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Financial Literacy · Lesson 4 of 4

Refunds, credits, and what the tax system owes you

The EITC, CTC, and other tax credits are some of the largest anti-poverty programs in America. Most eligible people leave money on the table.

10 min read

The two credits to know

EITC (Earned Income Tax Credit) — for working low- and moderate-income earners. In 2024 the maximum was $7,830 for a family with three or more children. About 20% of eligible taxpayers don't claim it.

CTC (Child Tax Credit) — up to $2,000 per child under 17, with $1,700 refundable in 2024. Worth real cash even if you owe no tax.

Free filing — don't pay TurboTax

  • IRS Direct File (directfile.irs.gov) — free, direct from the IRS, available in 25+ states.
  • Free File Alliance — free filing through IRS partners if income is under ~$84,000.
  • VITA (Volunteer Income Tax Assistance) — free in-person filing help. Locate sites at irs.gov/vita.

What to do if you missed past years

You can file back 3 years and claim refunds. The IRS estimates roughly 1.5 million Americans miss the cutoff each year, leaving over $1 billion unclaimed.