Hope You Aren't Counting on Getting a Tax Refund This Winter

With the holidays behind them, millions of Americans are putting a new priority on the calendar: getting caught up on the heating bill. Since most states have laws prohibiting utilities from disconnecting the gas during the winter, households struggling to juggle their expenses sometimes let this one lapse. When the new year arrives, so does help, in the form of the Earned Income Tax Credit.

Families rely on the Earned Income Tax Credit (EITC) for a vital infusion of cash after the holiday season. More than 25 million low- and moderate-income tax filers claimed the EITC last year—a total of 18 percent of all tax returns. In 2018, these tax filers saw an average return of $2,488—which helps to explain why households claiming the EITC (or the refundable Child Tax Credit) are among the earliest households to file their taxes every year.