HomeFinance NewsPersonal financeMillions of Taxpayers Missing Out on Free Money: IRS Reveals Shocking Statistic

Millions of Taxpayers Missing Out on Free Money: IRS Reveals Shocking Statistic


Nearly 1 in 5 eligible taxpayers don’t claim this ‘valuable credit,’ IRS says


In 2022, about 23 million tax filers received $57 billion from the Earned income Tax Credit (EITC), a tax break for low- to middle-class workers.

However, nearly 1 in 5 (one-fifth) of the taxpayers who qualify for the credit don’t claim it and for this year, it is estimated that the EITC could be worth up to $7,430 for families with three or more children.

The tax credit is refundable, meaning taxpayers can receive a payment even if they don’t owe any taxes.

Filing for the credit is not easy as there are numerous conditions to meet.

However, resources like Free File, IRS tax prep programs, or professional tax help can be used to claim the EITC.

The IRS encourages taxpayers to use the EITC as it not only provides financial support to those who qualify but also makes the tax system more fair.

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    “In 2022, roughly 23 million filers received $57 billion from the earned income tax credit, a tax break for low- to moderate-income workers.”

    “For tax year 2023, the EITC is worth up to $7,430 for a family with three or more children, up from $6,935 in 2022, according to the IRS.”


    “Millions of eligible taxpayers fail to claim the EITC, while other taxpayers claim amounts for which they are not eligible, leading to a high improper payments rate,””

    “While higher earners are more likely to face an audit, EITC claimants see audits at a 5.5 times higher rate than the rest of U.S. filers, partially due to improper payments, according to a December report from the Bipartisan Policy Center.”

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