families with three or more children may receive a credit of up to $5,891 for their 2012 taxes. The maximum credit is $5,236 for families with two children, $3,169 for families with one child and just $475 for those without children.
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