IRS Tax News
Earned Income Tax Credit celebrates 50 years of helping working families
IR-2025-38, March 28, 2025
WASHINGTON — The Earned Income Tax Credit (EITC) has played a crucial role in helping millions of low-to-moderate income workers out of poverty. Saturday, March 29, 2025, marks the 50th anniversary of this important credit.
A component of the Tax Reduction Act, EITC was signed into law by President Gerald Ford on March 29, 1975. What began as a modest means to provide financial help to working families has evolved through a series of legislative changes into one of the federal government’s largest anti-poverty programs.
Over the past 50 years, the EITC has had a significant impact in the lives of eligible taxpayers claiming the credit. As of Dec. 2024, approximately 23 million workers and families received about $64 billion from EITC.
In 1975, the maximum credit amount for EITC was $400. For tax year 2024, the EITC can be up to $7,830. Today, the EITC continues to provide financial assistance to low-to-moderate income working families and individuals, with or without children, by helping them cover essentials, save for the future and build financial stability.
Taxpayers can use the EITC Assistant to determine their eligibility. Those that are eligible can learn how to claim the credit on IRS.gov.