With some tax returns are already on the way for processing, the Internal Revenue Service (IRS) is reminding taxpayers not to forget about the Earned Income Tax Credit (EITC). The EITC is the federal government's most substantial refundable federal income tax credit for low- to moderate-income workers. It's literally in the name: Earned Income Tax Credit. Earned income does not include passive income, which means income that you aren't actively generating on your own, like interest and dividends, pay that you receive while incarcerated, retirement income, Social Security, unemployment benefits, and alimony. Taxpayers who claim the EITC or Additional Child Tax Credit (ACTC) may have to wait a little longer for their tax refunds that taxpayers who do not claim EITC or ACTC.

Source: Forbes January 31, 2020 14:48 UTC