US IRS Highlights Overlooked Earned Income Tax Credit for 2025

With the 2025 tax season underway in the U.S., the Internal Revenue Service (IRS) is reminding taxpayers about the Earned Income Tax Credit (EITC). This tax benefit aims to reduce the tax burden for low- to moderate-income workers and families, and in some cases, may even increase the tax refund. The IRS notes that one in five eligible taxpayers do not claim this credit, missing out on significant financial relief. To access the EITC, taxpayers must file a tax return, even if they are not required to pay additional taxes. Eligibility criteria include having income below IRS-established thresholds and a valid Social Security number. Applicants must also be U.S. citizens or resident aliens with appropriate status. Income limits vary depending on the applicant's family situation. For example, taxpayers without children can claim up to $631, while those with three or more children can claim up to $7,830, based on reported income. The IRS cautions that EITC-associated refunds may be delayed as law prevents processing before mid-February. Income limits for the 2024 tax year vary based on marital status and the number of children. The EITC serves as a tool to alleviate financial burdens for low- to moderate-income families in the U.S. The IRS also provides an online tool called 'Where's My Refund' that allows taxpayers to check the status of their refund. The tool requires entering the Social Security Number, filing status, and exact refund amount. It will then respond with a return received (processing), refund approved (preparing to issue refund by date shown), or refund sent (send to your bank or in the mail). It could take five days for the refund to show in the bank account, and up to several weeks for the check to arrive in the mail. Most states have online portals for tracking income tax returns. Direct File is a new IRS program that allows millions of Americans with uncomplicated taxes to file returns at no cost. Piloted in a dozen states last year, Direct File expanded to 25 states in 2025: Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin and Wyoming. The IRS says 30 million taxpayers qualify to use the free service this year.