EARNED INCOME TAX CREDIT (INCOME) (FSM)

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Payments made by the Internal Revenue Service (IRS) to certain working individuals who are raising a dependent child and meet IRS requirements.

The Earned Income Tax Credit (EITC) is available as a recurring advance payment, which the employer adds to the individual’s regular paycheck. However, the EITC is also available as a lump sum payment at the end of the tax year.

Treatment: Excluded Income

Advance EITC income is included in the individual’s wages.

Exclude lump sum EITC as a resource for 12 months from receipt.

Reference: 26 USC 6409