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The EITC was enacted in 1975. Substantial expansions were adopted in 1986, 1990, and 1993. The credit goes only to households with earnings, with the size of the credit initially rising as earnings increase. EITC benefits both offset taxes and, frequently, provide a wage supplement.
In general, disqualifying income is investment income such as taxable and tax-exempt interest, dividends, childs interest and dividend income reported on the return, childs tax-exempt interest reported on Form 8814, line 1b, net rental and royalty income, net capital gain income, other portfolio income, and net
The federal EITC requires filing your federal tax return (form 1040EZ, 1040 or 1040A) and the Schedule Earned Income Credit which can be found in the Federal Income Tax Return Booklet. General information about Tax Credits can be found on the IRS and FTB webpages.
credit and enacted on a temporary basis as part of the Tax Reduction Act of 1975 (P.L. 94-12). As originally enacted, the credit was equal to 10% of the first $4,000 in earned income. Hence, the maximum credit amount was $400 (which would have equaled about $950 in 2019 dollars, as illustrated in Figure 2).
It was not until the Tax Reduction Act of 1975 was signed by Gerald Ford on March 29, 1975, that this policy found a place in law. Among other provisions, the law created the first refundable tax credit, the earned income tax credit, on a temporary basis.
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Your refund By law, the IRS cannot issue EITC and ACTC refunds before mid-February. The IRS expects most EITC/Additional CTC related refunds to be available in taxpayer bank accounts or on debit cards by March1, if they chose direct deposit and there are no other issues with their tax return.
What is the EIC? The EIC is a tax credit for certain workers who have a qualifying child (defined later). The credit has three parts: basic credit, extra credit for child born in 1993, and health insurance credit. For 1993, the basic EIC can be as much as $1,434 ($1,511 if you have more than one qualifying child).
To file a prior year tax return, complete and file Form 1040 and a Schedule EIC, if you had a qualifying child. If you filed a tax return for those years, but didnt claim the EITC and you were eligible, file an amended return. See Tax topic 308, Amended Returns.

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