The Internal Revenue Service (IRS) has issued a reminder that millions of Americans are eligible for a tax credit that last year averaged over $2,000 but 20 percent of those entitled to the money didn’t claim it.
“This is an extremely important tax credit that helps millions of hard-working people every year,” IRS Acting Commissioner Doug O’Donnell said in a Jan. 27 statement. “But each year, many people miss out on the credit because they don’t know about it or don’t realize they’re eligible.”
At issue is the Earned Income Tax Credit (EITC), which Congress first approved in 1975 in part to offset the burden of Social Security taxes and provide an employment incentive.
The tax credit is administered by the IRS, which said that in 2022, some 31 million eligible Americans received around $64 billion in EITC payments. The tax credit amounted to over $2,000 on average.
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