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By Amanda Greenwood
Associate News Editor
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Millions of Americans who are eligible for an Earned Income Tax Credit (EITC) payout aren’t claiming it, according to the IRS.
What Is the Earned Income Tax Credit?
The EITC, the IRS says, was created to support working American families, “rewarding them for their hard work.” It’s a tax credit that supplements earnings for low- and moderate-income workers. It is a refundable credit, meaning it can result in a refund even if no tax is owed.
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The IRS reported that in 2024, approximately 23.5 million workers and families received about $68.5 billion in EITC nationwide, and that the average EITC payment amount was around $2,916. These credits could go toward household expenses like rent or mortgage payments, food, childcare, transportation, utilities, and education.
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The IRS estimates that about one in five taxpayers, who are eligible for the EITC, don’t claim it, meaning millions of families and workers are missing out on thousands of dollars.
Why Are People Not Claiming The EITC?
According to the IRS's Taxpayer Advocate Service, although the EITC was created to support workers, the eligibility rules—especially around income limits, filing status, and who counts as a “qualifying child”—can be confusing, leaving many assuming they don’t qualify, when they do.
It reports that “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. These credits go unclaimed not because taxpayers are at fault, but because the rules are complex, awareness is limited, and access to reliable help varies.”
What the IRS Is Doing to Encourage More People To Claim EITC
The IRS has launched an annual EITC Awareness Day campaign to encourage eligible low- to moderate-income workers to claim benefits at tax filing time. The IRS and community organizations, elected officials, state and local governments, schools, employers, and other interested parties will be hosting local community events and using available resources to help taxpayers file their returns and claim the credit, if they’re eligible.
The agency is also encouraging taxpayers to use its EITC Assistant and child-related tax benefits comparison tool to check eligibility before filing.
The Taxpayer Advocate Service says that “EITC Awareness Day is a nationwide effort to help eligible workers understand how to claim the EITC and avoid common filing mistakes.”
When Will Eligible Taxpayers Receive Their ETIC?
The IRS says that the fastest way to receive any refund is to e-file an accurate return and choose the direct deposit option.
Most early EITC refunds should be available in bank accounts or on debit cards by March 2, 2026, for taxpayers using direct deposit with no return issues.
The “Where’s My Refund?” tool should display projected deposit dates for most early filers by February 21, 2026.
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