The Earned Income Tax Credit (EITC) is a federal tax benefit for low- and moderate-income workers that helps offset their tax burden and increase the returns to work. In 2005, the EITC helped lift 5 million people out of poverty, including 2.6 million children—in fact, the EITC lifts more children out of poverty than any other federal program. For some workers, the EITC can represent a 40 percent pay increase.