Millions of Americans are potentially missing out on a valuable tax credit aimed at helping moderate to low-income earners.

The Earned Income Tax Credit is meant for those who earn less than $59,187 a year. In 2022, 31 million eligible workers and families across the country received about $64 billion in EITC, with an average amount of more than $2,000.

“Each year, many people miss out on the credit because they don’t know about it or don’t realize they’re eligible,” said IRS Acting Commissioner Doug O’Donnell. “In particular, people who have experienced a major life change in the past year – in their job, marital status, a new child or other factors – may qualify for the first time. The IRS urges people to carefully to review this important credit; we don’t want people to miss out.”

In general, the IRS estimates about 20% of taxpayers eligible for EITC do not claim the credit. According to the IRS, those often includes those living in non-traditional homes, such as a grandparent raising a grandchild, those without children, veterans, or those whose earnings dropped or whose marital or parental status changed during the year.

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Who qualifies for EITC?

To qualify for EITC, people must meet certain requirements and file a tax return, even if they do not earn enough money to be required to file.

Workers with qualifying children may be eligible for EITC if their adjusted gross income, or AGI, was less than $53,057 in 2022 or $59,187 for married filing jointly. These individuals can receive a maximum of $6,935 in EITC, up from $6,728 in 2021.

The maximum EITC for taxpayers with no dependents is $560, available to filers with an AGI below $16,480 in 2022 or $22,610 for married filing jointly and it can be claimed by eligible workers between the ages of 25 and 64. Married but separated spouses who do not file a joint return may qualify to claim EITC if they meet certain requirements.

Specific requirements include:

• $53,057 ($59,187 married filing jointly) with three or more qualifying children who have valid Social Security numbers
• $49,399 ($55,529 married filing jointly) with two qualifying children who have valid SSNs.
• $43,492 ($49,622 married filing jointly) with one qualifying child who have valid SSNs.
• $16,480 ($22,610 married filing jointly) with no qualifying children who have valid SSNs.
• Investment income must be $10,300 or less.

You can go here to see more on qualifying and how to apply.