Which tax credit is intended for low-to-moderate income workers?

The Earned Income Tax Credit (EITC) is specifically designed to benefit low-to-moderate income workers, making it a targeted tax relief provision aimed at reducing poverty and incentivizing employment. The credit is based on the taxpayer's earned income and the number of qualifying children they have, which encourages those at lower income levels to maintain workforce participation.

This tax credit allows eligible taxpayers to receive a refund that may exceed the amount of tax owed, effectively providing financial assistance to those in need. The EITC not only helps with immediate financial relief but also promotes work by providing an incentive for individuals to seek employment or increase their earned income.

In contrast, the Standard Deduction is a fixed deduction that applies to all taxpayers and does not specifically target low-to-moderate income earners. The Child Tax Credit offers benefits based on the number of dependent children but is not exclusively for low-to-moderate income workers. Similarly, the Education Credit provides tax relief for qualified education expenses and does not specifically focus on income level. Thus, the EITC stands out as the tax credit most aligned with the needs and circumstances of low-to-moderate income workers.