Earned Income Tax Credit

The Earned Income Tax Credit (EITC) is a refundable tax credit aimed at supporting low to moderate-income working individuals and families in the U.S. Unlike standard tax deductions, the EITC is designed to reward employment by reducing the tax burden and increasing take-home pay.

What is an earned income tax credit?

The Earned Income Tax Credit is a federal benefit for working individuals and families with low to moderate income. It reduces the amount of taxes owed and may result in a refund, even if no tax is due. Its purpose is to supplement wages and incentivize employment.

What is an example of unearned income?

Unearned income includes money received without active work involvement, such as:

Interest and dividends
Capital gains
Rental income
Pensions and annuities
Social Security benefits
Unemployment compensation

What is the difference between earned and unearned income?

Earned income is wages, salaries, tips, and net earnings from self-employment—income earned through work.

Unearned income is money from sources like investments, benefits, or property that does not involve active work.

What is the Earned Income Tax Credit for 2025?

For the 2025 tax year, the Earned Income Tax Credit (EITC) offers:

Up to $8,046 for families with 3+ children
$7,152 for 2 children
$4,328 for 1 child
$649 for no children

Eligibility depends on income, filing status, and number of qualifying children. The investment income limit is $11,950.

What is the importance of EITC in the U.S. tax system?

The EITC is one of the most effective tools for reducing poverty in the U.S. It:

Supplements wages for working individuals and families
Lifts millions of people, especially children, above the poverty line
Encourages employment over dependency on welfare
Stimulates local economies by increasing consumer spending

Who qualifies for Earned Income Tax Credit?

Qualifying individuals for the EITC include:

Workers with earned income below IRS limits
Those filing jointly, head of household, or single
Workers with valid Social Security numbers
People aged 25–64 (if claiming without children)
Taxpayers who do not exceed investment income limits
Parents or guardians with qualifying children who meet relationship, age, and residency requirements

Survei denyut nadi karyawan:

Ini adalah survei singkat yang dapat dikirim secara berkala untuk mengetahui pendapat karyawan Anda tentang suatu masalah dengan cepat. Survei ini terdiri dari lebih sedikit pertanyaan (tidak lebih dari 10) untuk mendapatkan informasi dengan cepat. Survei ini dapat diberikan secara berkala (bulanan/mingguan/triwulanan).

Pertemuan empat mata:

Mengadakan pertemuan berkala selama satu jam untuk mengobrol secara informal dengan setiap anggota tim adalah cara terbaik untuk mengetahui apa yang sebenarnya terjadi dengan mereka. Karena ini adalah percakapan yang aman dan pribadi, ini membantu Anda mendapatkan detail yang lebih baik tentang suatu masalah.

eNPS:

eNPS (skor Net Promoter karyawan) adalah salah satu cara yang paling sederhana namun efektif untuk menilai pendapat karyawan tentang perusahaan Anda. Ini mencakup satu pertanyaan menarik yang mengukur loyalitas. Contoh pertanyaan eNPS antara lain: Seberapa besar kemungkinan Anda akan merekomendasikan perusahaan kami kepada orang lain? Karyawan menjawab survei eNPS dengan skala 1-10, di mana 10 menunjukkan bahwa mereka 'sangat mungkin' merekomendasikan perusahaan dan 1 menunjukkan bahwa mereka 'sangat tidak mungkin' merekomendasikannya.

Berdasarkan jawaban yang diberikan, karyawan dapat ditempatkan dalam tiga kategori yang berbeda:

Promotor
Karyawan yang memberikan tanggapan positif atau setuju.
Pengkritik
Karyawan yang bereaksi negatif atau tidak setuju.
Pasif
Karyawan yang bersikap netral dalam memberikan tanggapan.

How to calculate Earned Income Tax Credit?

Calculating the EITC involves:

Determining your earned income (wages, tips, self-employment income)
Identifying your filing status
Counting your qualifying children
Using the IRS EITC tables or online calculators to find your exact credit
Applying any phase-out rules if your income exceeds certain thresholds

Tax software and the IRS EITC Assistant can guide you step by step.

What are the eligibility criteria for Earned Income Tax Credit (EITC?

To qualify for the EITC, taxpayers must meet several criteria:

Earned income: Must come from employment or self-employment.
Filing status: Must file as single, married filing jointly, head of household, or qualifying widow(er).
Age requirements: Must meet minimum and (for childless filers) maximum age limits.
Qualifying dependents: Must meet IRS rules regarding age, relationship, and residency.
Income limits: Must fall within income thresholds based on family size
Valid social security number: Required for both taxpayer and dependents