Why Are Tax Refunds Available Regardless of Income?

A tax refund occurs when a filer shows that he or she has paid more in income taxes than he or she is responsible for. It is dependent upon a difference between the tax that is owed to the Treasury at the end of the year and the amount that has been withheld throughout the year. If the amount of tax owed is less than the latter number, that individual receives a tax refund.

In 2025, the IRS reported that 70.1% of tax returns filed received a refund check, with an average refund of around $3,221. While $3,221 may be the average, some of the largest refunds are received by high-income taxpayers.

All filers are eligible to receive a tax refund, as it simply indicates that more was paid toward a bill than was necessary. When the government is owed less than what has already been paid, or qualified for, a taxpayer will receive a federal tax or state refund for the difference, regardless of their adjusted gross income.

Up to 43 million people with low incomes are not required to file or pay federal income taxes. In 2025, the gross low-income level was:

While these individuals aren't required to file taxes, they should do so to be eligible for a tax refund. This is because many tax credits are what's known as "refundable". These include the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). According to the IRS, 24 million eligible workers received approximately $70 billion in EITC as of December 2025.

People who file do not need to have earned an income or had any taxes withheld in order to receive one of these credits and if there is no tax due they are eligible to have the credit collected through a refund. Those wishing to take advantage of this do need to file an income tax return in order to collect it.

Frequently Asked Questions

How do you check EITC eligibility?
The Earned Income Tax Credit is a tax break for low- to moderate-income workers and families. Requirements include an earned income, a valid Social Security number, and proof of specific income thresholds. The Child Tax Credit provides credits or refunds to families with children who qualify. Eligible individuals and families must have children under 17 years of age who have lived with the filers for more than half of the tax year and who are claimed as dependents on the returns.

 

 

Q&A: How soon do you get your tax refund after filing?

How quickly you receive your tax refund often depends on the way you filed your return with the IRS. If you filed with E-file electronically, you usually receive your tax refund within 21 days. If you mailed in a paper return, however, it could take much longer. The IRS states it can take between six to eight weeks to send refunds associated with paper returns.

If you haven't received your refund within these timeframes, it could mean your return included mistakes. In less common instances, a delayed refund may indicate potential identity theft or fraud, or that your return requires further review.

You can check the status of a refund with the IRS Where's My Refund tool (more here). Updates are made every 24 hours, so you can check your status daily.