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The Earned Income Tax Credit (EITC) is a refundable tax credit for low- to moderate-income working individuals and families. It is calculated based on earned income, filing status, and number of qualifying children. To calculate EITC, taxpayers must refer to IRS guidelines and tables. Reporting EITC involves filling out the appropriate forms on a tax return. Understanding EITC is important for CPA exam candidates and those seeking to maximize their tax refunds.

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