What tax credit is available for low- to moderate-income workers?

The Earned Income Tax Credit (EITC) is specifically designed to assist low- to moderate-income workers by reducing the amount of tax owed and potentially increasing the tax refund. This credit is aimed primarily at individuals and families who earn a modest income, making it a crucial source of financial support.

The EITC is based on a range of factors including income level, marital status, and number of qualifying children. It incentivizes work and helps to alleviate poverty by providing greater financial stability to its recipients. The credit amount varies depending on these factors, which ensures that it reaches those who need it most.

Other credits mentioned, such as the Child Tax Credit, Lifetime Learning Credit, and American Opportunity Credit, serve different demographic groups or purposes. For example, the Child Tax Credit primarily benefits families with children, while the Lifetime Learning Credit and American Opportunity Credit focus on educational expenses. In contrast, the EITC directly relates to earned income, making it the most fitting choice for low- to moderate-income workers seeking tax relief.