The purpose of the earned income tax credit is to offer tax savings to workers with relatively modest incomes. Despite the fact that the income limits on eligibility extend well into what most would consider to be the middle class, the largest credits are reserved for those with incomes significantly below the upper limits.

 

The credit reduces any federal income tax you owe, dollar-for-dollar. If the credit completely eliminates your tax bill, and some credit is still left over, you can actually get a cash refund for the remaining  amount.

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The tax year 2023 maximum Earned Income Credit amount is $7,430 for qualifying taxpayers who have three or more qualifying children.