Because the earned income credit is a credit and not income, it is not taxable. Instead, the EIC helps to reduce the taxes of those of low or moderate income levels.
To take advantage of the EIC, taxpayers must meet certain criteria. Taxpayers cannot be married filing separately, they must be a U.S. citizen and meet the income eligibility requirements. Earned income must come from wages, tips and union strike benefits, although some disability benefits may also be claimed. Other eligibility requirements must be met, and taxpayers can find these and the answers to many other questions on the IRS website.