EARNED INCOME TAX CREDIT (AAM)

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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 either as a recurring advanced payment, which the employer adds to the individual’s regular paycheck or as a lump sum payment at the end of the tax year.

Treatment: Excluded Income

The advanced EITC is included in the individual’s wages. Manually subtract the advanced EITC from the total wages.

Lump sum EITC is excluded as a resource for 12 months after receipt. See EARNED INCOME TAX CREDIT in Part 413, LESS COMMON TYPES OF RESOURCES.

References: 26 USC 6409