The Earned Income Tax Credit (EITC) was designed to support working families and individuals with low to moderate income, by reducing their tax burden or even issuing a refund. Yet, despite its financial importance, a substantial portion of those who qualify are not taking advantage of the benefit.
As tax season begins, the Internal Revenue Service is once again emphasizing the EITC’s potential, aiming to raise awareness through national and local outreach campaigns. The agency is encouraging taxpayers to check if they qualify, especially those who may not usually file returns due to low earnings.
Nearly One in Five Eligible Taxpayers Don’t Claim the Credit
According to the Internal Revenue Service, roughly one in five taxpayers who qualify for the Earned Income Tax Credit fail to claim it, resulting in millions of dollars left unclaimed each year. In 2024 alone, around 23.5 million workers and families received approximately $68.5 billion in EITC payments nationwide. The average credit amount reached nearly $2,916 per household.
The EITC is a refundable tax credit, which means that eligible individuals may receive a refund even if they owe no income tax. This refund can help cover key household expenses such as rent, food, childcare, or transportation. According to the IRS, the credit was established to “reward hard work” and ease financial pressures on families and individuals earning modest incomes.
Despite its benefits, the EITC remains underutilized, largely due to confusion around eligibility requirements. As noted by the IRS’s Taxpayer Advocate Service, many workers do not realize they qualify, often misunderstanding income thresholds, filing statuses, or the definition of a “qualifying child.”
“Each year, millions of working taxpayers miss out on valuable tax credits Congress created to support work, offset payroll taxes, reduce poverty, and strengthen families,” the Advocate Service said, explaining that the problem lies more with the complexity of the rules than with taxpayer oversight.
IRS Launches Outreach Efforts to Increase Awareness
In response, the IRS is increasing its efforts to promote the EITC and help eligible individuals claim the benefit. A central part of this campaign is EITC Awareness Day, a nationwide initiative involving local governments, schools, community organizations, and employers. According to the IRS, these partners will be holding events and offering resources to guide people through the process of checking their eligibility and filing accurately.
To support these efforts, the agency is also urging taxpayers to use its online EITC Assistant, as well as a comparison tool for child-related tax benefits. These resources are designed to help individuals determine whether they qualify before filing.
The IRS emphasizes that the fastest way to receive an EITC refund is to e-file a complete and accurate return and select direct deposit. For those who do so early, refunds are expected to appear in bank accounts or debit cards by March 2, 2026, with projected deposit dates viewable on the IRS’s “Where’s My Refund?” tool by February 21.
The Taxpayer Advocate Service reiterated that while tax credit rules are often complex, the benefits are significant enough to warrant careful checking. “Awareness is limited, and access to reliable help varies,” the service said, noting the ongoing challenge of reaching those most in need of the support.
