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The EIC is a tax benefit for working people who earn lower or moderate incomes. The credit offsets taxes, supplements very low wages, and incentivizes work.
The EIC can help cover any federal income tax workers still owe at tax time. Besides offsetting taxes, workers earning lower wages may also get cash back through the EIC refund. Eligible workers who claim the EIC can receive a tax refund even if they do not owe income tax.
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