Lesson 1 of 3 · 2 minute read
Why filing taxes can put money in your pocket
Even with a low income, filing a tax return can get you money back.
Many people think taxes only mean paying money. But for a lot of working people, filing a tax return means getting money back.
Getting back tax taken out of your pay
If you have a job, your employer probably took federal income tax out of each paycheck. That’s called WithholdingTax your employer takes out of each paycheck and sends to the government for you.More in the glossary. If more was taken out than you owe, you get the extra back as a Tax refundMoney the government pays back to you after you file, when more tax was taken out of your pay than you owed, or you get refundable credits.More in the glossary. But only if you file.
Tax credits that pay you
Some tax credits are “refundable.” That means they can pay you money even if you owe no tax at all.
- The Earned Income Tax Credit (EITC)A tax credit for people who work and have low to moderate incomes. It can pay you money even if you owe no tax.More in the glossary (EITC) is for people who work and have low to moderate incomes. For 2025 tax returns, it was worth up to $8,046 for families with three or more children.
- The Child Tax CreditA tax credit for families with children under 17. Part of it can come back as a refund, even if you owe no tax.More in the glossary is worth up to $2,200 per child under 17, and up to $1,700 per child can come back as a refund.
Every year, many people who qualify for these credits don’t claim them, often because they didn’t file.
Missed a year?
You can usually still file a past year’s return and claim your refund, including tax credits, for up to 3 years.
Filing doesn’t have to cost anything
IRS-certified volunteers can prepare your return for free, and there’s free software, too. See the free filing finder to choose.
Filing taxes can put money in your pocket, even with a low income.
Your job may take tax out of each paycheck. If too much was taken, you get it back as a Tax refundMoney the government pays back to you after you file, when more tax was taken out of your pay than you owed, or you get refundable credits.More in the glossary. But only if you file.
Some tax credits can pay you, even if you owe no tax. The Earned Income Tax Credit (EITC)A tax credit for people who work and have low to moderate incomes. It can pay you money even if you owe no tax.More in the glossary is for workers with low to moderate incomes. The Child Tax CreditA tax credit for families with children under 17. Part of it can come back as a refund, even if you owe no tax.More in the glossary is for kids under 17.
Many people who qualify for these credits don't get them, often because they didn't file. Free tax volunteers can help you file.
Missed a year? You can usually still file and claim your refund for up to 3 years back.