Are you missing out? 1 in 5 taxpayers don’t claim this credit — check your eligibility

Many people who earned money this year might be missing a tax benefit without realizing it. This benefit is called the Earned Income Tax Credit (EITC). The Internal Revenue Service (IRS) says about 1 in 5 taxpayers who qualify do not claim this credit, meaning millions of people leave money unclaimed every year. During the last tax filing season, around 24 million tax returns claimed the EITC, showing that many families depend on it to reduce their taxes.

The average taxpayer received about $2,894 from this credit in that tax year. In some cases, the credit can be more than $8,000, depending on a person’s income and family size, according to rules explained by the IRS, as reported by Investopedia. The Earned Income Tax Credit (EITC) helps low- and middle-income workers and families pay less tax. This credit is also refundable, which means people can still get money back as a refund even if they do not owe any taxes.

Why this tax credit matters

Tax credits like the EITC are important because many Americans depend on refunds to manage their finances, especially if they built up debt during the year. Some people may use their tax refund to pay off debts they took on during 2025, which makes claiming every possible credit important. Eligibility for the EITC depends on three main things: income level, tax filing status, and how many qualifying children you have.


The credit amount becomes smaller as income increases, meaning higher earners within the eligibility range receive a smaller credit. The IRS provides an online calculator to estimate the credit amount, helping taxpayers check how much they may qualify for. For the 2025 tax year, people with no children can qualify if their income is up to $19,104, or $26,214 for married couples filing jointly, according to IRS eligibility limits, cited by Investopedia.

How much credit you can get

In that case, the maximum credit is about $649. If a taxpayer has one qualifying child, they can earn up to $50,434, or $57,554 if filing jointly. With one child, the maximum credit can reach $4,328. Families with two children can earn up to $57,310, or $64,430 if married filing jointly,. For two children, the maximum credit can be $7,152. Families with three or more children can earn up to $61,555, or $68,675 if filing jointly.

In that group, the maximum credit can reach $8,046. To qualify for the credit, taxpayers must have earned income during the 2025 tax year. Earned income means wages or income from working. However, investment interest, alimony, child support, and government benefits like unemployment do not count as earned income. Taxpayers cannot have more than $11,950 in investment income during the year to qualify for the credit.

Age, child rules and basic EITC eligibility requirements

Some taxpayers must also be between ages 25 and 65 to qualify if they do not have a qualifying child. But this age rule does not apply if the taxpayer has a qualifying child and meets income limits. A qualifying child can be a child, stepchild, foster child, grandchild, sibling, or step-sibling. The child must be under age 19 at the end of 2025. If the child is a full-time student, the age limit increases to under 24. A child who is permanently and totally disabled can qualify at any age, as noted by Investopedia.

The child cannot be married and file a joint tax return. The child must have lived with the taxpayer in the United States for more than half of 2025. The same child cannot be used by another taxpayer to claim the EITC. Taxpayers claiming the credit must have a valid Social Security number. They must also have been a U.S. citizen or resident for the entire 2025 tax year.

Taxpayers cannot claim the credit if they received foreign earned income in 2025. They also cannot be claimed as a dependent on another person’s tax return. Because millions of eligible taxpayers miss this credit every year, checking eligibility could mean getting hundreds or even thousands of dollars back, according to IRS data on EITC claims.

FAQs

Q1. What is the Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit is a tax benefit that helps low- and moderate-income workers reduce their taxes and sometimes get extra money as a refund.

Q2. How do I know if I qualify for the EITC?

You may qualify if your income is within IRS limits, you earned money from working, and you meet rules about filing status, children, and residency.