Nearly 1 in 5 eligible filers miss this 'valuable' tax credit, IRS says — how it can boost refunds

The earned income tax credit, or EITC, is a tax break for low- to moderate-income workers, which increases based on family size.

It’s a fully refundable credit, which means certain filers can receive the full amount, even with zero taxes owed. For tax year 2025, the maximum credit is worth up to $8,046 for filers with three or more qualifying children.

However, about 1 in 5 eligible taxpayers don’t claim this “valuable” credit, the IRS said in a January news release.

For 2024 returns, roughly 23.5 million filers collectively received about $68.5 billion from the EITC, and the average amount was $2,916, according to the IRS.

EITC “eligibility requirements are complex,” national taxpayer advocate Erin Collins wrote in her 2026 legislative recommendations to Congress.