Recently, a message claiming "the IRS is sending out payments of up to $4,328" has been circulating in Chinese-American communities. This figure does have a real basis — it is the maximum Earned Income Tax Credit (EITC) available for the 2025 tax year to a household with one qualifying child. But one thing must be clarified first: the IRS does not "automatically send money." The EITC must be actively claimed by filing a tax return. Today, we'll walk you through, from a professional standpoint, how this credit is calculated, who qualifies, and how to claim it.
Editor's Note (Updated July 16, 2026): An earlier version of this article repeated the claim that "the IRS will automatically send taxpayers refund checks of up to $4,328." After verification, we found the IRS has no such automatic payment program — the $4,328 figure is actually the maximum EITC for the 2025 tax year for a household with one qualifying child. The article below has been rewritten with the correct information.
Where Does the $4,328 Figure Come From?
According to the IRS's published 2025 tax year figures, the maximum EITC amount is tiered by the number of qualifying children: taxpayers with no children can receive up to $649; those with one qualifying child up to $4,328; those with two children up to $7,152; and those with three or more children up to $8,046. The $4,328 figure that keeps appearing in the news corresponds to the "one child" tier. The actual amount you can receive depends on your earned income, filing status, and number of children — the credit first increases as income rises, plateaus over a certain income range, and then gradually phases out, reaching zero once income exceeds the limit.
One more note: some articles circulating online have linked the $4,328 figure to "2021 adjustments," which is inaccurate. The maximum EITC for the 2021 tax year (for three or more children) was $6,728, not $4,328, and the window to claim 2021 tax year refunds already closed on April 15, 2025. The $4,328 figure is for the 2025 tax year and has nothing to do with pandemic-era relief payments.
What Is the Earned Income Tax Credit (EITC)?
The EITC is a refundable federal tax credit designed to encourage work among low- and moderate-income individuals and families. Many of our Chinese-American clients mistakenly believe that filing is only necessary if you have high income, or that if your income is low, there's "no refund to claim." This is a significant misconception. The EITC is one of the most important tax benefits in America's anti-poverty programs, and its core feature is that it's "refundable."
This means that even if your tax liability is zero, or you owe very little in taxes, as long as you qualify for the EITC, the government will pay you the amount that exceeds your tax liability directly. The size of this credit depends on your income, filing status, and the number of qualifying children you have.
Real-World Impact for Austin's Chinese Tax Clients
Here in Austin, the Chinese-American clients we work with are quite diverse. For Chinese business owners running small businesses or restaurants, self-employed individuals with fluctuating income, and families who have recently welcomed a new baby, the EITC is well worth serious consideration. In years when your income drops, you may fall right into the EITC eligibility range; and an increase in family size may bump you into a higher credit tier.
If you believe you've qualified in recent years but never claimed the credit, don't be discouraged: within the statutory three-year refund claim period, you can file an Amended Tax Return to claim it retroactively. This is exactly why we always emphasize the importance of working with an Austin Chinese CPA who is familiar with both U.S. and Chinese tax matters for professional planning — overlooking even a small detail can cost you hundreds or even thousands of dollars.
How to Claim It — and a Note on Refund Timing
The only way to claim the EITC is to file a federal tax return and complete the relevant credit section — even if your income is below the filing threshold and you technically don't need to file, you must still file a return to receive this refundable credit. The IRS will not automatically calculate and mail you a check.
Also, under the PATH Act, the IRS cannot issue refunds for returns claiming the EITC (or the Additional Child Tax Credit) before mid-February at the earliest. So if you file your return early in tax season, it's completely normal for your refund to arrive a few weeks later than others' — there's no need to worry, and don't be fooled by "expedited refund" advertisements from third-party services. If you're unsure whether you qualify, or uncertain about your filing history in past years, we recommend checking our Chinese Tax Filing Guide or consulting a professional accountant directly.
Beyond the EITC, What Other Tax Benefits Should You Know About?
The EITC is just one of many benefits within the U.S. tax system. There's also the Child Tax Credit, the Child and Dependent Care Credit, and more. For Chinese-American friends who hold assets or accounts overseas in particular, while it's important to stay compliant — such as with overseas account reporting covered in our FBAR Filing Guide — don't overlook the deductions and credits the tax code entitles you to as well.
Tax planning is more than just filling out a few forms every April — it's more like an ongoing process of asset review and optimization. Through careful planning, many seemingly minor credits can add up to a substantial sum over time. We encourage everyone to build up their foundational knowledge through our Tax Insights column, so that you can respond confidently to IRS notices or policy changes when they arise.
YZ CPA Note
We want to give a special warning about online scams: any text message, email, or social media post claiming "the IRS will automatically send you money" or "click this link to claim your $4,328" is almost certainly a scam — the EITC can only be claimed through a formal tax filing, and the IRS never asks for your personal information via phone, email, or text message to "process your refund." In addition, if your income situation or family structure has changed (such as marriage, having a child, or divorce), be sure to update this information on your most recent tax return to ensure you receive every credit you're entitled to accurately. If you have any concerns about your past tax returns, or want to learn how to maximize your future tax benefits, please seek professional help promptly.
For professional tax assistance, please visit our YZ CPA Services page or Contact Us.