Low-income taxpayers missing out on thousands in tax credits

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Many low-income taxpayers don't know about thousands of dollars in refunds they can get in the earned income tax credit. (KABC)

With tax-filing season in full swing, many taxpayers don't realize they may be missing out on thousands of dollars in potential refunds.

Millions of low-to-moderate-income Americans qualify for the earned income tax credit, but about one in five eligible households fail to claim it, according to Consumer Reports money editor Tobie Stanger.

"If you're a lower or moderate-income worker, this can give you back some or all of the money you've paid in taxes," Stanger said. "You might even get more. This can really impact your tax refund."

The amount of the credit you can collect depends on your income, marital status and number of children.

It can range from about $500 for a single person without children who makes $15,000 a year, up to more than $6,000 back for a married couple with three kids and $50,000 in income.

The Internal Revenue Service offers more information on its website about the EITC.
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