EITC Errors That Delay Refunds – And How To Avoid Them

The Earned Income Tax Credit (EITC) is a valuable tax credit for many workers and families with low to moderate income. But even small mistakes on an EITC claim can cause refund delays, extra IRS reviews, or even denials.

This guide from HowToGetAssistance.org explains common EITC errors, how they can slow down your refund, and practical steps you can take to avoid problems before you file. This site is an independent information resource, not a government office or application portal. For filing, status updates, or case-specific questions, you will need to use official IRS channels or speak with a qualified tax professional.

What Is the Earned Income Tax Credit (EITC)?

The EITC is a federal tax credit for people who earn income from working (wages, salaries, certain self-employment income). It is designed to supplement earnings and may:

• Reduce the amount of tax you owe, and
• Provide a refund even if you do not owe any tax.

The size of the credit usually depends on:

• Your earned income
• Your filing status (single, head of household, married filing jointly, etc.)
• How many qualifying children you claim (if any)
• Whether you meet age, residency, and other rules

Because the EITC can significantly increase a refund, the IRS takes extra steps to verify eligibility and accuracy. Errors in this section of your tax return are a common reason for refund delays.

Why EITC Errors Can Delay Your Refund

When the IRS spots a possible problem with an EITC claim, your return can:

• Be pulled for manual review
• Trigger an audit letter or request for more information
• Result in a hold on some or all of your refund

In many cases, these issues are caused by simple mistakes, such as:

• Using the wrong Social Security number
• Misunderstanding who counts as a qualifying child
• Choosing the wrong filing status
• Entering incorrect income amounts

The good news is that many delays can be prevented with careful preparation and double-checking.

The Most Common EITC Errors (And How to Avoid Them)

1. Incorrect Social Security Numbers (SSNs) or Names

To get the EITC, you, your spouse (if filing jointly), and any qualifying children usually need to have valid Social Security numbers that are:

• Issued by the Social Security Administration (SSA), and
• Valid for work

Common mistakes:

• Typo in a Social Security number
• Name not matching Social Security records (for example, after a marriage or name change)
• Claiming a child who does not have a valid SSN by the tax filing deadline (including extensions)

How to avoid this error:

• Check all SSNs carefully against Social Security cards before filing.
• Make sure names match exactly as shown on the Social Security card (including hyphens and spelling).
• If anyone’s name has changed, contact the Social Security Administration to update their record before filing if possible.
• If a child does not have an SSN yet, contact your local Social Security office to ask about the process and estimated timing.

2. Claiming a Child Who Does Not Meet EITC “Qualifying Child” Rules

Not every child in your home will count as a qualifying child for EITC purposes. The IRS has specific tests for:

• Relationship (your son, daughter, stepchild, foster child placed by an authorized agency, sibling, etc.)
• Age (typically under a certain age at the end of the tax year, with some exceptions for full-time students or people with disabilities)
• Residency (usually living with you in the U.S. for more than half the year)
• Joint return (the child generally cannot file a joint return with a spouse, unless only to claim a refund of withheld taxes)

Common mistakes:

• Claiming a child who lived with you less than half the year
• Claiming a child who actually lives with another parent or guardian
• Claiming a child who is too old under EITC rules and does not meet an exception
• Both parents (or relatives) claiming the same child on separate returns

How to avoid this error:

• Use the IRS’s qualifying child rules carefully when deciding who you can claim.
• Keep proof of residency such as school records, medical records, or official mail showing the child’s address.
• Coordinate with the child’s other parent or caregiver if there is shared custody so you both understand who is claiming the child.
• If there is a court order or written agreement, review it before filing and consult a qualified tax preparer or official IRS helpline if you are unsure.

3. Choosing the Wrong Filing Status

Your filing status can affect your EITC eligibility and the amount of your credit.

Common filing statuses include:

• Single
• Head of Household
• Married Filing Jointly
• Married Filing Separately

Common mistakes:

• Claiming Head of Household when you do not meet the rules (for example, not paying more than half the cost of keeping up a home or not having a qualifying person living with you more than half the year)
• Filing as Single when you are legally married and do not qualify as considered unmarried under IRS rules
• Filing Married Filing Separately and expecting to claim the EITC (in most cases, this filing status cannot claim EITC)

How to avoid this error:

• Review IRS filing status definitions or speak to an IRS representative or a certified tax preparer if your situation is complicated (such as separation, divorce, or shared custody).
• If you are legally married but live apart, ask whether you might qualify as head of household under “considered unmarried” rules, or if married filing jointly is required to claim the EITC.

4. Incorrect Income Reporting (Wages, Tips, and Self-Employment)

The EITC is based on earned income. Errors in reporting wages, tips, or self-employment can trigger IRS review.

Common mistakes:

• Leaving out a Form W-2 from a part-time or seasonal job
• Not reporting all self-employment income, including cash payments
• Misreporting income that should be listed as self-employment
• Confusing unemployment benefits (not earned income for EITC) with wages
• Entering wrong numbers from W-2s or 1099s

How to avoid this error:

• Gather all income documents before filing:
  • W-2 forms from all employers
  • 1099-NEC, 1099-MISC, or 1099-K for gig or contract work
  • Records of cash payments for work you performed
• Compare your documents with your final pay stubs for the year if something looks off.
• If you are self-employed, keep detailed records of income and expenses and consider using a qualified tax preparer.
• Double-check that unemployment benefits are not counted as earned income for EITC – they may be taxable but are treated differently.

5. Problems With Tiebreaker Rules (When More Than One Person Can Claim the Same Child)

Sometimes more than one person can claim the same child under the rules (for example, a parent and a grandparent, or two parents who do not file a joint return). The IRS has tiebreaker rules to decide who may claim the child for EITC purposes.

Common mistakes:

• Two different people in the same family each claim the same child
• Relatives assume the person with the higher income should claim the child without checking the rules
• Filing without discussing the decision with other caregivers

How to avoid this error:

• Before filing, discuss who will claim each child with everyone who might be eligible.
• Review the tiebreaker rules or contact the IRS helpline if you cannot agree or are unsure.
• Be clear about who will claim which credits (EITC, Child Tax Credit, etc.) to prevent overlaps.

6. Missing or Incorrect Child-Related Information

The IRS often checks child-related details carefully when EITC is claimed.

Common mistakes:

• Incorrect dates of birth
• Not indicating the relationship correctly on the tax form
• Forgetting to list a child’s months lived with you when a form asks for it
• Not updating information after family changes (new baby, adoption, custody change)

How to avoid this error:

• Confirm each child’s:
  • Full legal name
  • Date of birth
  • Social Security number
  • Relationship to you
• Check that the months in your home matches your records.
• For adopted or foster children, keep legal documents and placements from agencies or courts available in case the IRS requests proof.

7. Missing Forms, Schedules, or Documentation

Sometimes the numbers are correct, but important forms are left out.

Common mistakes:

• Not completing the EIC schedule or section of your tax return
• Leaving off forms for self-employment income (such as Schedule C or Schedule SE)
• Failing to provide requested documents after the IRS sends a notice

How to avoid this error:

• If you use software, make sure the EITC section is fully filled out and all questions are answered.
• If you use paper forms, follow the IRS instructions step by step and attach all required schedules.
• If you receive a request from the IRS for more information, respond by the stated deadline and include all documents asked for.

Typical Documents to Gather Before Claiming the EITC

Being prepared reduces the chance of mistakes and delays. While exact needs vary, many people find it helpful to gather:

• Identification & SSNs

  • Social Security cards or official SSA documents for you, your spouse, and your children
  • Photo ID for you and your spouse (for in-person tax assistance)

• Income Records

  • W-2 forms from all employers
  • 1099-NEC, 1099-MISC, or 1099-K forms for contract or gig work
  • Records of cash earnings (invoices, receipts, logs)
  • Any records related to self-employment expenses

• Child & Residency Records (if claiming children)

  • School or daycare records with your child’s name and address
  • Medical records or insurance statements showing your child lived with you
  • Court orders, custody agreements, or adoption papers if applicable

• Household & Filing Status Records

  • Lease, mortgage statements, or utility bills with your name and address
  • Separation or divorce papers, if your marital situation is changing

These documents are not always required to be sent in with your initial return, but keeping them available can help you respond quickly if the IRS asks for proof.

How EITC-Related Errors Affect Refund Timing

The timeline for EITC refunds can be different from other refunds. The IRS often uses additional checks when EITC or Additional Child Tax Credit is claimed.

Here is a simple overview of how errors can affect the process:

If the IRS finds issues:

• You may receive a notice or letter explaining what information they need.
• You may need to verify identity, confirm income, or provide documents about your children and living situation.
• If you do not respond by the deadline, your EITC may be denied for that year, and your refund can be reduced.

What To Do if Your EITC Refund Is Delayed

If you believe your EITC is causing a delay:

1. Check your refund status

   • Use the official IRS “Where’s My Refund?” tool or automated phone line.
   • Be prepared with your Social Security number, filing status, and refund amount.

2. Read any IRS letters carefully

   • Look for notice numbers and instructions.
   • Note any deadline to respond.

3. Gather requested documents

   • Provide exactly what the notice asks for, such as:
     • Proof of identity
     • Proof your child lived with you
     • Verification of wages or self-employment income

4. Respond using official channels

   • Follow the mailing address or fax number listed on the letter.
   • Consider sending copies, not originals, and keep your own file.

5. Consider getting help

   • Low- to moderate-income taxpayers may qualify for free tax assistance through Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) programs.
   • You can call 211 in many areas to ask about local free tax preparation resources.
   • For complex or disputed cases, some people consult an enrolled agent, CPA, or tax attorney.

Remember that HowToGetAssistance.org cannot check your status or submit documents for you. All status checks and responses must go through official IRS contact points.

If the IRS Disallows Your EITC

Sometimes, after review, the IRS may disallow all or part of your Earned Income Tax Credit.

This can result in:

• A lower refund or a balance due
• A requirement to repay some or all of a prior EITC amount
• Possible penalties if the IRS finds reckless or intentional disregard of the rules
• A requirement to file a special form to claim EITC again in future years

Steps people often take in this situation:

1. Review the IRS notice

   • The notice usually explains why the EITC was denied and what your rights are.

2. Decide whether to appeal

   • If you believe the IRS made a mistake, you can usually request an appeal or reconsideration.
   • The process and deadline for appeal are described in your notice.

3. Provide supporting documentation

   • This may include school records, medical records, or housing documents that show your child lived with you, as well as proof of relationship and income records.

4. Get assistance if needed

   • Some taxpayers may qualify for help from Low-Income Taxpayer Clinics (LITCs), which are separate from the IRS but work with eligible individuals on disputes.
   • Contact information is typically listed in IRS materials or can be requested via the IRS helpline.

Again, appeals and reconsiderations must be handled through official IRS channels, not through this website.

How To Reduce the Risk of EITC Errors Before You File

Here are practical steps you can take before submitting your return:

1. Use a reliable method to file

   • Official IRS Free File options, reputable tax software, certified tax preparers, or free local tax clinics (such as VITA sites) often have built-in checks for EITC eligibility.

2. Double-check all personal information

   • Verify names, addresses, dates of birth, and SSNs for everyone on the return.

3. Confirm who qualifies as your child

   • Review relationship, age, and residency rules.
   • If your situation is complicated (shared custody, multi-generational households), consider asking an IRS representative or a qualified preparer.

4. Report all income accurately

   • Include all W-2s and 1099s.
   • Report cash and gig income even if no form was issued.
   • Keep a simple log or spreadsheet if you are self-employed.

5. Keep copies of your return and documents

   • Save copies of your tax return, W-2s, 1099s, and key records in case the IRS requests them later.

Avoiding EITC Scams and Non-Official “Helpers”

Because the EITC can be large, some dishonest preparers or scammers target people who qualify.

Warning signs to watch for:

• Someone promises you a huge EITC refund without asking detailed questions about your situation
• A preparer bases their fee on a percentage of your refund
• You are asked to sign a blank or incomplete tax return
• Someone offers to “get you your EITC faster” in exchange for a fee

How to verify you are on an official or trustworthy channel:

• Use the official IRS website or phone number listed in IRS publications or letters.
• For in-person help, look for recognized programs such as:
  • VITA (Volunteer Income Tax Assistance)
  • TCE (Tax Counseling for the Elderly)
• You can usually verify a paid preparer’s credentials and identification number through official IRS tools.

HowToGetAssistance.org is not a tax preparer, not an IRS partner, and not an application site. Any filing or payment arrangements should be made only through official IRS systems or a trusted, qualified preparer.

Key Takeaways to Keep Your EITC Refund On Track

• Accuracy matters: Small errors—especially with Social Security numbers, child rules, income, and filing status—are common sources of EITC delays.
• Preparation helps: Gather ID, income records, and child-residency documents before you file.
• Communication is crucial: If multiple people could claim the same child, agree in advance who will claim which credits.
• Watch for IRS letters: Respond promptly using the contact details and deadlines shown in the notice.
• Use trusted help: Consider official IRS resources, free local tax assistance, or reputable preparers if your situation is complicated.

By taking time to understand the EITC rules and carefully checking your return before submitting it through official IRS channels, you can greatly reduce the chances of errors that slow down your refund.