Benefits Category
Tax Credits
The Earned Income Tax Credit is one of the most effective anti-poverty tools in the US tax code — and an estimated 20% of eligible workers do not claim it each year. Even workers who owe no income taxes at all can receive EITC as a cash refund. Filing a tax return is required to claim it, which is why low-income workers should always file even with minimal income.
Tax credits directly reduce the taxes you owe, and refundable credits like the EITC and Child Tax Credit can generate a refund even when you owe nothing. Nonrefundable credits (like the Saver's Credit) reduce taxes owed to zero but do not generate a refund on their own. The IRS Free File program offers free federal filing software for households with income below $79,000, and the VITA (Volunteer Income Tax Assistance) program provides free in-person tax help.
Tips for Applying
- →File a tax return every year even if your income is very low — EITC and other refundable credits can put hundreds or thousands of dollars in your pocket.
- →Use IRS Free File (freefile.irs.gov) or find a VITA site (irs.gov/vita) if your income is below $67,000 — filing is free and maximizes your credits.
- →The Saver's Credit rewards retirement contributions — even small contributions to an IRA or 401(k) can generate a credit worth 10-50% of what you put in.
- →The Premium Tax Credit can be taken in advance as monthly reductions to your ACA marketplace premium — reconcile it on your tax return.
- →Check your state tax credits too — many states have their own Earned Income Credits, Child and Dependent Care Credits, and rent-relief credits that piggyback on federal programs.
Frequently Asked Questions
Who qualifies for the Earned Income Tax Credit?
EITC is available to workers with earned income below certain thresholds — in 2024, up to $59,899 for a single filer with three or more children, or $18,591 for a worker without children. You must have worked and earned income from wages, self-employment, or farming. Investment income above $11,600 disqualifies you. The credit is largest for families with children but also available to childless workers ages 25-64.
Can self-employed people claim the EITC?
Yes. Self-employment income counts as earned income for EITC purposes. However, you calculate it on your net profit (after business expenses), and you must still pay self-employment tax. If you received a 1099 or run your own business, you can still claim the EITC — file Schedule C with your return.
What is VITA and how do I find a free tax site?
The Volunteer Income Tax Assistance (VITA) program offers free federal and state tax preparation for households with income generally below $67,000, people with disabilities, and limited-English speakers. Trained IRS-certified volunteers prepare your return at no charge. Find a location at irs.gov/vita or by calling 211. VITA sites typically operate February through April 15.
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