In this tax tutorial, you will learn about the Earned Income Credit. A tax credit is a dollar-for-dollar reduction of the tax.

The earned income credit is a tax credit for certain people who work and whose earned income and adjusted gross income are under a specified limit. To see the specified limits for the current year or prior years, go to Earned Income Tax Credit (EITC).

There are many rules that apply to the earned income credit.

At the same adjusted gross income level, taxpayers

• filing a joint return with three or more qualifying children receive the highest earned income credit.
• filing a joint return with no qualifying children receive the lowest earned income credit.

Eligible taxpayers can receive the earned income credit even if their tax is zero.