One in 5 people ignore a valuable tax credit that's potentially worth thousands. How to boost your tax refund in 2026

As CNBC reports, roughly one in five eligible taxpayers fail to claim the earned income tax credit (EITC). This credit can provide up to $8,046 to families with three or more children for the 2025 tax year, yet millions of eligible filers still miss it each year because of complex eligibility rules (1).

Approximately 23.5 million taxpayers collectively received about $68.5 billion from the EITC in 2024, with the average credit amount totalling $2,916, according to IRS data cited by CNBC. Meanwhile, many Americans that qualify for this boost in their tax refund don’t end up claiming it.

Related: 7 ways to grow your tax refund

The earned income tax credit explained

The EITC supports low- and moderate-income workers, with eligibility determined by filing status, income and the number of qualifying children. The credit is also fully refundable, meaning taxpayers can receive the full amount even if they owe no taxes (2).

However, income limits vary. For the 2025 tax year, single filers without children must earn $19,104 or less to qualify, while single filers earning up to $61,555 or less, with three or more qualifying children, can also receive the credit. Married couples with three or more qualifying children that file their taxes together can earn up to $68,675 and still receive the credit (1).

The credit increases as earnings rise, to a certain point, before gradually phasing out at higher incomes, according to the Bipartisan Policy Center (3). And because it’s refundable, eligible households can still receive the credit as a refund even if their tax bill drops to zero.

While millions of Americans miss out on claiming this credit, the EITC is just one of several tax credits that many overlook.

Other valuable tax credits you may be missing

Beyond the EITC, there are several other federal tax credits that could add thousands of dollars to your refund.

One of the largest is the Child Tax Credit. For the 2025 tax year, families may receive up to $2,200 for each qualifying child, with up to $1,700 of the credit refundable even if the taxpayer owes little or no tax (4).

To qualify, the child generally must be under 17, live with the taxpayer for more than half the year and be claimed as a dependent on your tax return. Income limits also apply, with the credit beginning to phase out at $200,000 for single filers and $400,000 for married couples filing jointly.

Families with adopted children may also qualify for the Adoption Tax Credit (5). For the 2025 tax year, the credit can reach a maximum of $17,280 per child, with up to $5,000 now refundable under recent legislation.

Meanwhile, households paying for college expenses could qualify for the American Opportunity Tax Credit, which offers up to $2,500 per eligible student during the first four years of higher education. Taxpayers can receive up to $1,000 of the credit as a refund, even if they owe no tax (6).