Income Low Enough to Avoid a Tax Return? Check Your Refundable Credits

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced:

IRS: EITC participation rate by state
- https://www.irs.gov/tax-professionals/eitc-central/eitc-participation-rate-by-state
  - Related column excerpt:
    - “About one out of five people eligible for the earned income tax credit (EITC) missed out on getting a ‘check in the mail’ from the U.S. Treasury between tax years 2014 and 2022. Why? They did not claim the credit. As a longtime proponent of financial literacy education, that bothers me.”
IRS: Earned Income Tax Credit (EITC)
- https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitc
  - Related column excerpt:
    - “The EITC ‘helps low- to moderate-income workers and families get a tax break.’ And, importantly, it is a ‘refundable credit.’ (See the EITC webpage on IRS.gov).”
IRS: Tax credits for individuals: What they mean and how they can help refunds
- https://www.irs.gov/newsroom/tax-credits-for-individuals-what-they-mean-and-how-they-can-help-refunds
  - Related column excerpt:
    - “According to the IRS, if a taxpayer’s tax bill ‘is less than the amount of a refundable credit, they can get the difference back in their refund.’ It’s the reason that taxpayers who are not required to file a tax return might still want to do so, if they are eligible to claim refundable tax credits. As for nonrefundable tax credits, ‘once a taxpayer’s liability is zero, the taxpayer won’t get any leftover amount back as a refund.’”
Congress.gov: H.R.1 - An act to provide for reconciliation pursuant to title II of H. Con. Res. 14
- https://www.congress.gov/bill/119th-congress/house-bill/1/text
  - Related column excerpt:
    - “There are a number of other tax-refundable (and non-refundable) credits available, and some have adjustments this year due to Public Law 119-21, also known as the One Big Beautiful Bill Act.”
IRS: Premium Tax Credit (PTC) Overview
- https://www.irs.gov/credits-deductions/premium-tax-credit-ptc-overview
  - Related column excerpt:
    - “Premium Tax Credit, which helps ‘lower the amount eligible individuals and families pay each month for coverage under their qualified health plan purchased through a Marketplace.’ The IRS webpage ‘Premium Tax Credit (PTC) Overview’ has more details.”
IRS: Fuel Tax Credit
- https://www.irs.gov/credits-deductions/businesses/fuel-tax-credit
  - Related column excerpt:
    - “The Fuel Tax Credit relates to fuel used for specific work-related activities -- operating a business or running a farm. The IRS notes on its Fuel Tax Credit webpage that the credit ‘is not available to most taxpayers.’”
IRS: Tax credits for individuals
- https://www.irs.gov/newsroom/tax-credits-for-individuals
  - Related column excerpt:
    - “Some tax credits are partially refundable. One example: the Adoption Tax Credit (available to taxpayers who finalized an adoption in 2025 or started the process before 2025). See the IRS release ‘Tax credits for individuals’ for more details.”
IRS: Child Tax Credit
- https://www.irs.gov/credits-deductions/individuals/child-tax-credit
  - Related column excerpt:
    - “Child Tax Credit/Additional Child Tax Credit, which helps families with qualifying children get a tax break. The maximum amount for 2025 is $2,200 per qualifying child. See the IRS webpage ‘Child Tax Credit.’”
IRS: Retirement Savings Contributions Credit (Saver’s Credit)
- https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-credit-savers-credit
  - Related column excerpt:
    - “Saver’s Credit (also known as the Retirement Savings Contributions Credit), which allows you, if eligible, to take a tax credit for making eligible contributions to your IRA or employer-sponsored retirement plan. The maximum credit is $1,000 ($2,000 if married and filing jointly). See the Saver’s Credit IRS webpage.”
IRS: Interactive Tax Assistant (ITA)
- https://www.irs.gov/help/ita
  - Related column excerpt:
    - “An important tool related to the tax credits is the IRS Interactive Tax Assistant. It addresses many of the credits and will help you determine if you are eligible.”
National Taxpayer Advocate Annual Report to Congress 2025
- https://www.taxpayeradvocate.irs.gov/wp-content/uploads/2026/01/ARC_Publication-2104_2025_Web.pdf
  - Related column excerpt:
    - “As Erin Collins explained in the National Taxpayer Advocate’s 2025 Annual Report to Congress, ‘a family that is eligible but does not claim the EITC may miss out on thousands of dollars in refunds and end up paying more in taxes because they misunderstand the rules, meaning the families who need these funds the most are likely missing this tax benefit.’”