Press Releases
Rep. Sewell Introduces Resolution to Raise Awareness of the Earned Income Tax Credit
January 31, 2025
Washington, D.C. – Today, U.S. Rep. Terri Sewell (AL-07) introduced a resolution to recognize January 31st as “Earned Income Tax Credit Awareness Day.” The 2025 tax filing season, which began on January 27, marks the 50th anniversary of the Earned Income Tax Credit (EITC), which provides tax savings for low-to-moderate income workers and families.
“The Earned Income Tax Credit is a win-win for American workers and our economy as a whole,” said Rep. Sewell. “Not only does it reward hard work, but it lifts millions of families out of poverty in the process. As Americans prepare to file their taxes, we should all do our part to ensure that every eligible worker can take advantage of this critical benefit."
Since its creation in 1975, the EITC has become one of our nation’s most successful anti-poverty programs. As a member of the House Ways and Means Committee, Rep. Sewell has championed efforts to strengthen and expand it. Thanks to Rep. Sewell’s leadership, President Biden’s American Rescue Plan tripled the maximum EITC benefit for workers without children from roughly $540 to roughly $1,500 and expanded the age range of eligible workers. As a result, the EITC delivered $57 billion in tax savings to 23 million eligible workers and families in 2023 and lifted approximately 4.1 million people and 2.1 million children out of poverty.
Despite the program’s money-saving potential, roughly 20 percent of those eligible—an estimated 5 to 7 million people—fail to claim the benefit. In Alabama, nearly 21 percent of all eligible taxpayers did not claim the EITC in 2021.
Workers at risk for overlooking this important credit include those:
- Living in non-traditional homes, such as a grandparent raising a grandchild;
- Whose earnings declined or whose marital or parental status changed;
- Without children;
- With limited English skills;
- Who are Veterans;
- Living in rural areas;
- With earnings below the filing requirement; or
- Who have disabilities or are raising children with disabilities.
Rep. Sewell’s resolution calls on federal, state, and local agencies, as well as community organizations, nonprofits, employers, and other partners to help increase awareness of the EITC to ensure that all eligible workers have access to the full range of tax credit benefits available to them.
Individuals and families can use the IRS’ EITC Assistant to check their eligibility.
The resolution is cosponsored by Reps. Mike Thompson (CA-04), John Larson (CT-01), Danny Davis (IL-07), Gwen Moore (WI-04), Brendan Boyle (PA-02), Don Beyer (VA-08), Jimmy Panetta (CA-19), Steven Horsford (NV-04), and Tom Suozzi (NY-03).
Text of the resolution is available here.
###