By Andi Anderson
The Earned Income Tax Credit (EITC) has been supporting Iowans for 50 years by offering a financial boost to individuals and families with low to moderate income.
Created in 1975 through the Tax Reduction Act, the EITC started as a temporary program offering a $400 credit to working families with children. Over the years, it evolved into a permanent benefit, increasing in value and reach.
According to Jeannette Mukayisire, an educator with Iowa State University Extension and Outreach, the EITC helps families reduce their tax burden. This allows them to cover basic needs, pay off debts, save for emergencies, or invest in their future.
In Iowa, the IRS reports that 81% of eligible tax filers receive the EITC. However, 19% still miss out on this important benefit. To help more people access these funds, ISU Extension supports the Volunteer Income Tax Assistance (VITA) program.
VITA trains local volunteers who become IRS-certified and offer free tax filing services to eligible Iowans. These services focus on low-to-moderate-income households, older adults, people with disabilities, and limited English speakers.
In 2025, VITA volunteers helped 552 Iowans claim the EITC, with an average refund of $1,981, adding up to $1.1 million returned to families.
“EITC refunds are important because they contribute to family financial security,” said Mukayisire. “They also boost the local economy as families spend their refunds in the community.”
Programs like VITA not only help individuals but also create economic ripple effects, supporting small businesses and strengthening local development.
As tax season approaches next year, families are encouraged to remember the VITA program for safe, accurate, and free tax help.
Photo Credit: iowa-state-university
Categories: Iowa, Business