What to know about the Earned Income Tax Credit when you’re filing your 2025 taxes
How to claim it, how much money you could get, and more
Every dollar counts when the price of essentials is getting more expensive. You’re likely spending more on groceries, utilities, and child care than you did a few years ago. If the government owes you money, then you deserve to get the tax return you’ve worked for.
One way people can get money back from the government is the Earned Income Tax Credit (EITC). The EITC is a refund from the federal government for working people. It is one of the largest programs for people and families to build their financial cushions in the United States. It is for single people and people with kids, and if you’re eligible, it’s money that belongs to you.
But tens of thousands of people in Connecticut qualify for the EITC and don’t know it.
Depending on your income and if you have dependents, you could be owed up to about $8,000. However, you can’t get it unless you claim it.
We’ve been talking to thousands of hardworking people around the state about the EITC. Here are some of the most common questions we’ve heard:
Do I qualify?
Qualifying depends on a few things, like your income and your age. You must have an income of at least $1.
How much money will I get back?
It depends on your income and whether you have children. A person with three or more dependents could receive about $8,000 this year from the federal and state EITC. A single person with no dependents could receive about $649, according to the IRS. According to the IRS, the average Connecticut EITC filer got back $2,482 in the 2024 tax season.
Why do I have to apply?
The government unfortunately doesn’t give you the money you’re owed unless you file for it. And you have to claim it every year that you qualify to avoid missing out. “Why” is a good question for the IRS.
How do I apply?
You can apply for your EITC online or in person. If you want to apply online, we’ve partnered with FreeTaxUSA, an IRS-approved service, so you can file for free online and claim what you’re owed. If you are looking to apply in person, you can look up your local VITA site, to find free, non-profit, IRS-approved help.
Do I have to have a bank account?
Starting this year, the IRS will no longer issue paper checks for tax refunds. This means you will need to have an electronic way, like a banking account for direct deposit, to get your refund. The IRS has said people can also receive their refund on a prepaid debit card or digital wallet, and that it may make some exceptions to the new rule, but it is good to be prepared.
Do I have to have children?
No, you do not need to have children to qualify for the EITC. Although, you could get more money back if you have children. The EITC is separate from the Child Tax Credit.
What types of income count?
Money you get from working for a business, owning your own business, earning tips, doing freelance work, performing gig work, and more count.
Do you have to pay it back?
The EITC is not a loan. It is money the government owes you.
What if I’ve already filed my returns? Can I still claim it?
You can check to see if you’ve claimed your EITC by looking at Form 1040 (the first page of your return). If you’ve claimed it, then the amount will be listed under the “payment” category on the “earned income tax credit” line.
You can amend your past returns to claim the EITC.
What happens to my benefits if I claim the EITC?
Claiming the EITC will not hurt your benefits. You won’t lose SNAP, WIC, TANF, HUSKY, CHIP, or Medicaid.
When will I get the money?
It depends. Your refund will likely show up in your bank account a little later than usual, because the IRS will review your claim. This is routine with all returns that claim the EITC. Having a trusted source like FreeTaxUSA file your tax return reduces the chance that you’ll be audited.
You can track your refund through the IRS’s online tool.
Do you have to be a U.S. citizen?
You can qualify for the EITC even if you’re not a U.S. citizen. You will need to be a U.S. resident and have a Social Security Number. You may also qualify if you aren’t a citizen and don’t have a Social Security Number, but your spouse is.
If you are an undocumented immigrant and have not filed taxes before, or if you previously filed your taxes using an ITIN: last year, a court filing revealed that the IRS and Department of Homeland Security signed an agreement to facilitate sharing certain information disclosed by taxpayers who file tax returns using ITINs. If you are undocumented or previously used an ITIN, you may want to consider consulting an immigration attorney before filing your taxes this year.
Note: Residents of Puerto Rico who file federal tax returns are not eligible for the EITC, even though you pay federal taxes – but people who have moved to Connecticut from Puerto Rico can be eligible. You become eligible once you’re considered a “bona fide” Connecticut resident. We have a blog explaining more about tax changes you’ll experience moving from Puerto Rico to Connecticut.
Did politicians get rid of it?
No. There are two versions of the EITC – a federal one, and a Connecticut one. Both remain in place.
How do I know it’s not a scam?
The federal EITC has been around since 1975. Connecticut approved its own version in 2011. It’s a proven program that has helped working class people receive the money that they’re owed.
But it is good to beware of scammers impersonating the IRS to steal your personal or financial information. They can also try and charge you large fees in exchange for a fake refund. The IRS has more information on common tax scams and how to stay safe.
You can avoid scammers by filing for free at safe Volunteer Income Tax Assistance (VITA) sites or with The Connecticut Project partner FreeTaxUSA.
