To help increase familiarity with the Earned Income Tax Credit (EITC), the Office of the Comptroller of the Currency is joining other agencies in promoting January 31 as EITC Awareness Day. This year marks the 50th anniversary of the EITC and its positive impact on America’s working families.
The EITC is a refundable federal income tax credit for low- to moderate-income households. The EITC can reduce the amount of taxes owed on a worker’s earned income and, in some cases, increase the worker’s refund. Millions of workers may be eligible for EITC for the first time based on changes to their financial situation or their marital or parental status. Families with children may receive a refund of up to $7,830.
Banks can play an important role by informing customers about EITC and reminding them to review qualifications to determine eligibility, including:
- having an earned income under $66,819 in tax year 2024, depending on marital or parental status.
- having investment income below $11,600 in the tax year 2024.
- having a valid Social Security number by the due date of the 2024 return.
- being a U.S. citizen or a resident alien during the entire 2024 tax year.
In addition to promoting EITC awareness, the OCC encourages banks and federal savings associations to:
- share information about the EITC with their customers and stakeholders using social media or customer email and mailing lists.
- provide and promote low-cost bank products and services that enable tax refund recipients to deposit their income tax refunds directly into their accounts.
- inform customers about ways to use tax refunds to pay down debt and build savings.
- sponsor IRS Volunteer Income Tax Assistance programs in branches and support employees who volunteer as tax preparers in low- to moderate-income communities.
OCC Community Affairs Officers can provide national banks and federal savings associations with information about the EITC and other initiatives. The OCC Fact Sheet on Leveraging Earned Income Tax Credits to Reach New Bank Customers is another resource available to banks and savings associations.
Related Links
- IRS EITC Central
- OCC Community Affairs Fact Sheet, “Leveraging Earned Income Tax Credits to Reach New Bank Customers”
- OCC Community Affairs Officer Contacts