🧾 The deets…clean and quick: WHAT is the Earned Income Credit (EITC)?
EITC is available to low-to-moderate income individuals and families. According to the Tax Foundation, this is a refundable tax credit, meaning it can offset the amount owed for current taxes and even trigger an additional refund1. It is based on the taxpayer’s income and number of children. Additionally, 28 states, Washington, DC and New York City have their own EITC available as a percentage of the federal credit2. Those additional percentage amounts range from 5 to 70%.
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The IRS has a calculator app called the EITC Assistant to help taxpayers determine whether they are eligible. Annual tax filing documents (Forms W-2, 1099) and other financial papers showing expenses or changes to your income (e.g., new full-time or part-time jobs) when using this tool.
People seeking to claim the EITC and/or Additional Child Tax Credit should file their tax return as soon as possible. An expected refund date of March 2, 2026, is available if taxpayers3:
Choose direct deposit.
Submit a complete and accurate return.
Have no issues with their return requiring an additional IRS review.
According to the IRS, the average EITC refund4 last year was $2,916. There is a special website called Where’s My Refund? that will provide early filers at personalized refund date. This is a service available to all, but as early as 24 hours after e-filing your 2025 tax return. Use the active links above if you want more of the finer tax filing details. Or better yet, check out the first link of the next paragraph.
🧾 A brief look back…for a Tax Clarity update
Here are a few updates from the Internal Revenue Service (IRS) on matters covered in the Tax Clarity Newsletter earlier this month:
Filing season officially opened for 2025 calendar year returns on this past Monday.
Electronic filing methods and use of direct deposit are highly recommended for speedier access to tax refunds. The January 9th edition of the Tax Clarity Newsletter focused on more granular details about relevant tax forms and income sources that must be reported in your return.
On Tuesday, the IRS issued Fact Sheet 2026-02 to provide frequently asked questions and responses about process changes about payments sent out by the federal government to you, and payments you make to the federal government.
There’s the scoop, everyone! Thanks for taking time to check out this exclusive subscriber edition of the Tax Clarity Newsletter on beehiiv.
Thank you so much!
References (4)
1 Earned Income Tax Credit, Tax Foundation, accessed January 28, 2026.
2 States and local governments with Earned Income Tax Credit, accessed January 28, 2026.
3 IR-2026-11, IRS joins national partners to launch EITC Awareness Day, January 23, 2026, last accessed January 28, 2026.
4 Ibid.
DISCLAIMER: The information in this newsletter is derived from public information, provided for education purposes. It is not provided as a financial advisory service and should not be relied upon as such. For advice on a specific tax matter, please consult a tax professional.