What This Notice Means
Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC), comes from your employer, not from an IRS review of your account. Employers hand it out to make workers aware of an important tax benefit. It doesn't mean you owe anything, and it doesn't mean the IRS is looking at your return.
The EIC is a refundable tax credit for certain workers. Refundable means you can get money back even if you had no income tax withheld from your pay and owe no tax.
How Much It Can Be Worth
The amount depends on your income and how many qualifying children you have. The 2025 version of the notice lists a maximum credit of $649 with no qualifying children, and up to $8,046 with three or more qualifying children who have valid Social Security numbers. The amounts change each year.
What to Do
- Check whether you qualify. Publication 596 explains the rules.
- File a tax return. You must file to get the credit, even if you aren't otherwise required to file.
- Attach Schedule EIC if you are claiming the credit with a qualifying child.
- Look into free filing help. Many people qualify for IRS Free File or free in-person help from IRS-certified volunteers.
Be Accurate
Claim the credit only if you meet the rules. The IRS reviews EIC claims, and an incorrect claim can lead to a changed return, a bill, and limits on claiming the credit in later years. Keep records that show your income and where your children lived.
If the IRS has questioned an Earned Income Credit you claimed, call us at (813) 229-7100.