The federal Earned Income Tax Credit is designed for low to moderate-income wage earners and is fully refundable, meaning even those who do not earn enough money to have taxes withheld are eligible. The Internal Revenue Service is reminding tax filers about a key credit worth up to $7,830.

Nearly 1 in 5 eligible taxpayers miss the earned income tax credit, which was worth an average of $2,743 in 2023, according to the IRS.

The EITC is “one of the federal government’s largest refundable tax credits for low- to moderate-income families,’ the release explains. The IRS estimates that about 23 million eligible workers and families received about $57 billion in EITC nationwide when filing for 2023.

In the United States, low-income households often rely on social programs and tax refunds to balance their budgets. One significant financial support is the Child Tax Credit (CTC), which helps reduce tax bills dollar for dollar.

The IRS has outlined essential dates and guidelines to ensure you receive your funds without unnecessary delays.

Tax season is now in full swing and the government agency has several helpful reminders for people looking to file.

The 2025 tax season has begun, with the IRS accepting returns. Refunds may be delayed for those claiming certain credits. The IRS faces a hiring freeze and a commissioner resignation.