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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.
That’s why, for the 20th year in a row, the Taxpayer Advocate Service (TAS) and the IRS are participating in Earned Income Tax Credit (EITC) Awareness Day on January 23. The day is intended to increase understanding of refundable credits and help ensure eligible taxpayers are aware of their ability to claim benefits provided under current law.
EITC Awareness Day is a nationwide effort to help eligible workers understand how to claim the EITC and avoid common filing mistakes. This year’s outreach also emphasizes eligibility for other important credits, including the Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), Credit for Other Dependents (ODC), and the American Opportunity Tax Credit (AOTC).
Congress enacted the EITC to encourage and reward work and to supplement earnings for low – and moderate-income workers. The EITC, combined with the CTC/ACTC and ODC, represent some of the most significant benefits available to low- and moderate-income working taxpayers. These credits can reduce the amount of tax owed – and in many cases, result in a refund.
Despite their importance, the IRS has estimated that about one in five eligible taxpayers do not claim the EITC. That means billions of dollars in congressionally authorized benefits go unclaimed each year by workers who earned the credit but didn’t receive it.
The impact of the EITC is substantial. In 2025, approximately 24 million workers and families received about $70 billion in EITC and the average EITC nationwide was $2,894. When claimed as intended, these credits can help households manage expenses such as housing, food, childcare, transportation, utilities, and education. For many households, these refunds represent the largest single financial resource they receive all year.
Although designed to support working taxpayers, the EITC’s statutory requirements can be difficult to navigate. TAS routinely hears from taxpayers who encounter challenges in the following areas:
Understanding Who Is a “Qualifying Child”
For EITC purposes, a qualifying child must meet four tests: relationship, age, residency, and filing status. Eligibility rules differ from those applicable to the CTC, which can cause confusion.
Filing Status Confusion
Married taxpayers generally must file jointly to claim the EITC. Taxpayers who are separated may qualify for Head of Household status and claim the EITC, but only if they meet strict statutory requirements.
Earned Income Limitations
Only earned income, such as wages or self-employment income, counts for EITC eligibility. Taxpayers whose income consists primarily or exclusively of unearned income, like interest or dividends, generally do not qualify.
Documentation and Accuracy Challenges
Missing or incorrect Social Security numbers, errors in child residency information, or income mismatches can delay refunds, prompt IRS correspondence or audits, or result in the denial of credits.
Given the complexity of these rules, it’s understandable that many taxpayers need help determining whether they qualify and how much they can claim. Free, reliable assistance is available and plays a critical role in closing the gap between eligibility and receipt.
IRS Digital Tools
The IRS offers the EITC Assistant and Interactive Tax Assistant, which can help determine eligibility, identify qualifying children or relatives, and estimate the amount of the credit.
Free Volunteer Tax Preparation
Eligible taxpayers can get help from trained volunteers through the Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) programs, which provide free tax return preparation for qualifying individuals. These programs are intended to help improve filing accuracy and reduce errors that can delay refunds or require post-filing intervention.
TAS encourages taxpayers to use trusted resources and to be cautious when selecting a return preparer. Inaccurate returns, regardless of preparer involvement, remain the responsibility of the taxpayer and may result in delayed refunds, audits, or other compliance actions.
TAS Resources:
IRS Resources:
As filing season continues, EITC Awareness Day serves as a reminder that refundable credits are not loopholes or special favors – they are benefits Congress intentionally created to support work and promote economic stability. When eligible taxpayers successfully claim credits for which they qualify, it can make a real difference – it supports both household financial stability, families are stronger, communities benefit, and the tax system works more fairly for everyone.
Taking the time to understand eligibility or seek free assistance could put meaningful dollars back in the pockets of workers and families who qualify.
The views expressed in this blog are solely those of the National Taxpayer Advocate. The National Taxpayer Advocate presents an independent taxpayer perspective that does not necessarily reflect the position of the IRS, the Treasury Department, or the Office of Management and Budget. NTA Blog posts are generally not updated after publication. Posts are accurate as of the original publication date.