By Jeannette Mukayisire
AMES, Iowa – For 50 years the Earned Income Tax Credit has been providing a financial boost for U.S. taxpayers with low to moderate income. The EITC reduces their taxes, leaving them with more money to cover basic needs, pay debts, save for emergencies or invest, says Jeannette Mukayisire, a health and human sciences educator with Iowa State University Extension and Outreach.
In 1975 the Tax Reduction Act introduced EITC as a temporary program with a maximum credit of $400 for working families with children. Through legislative measures over the years, the credit was increased, various requirements were added and the provision became permanent, Mukayisire said.
According to the IRS, in Iowa 81% of tax filers who are eligible for EITC receive the credit. However, 19% of those who are eligible do not take the opportunity to claim EITC they earned.
Through the Volunteer Income Tax Assistance program, ISU Extension and Outreach educators train and support community volunteers who complete IRS certification and then provide free tax preparation to Iowans with low or moderate income.
“Our VITA volunteers help Iowans save money on tax preparation and access the EITC if they qualify,” Mukayisire said.
In 2025, ISU Extension and Outreach’s VITA volunteers helped 552 Iowans access the EITC. The average EITC refund was approximately $1,981, totaling $1.1 million.
“EITC refunds are important because they contribute to family financial security. However, the EITC also improves the local economy as families use their refunds. Every EITC dollar earned and circulated through the local economy creates a ripple effect that exceeds the size of the original refund. This strengthens communities, assists small businesses and spurs local economic development,” Mukayisire said.
VITA provides free and accurate income tax assistance to qualifying low-to-moderate-income individuals and working families, older adults, limited English speakers, and people with disabilities. Certified community volunteers prepare taxes with computer software and help with special tax credits such as the Earned Income Tax Credit, Child Tax Credit, and Credit for the Elderly or Disabled.
“As you plan ahead for filing next year’s tax return, keep VITA in mind. This program can make a difference for you, your family and your community,” Mukayisire said.
For more information, contact your ISU Extension and Outreach county office.
