Some very low income workers that get the EIC end up with a net payment.
TIL!
Every tax form I’ve ever filled out has an instruction like:
> Enter the lesser of lines X and Y
when applying deductions and credits to prevent them from exceeding some value.
I’m surprised to learn that the EIC isn’t clamped like this.
As noted elsewhere, the EITC is a so-called "refundable" credit. It wouldn't serve its intended purpose if it wasn't refundable.
It is a refundable credit
TIL!
Every tax form I’ve ever filled out has an instruction like:
> Enter the lesser of lines X and Y
when applying deductions and credits to prevent them from exceeding some value.
I’m surprised to learn that the EIC isn’t clamped like this.
As noted elsewhere, the EITC is a so-called "refundable" credit. It wouldn't serve its intended purpose if it wasn't refundable.
It is a refundable credit