EARNED INCOME TAX CREDIT (INCOME) SR 94-04 Dated 04/94 (FAM-A)

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.

Count lump sum EITC as a resource in the second month after receipt. See Chapter 400, Earned Income Tax Credit .