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Earned Income Credit (EIC)

Low income taxpayers, usually with children, may qualify for a refundable credit, or Earned Income Credit, that allows them to receive a refund despite having little or no income tax withheld. For two or more children who qualify, their caregivers may receive up to $4,716. Grandparents, aunts, uncles, and siblings are able to claim a qualifying child if they shared residence with the child for more than six months of the tax year, although priority is given to the child's actual parents. Foster children who have been officially placed by an agency or court may also qualify. For individuals and couples without children, the EIC that they receive is, at most, a mere $428.