The Earned Income Tax Credit is a tax deduction that is given to low income working individuals and families. This tax credit policy was enacted in 1975 during the Reagan Administration and underwent several changes in 1990, 1993, and 2001.

The Earned Income Tax Credit is a refundable federal income tax credit, which means that if the earned income credit exceeds the amount of taxes owed, it results in a tax refund for those who claim and qualify for the credit.

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