Tax Credits You Might Be Missing
The Earned Income Tax Credit: Money Many Workers Never Claim
One of the biggest refunds working people miss — here's how it works and who qualifies.
6 min read
The Earned Income Tax Credit (EITC) is one of the most valuable tax breaks in the country. It's designed to help people who work but don't earn a lot of money. And it's refundable — meaning the IRS will send you a check for it even if you don't owe any tax.
Every year, the IRS estimates that about 1 in 5 people who qualify for the EITC never claim it. That's real money left on the table.
How much is it worth?
The exact amount depends on your income, filing status, and how many kids you have. But to give you a sense of the size:
- No kids: up to around $600
- One child: up to around $4,200
- Two children: up to around $6,900
- Three or more children: up to around $7,800
Those numbers shift a little each year, but the point stands: for a working parent, the EITC can be one of the biggest single line items on the return.
Who qualifies?
The basic rules are simple:
- You (and your spouse, if married) worked and earned income during the year.
- Your income is under the yearly limit for your family size.
- You have a valid Social Security number.
- You're a U.S. citizen or resident alien all year.
- You're not filing as Married Filing Separately (with narrow exceptions).
A quick example
Maria works part-time at a hotel and made $22,000 last year. She has two kids at home. Even though she owed only about $300 in federal income tax, the EITC could add roughly $6,000 to her refund. That's grocery money, back-to-school clothes, and a dent in her car repair bill.
Common reasons people miss it
- They didn't file a return at all because their income was low.
- Their software didn't ask the right questions.
- Their family situation changed (new baby, divorce, adult child moved back) and no one updated the return.
- They earned some income from cash work or a side gig and didn't know it still counts.
If your income was modest last year, or your household changed, the EITC is worth a careful look — even if you've never claimed it before.
When to get professional help
Consider working with an Enrolled Agent or CPA if any of these sound like you:
- You have self-employment or cash income and aren't sure how to report it.
- Your kids live with you part of the year, or another parent also claims them.
- You got an IRS letter about EITC in a past year, or your credit was reduced or denied.
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