50th anniversary of the Earned Income Tax Credit

Posted on January 31, 2025

The Tax Reduction Act of 1975 introduced EITC as a modest tax break to provide financial help to economically challenged families and encourage work. Claiming the credit can reduce the tax owed or may also give a higher refund. Over the years, EITC has matured into one of the federal government’s largest antipoverty programs through a series of legislative reforms. Over its history, EITC has a significant impact in the lives of eligible taxpayers claiming the credit. Many taxpayers use their EITC refund to meet their basic needs. In 2025, EITC will reach a major conjuncture. EITC and the CTC has reduced poverty for working families for many years. Even more so, EITC combined with the CTC/ACTC/ODC is a financial heave for working class people and the economy. January 2025, will mark the 19th anniversary of EITC Awareness Day. A day established to promote the advantages of the Earned Income Tax Credit across the 50 states and Puerto Rico.