earned income credit

earned income credit definition - business

earned income credit

A tax credit or cash supplement available to certain low-income working individuals and families even if no tax has been withheld from wages. The U.S. Congress created the earned income credit in 1975 to help offset the Social Security payroll tax on low-income individuals and families.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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