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Major tax benefit available to millions of low – and moderate – income workers


The Internal Revenue Service and partners nationwide on Jan. 27 kicked off their Earned Income Tax Credit Awareness Day outreach campaign to help millions of Americans who earned $59,187 or less last year take advantage of the Earned Income Tax Credit (EITC).

“This is an extremely important tax credit that helps millions of hard-working people every year,” said IRS Acting Commissioner Doug O’Donnell. “But each year, many people miss out on the credit because they don’t know about it or don’t realize they’re eligible. In particular, people who have experienced a major life change in the past year – in their job, marital status, a new child or other factors – may qualify for the first time. The IRS urges people to carefully to review this important credit; we don’t want people to miss out.”

In 2022, 31 million eligible workers and families across the country received about $64 billion in Earned Income Tax Credits, with an average amount of more than $2,000.

The IRS administers the EITC, which Congress originally approved in 1975. It was developed in part to offset the burden of Social Security taxes and provide an incentive to work.

The IRS and partners urge people to check to see if they qualify for this credit. They also encourage people who do not normally file a tax return to review whether they qualify for EITC and other valuable credits,

The EITC is a tax credit for certain people who work and have low to moderate income. A tax credit usually reduces tax owed and may also result in a refund. Even though millions of people get the EITC, the IRS estimates that about 20% of EITC eligible taxpayers do not claim it.

Workers at risk for overlooking the EITC include those: • Living in non-traditional homes, such as a grandparent raising a grandchild • Whose earnings declined or whose marital or parental status changed • Without children • With limited English skills • Who are veterans • Living in rural areas • Who are Native Americans • With earnings below the filing requirement

The IRS also reminds taxpayers that the quickest way to get a tax refund is by filing an accurate tax return electronically and choosing direct deposit for their refund. Tax software, tax professionals and other free options can help people see if they qualify for the EITC.

Who can get the EITC?

To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return. There’s no need to guess about EITC eligibility; find out with the EITC Assistant, at www.irs.gov/creditsdeductions/individuals/earned-income-tax-credit/use-the-eitc-assistant.