About 1 out of 5 people eligible for the earned income tax credit (EITC) missed out on getting a "check in the mail" from the U.S. Treasury between tax years 2014 and 2022. Why? They did not claim the credit (tinyurl.com/36tjp3h7). As a longtime proponent of financial literacy education, that bothers me.

The EITC "helps low- to moderate-income workers and families get a tax break." And, importantly, it is a "refundable credit." (See the EITC webpage on IRS.gov -- tinyurl.com/4haknnxp).

Now, understanding the concept of a "refundable credit" takes some creativity: You can get a tax refund even if you don't owe a tax. Hard to understand, but the bottom line is this: If you qualify for the EITC, even if you don't need to file a tax return, you will want to.

The tax return in essence is your claim to a "check" from the government. That "check" arrives in your bank account in the form of a tax refund.

According to the IRS, if a taxpayer's tax bill "is less than the amount of a refundable credit, they can get the difference back in their refund" (tinyurl.com/bdebsrky). It's the reason that taxpayers who are not required to file a tax return might still want to do so, if they are eligible to claim refundable tax credits. As for nonrefundable tax credits, "once a taxpayer's liability is zero, the taxpayer won't get any leftover amount back as a refund."

Getting back to the EITC, a link on the EITC webpage will take you to the EITC Assistant, where you can answer questions to see if you are eligible.

There are a number of other tax-refundable (and non-refundable) credits available, and some have adjustments this year due to Public Law 119-21, also known as the One Big Beautiful Bill Act (tinyurl.com/2s48s73m).

Refundable tax credits (other than the EITC) include:

-- Premium Tax Credit, which helps "lower the amount eligible individuals and families pay each month for coverage under their qualified health plan purchased through a Marketplace." The IRS webpage "Premium Tax Credit (PTC) Overview" has more details (tinyurl.com/532m9spy).

-- The Fuel Tax Credit relates to fuel used for specific work-related activities -- operating a business or running a farm. The IRS notes on its Fuel Tax Credit webpage that the credit "is not available to most taxpayers" (tinyurl.com/3dyum2cv).

Some tax credits are partially refundable. One example: the Adoption Tax Credit (available to taxpayers who finalized an adoption in 2025 or started the process before 2025). See the IRS release "Tax credits for individuals" for more details (tinyurl.com/57bzkfy7).

Then there are nonrefundable tax credits, which can reduce taxes owed. Examples:

-- Child Tax Credit/Additional Child Tax Credit, which helps families with qualifying children get a tax break. The maximum amount for 2025 is $2,200 per qualifying child. See the IRS webpage "Child Tax Credit" (tinyurl.com/2s43ry99).

Note that the Additional Child Tax Credit is a refundable portion of the Child Tax Credit, with a possible refund of up to $1,700 per qualifying child.

-- Saver's Credit (also known as the Retirement Savings Contributions Credit), which allows you, if eligible, to take a tax credit for making eligible contributions to your IRA or employer-sponsored retirement plan. The maximum credit is $1,000 ($2,000 if married and filing jointly). See the Saver's Credit IRS webpage (tinyurl.com/4rzd7xj5).

An important tool related to the tax credits is the IRS Interactive Tax Assistant (tinyurl.com/cyuxwj39). It addresses many of the credits and will help you determine if you are eligible.

The importance of financial literacy education, and specifically tax literacy education, cannot be ignored.

As Erin Collins explained in the National Taxpayer Advocate's 2025 Annual Report to Congress, "a family that is eligible but does not claim the EITC may miss out on thousands of dollars in refunds and end up paying more in taxes because they misunderstand the rules, meaning the families who need these funds the most are likely missing this tax benefit" (tinyurl.com/3d3rtpwk).

If you think you might be eligible for the EITC, or any other tax credit, then use the IRS resources to find out. You could end with more money in your pocket.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

No one wants to think about or plan for what happens after someone passes away. Yet there is no way around the fact that life does come to an end at some point in time, most likely well within a 100-year time span.

More than 3 million deaths occurred in the United States in 2024, including the very young (about 30,000 age 14 and younger), according to provisional statistics provided by the National Center for Health Statistics (tinyurl.com/3epvsvrn).

Because of the inevitable, you might think that everyone would try to make things easier on their families by organizing their affairs. However, that is not the case for 55% of Americans who have no estate plan (as reported in the 2025 Estate Planning Report survey of 10,000 respondents conducted by the website Trust & Will -- tinyurl.com/3umxc8yp).

From my perspective of more than 30 years of working with high-net-worth families, I can tell you that it's a mistake to leave things to chance. Like so many things that affect assets, individuals often are simply not educated sufficiently when it comes to planning for the future.

However, helpful tools are available.

Two -- estateexec.com and executor.org -- focus on the role of serving as an executor of an estate.

Another resource helps with planning ahead. Called Buriedinwork.com, the website was founded by Adam Zuckerman, an estate attorney who became the executor of his father's estate in 2023 and found the experience "overwhelming, emotional, and full of hidden hurdles."

If you don't know where to start, the Plan Ahead section begins with an Estate Organization Quiz, which makes a key point in response to the question "Do you have a system in place to track and collect your critical information and end-of-life wishes?": "[W]hile you think you're organized, the question will only be answered after it's no longer possible for you to help."

Take a look at the Estate Essentials bundle that includes an estate summary worksheet and a planning pyramid. (The CLEAR Kit, which is offered for a fee, provides more comprehensive estate organizing options.)

Also look at "What a Will Does (and Doesn't Do)"; "There Are Three Ways to Create a Will" (I'd recommend the one involving a lawyer); and "Will Requirements by State" (tinyurl.com/38ph28rs).

You'll also find "What to Do When Someone Dies" (which discusses steps you need to take within the first few days, along with handling funeral plans and financial affairs), "How to Update your Estate and Finances After Divorce" (as well as a separate checklist that covers the same topics when getting married), and "How to Select the Right Legal Guardian for Your Children" (topics include "Evaluate Their Parenting Style and Values" and "Assess Their Financial Stability").

Another resource (for a fee) is Buried in Work's "After Loss To-Do List Consultation," which includes a 60-minute one-on-one Zoom or phone call that occurs within 72 hours of booking and involves an end-of-life expert who will guide the caller through "essential action items" to help avoid missing deadlines (tinyurl.com/afxesevr).

One of the issues when trying to plan ahead is how to talk about the future with family members. For a fee, there is "One More Story," which seeks to engage family members in storytelling, and "Nothing Left Unsaid" and "EOL (End of Life)," which help promote conversations about topics involving end-of-life issues and estate planning (tinyurl.com/5cb8uzjc).

To reiterate, planning ahead for a future event that is sure to happen is no easy task. I can assure you that no matter how difficult it may be to get started, we're talking about simply getting organized so that decisions can be made. With more complex situations, finances, income and estate taxes, and legacy wishes all need to be addressed with precision and competence. You want the best for your family after all. Take this opportunity to ensure that your wishes are fulfilled and your family is taken care of.

In a future column, we'll discuss how to find and work with a trusts and estates lawyer.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

The IRS tax-filing season opens Monday, Jan. 26, 2026, and this year, there are some important changes to note.

For starters, Direct File is gone -- but the Free File program remains.

Direct File was the e-filing program that allowed "eligible taxpayers to file their federal individual income tax return online directly with the IRS at no direct cost to the user," according to the Treasury Department's October 2025 report to Congress, "Report on the Replacement of Direct File" (tinyurl.com/56bubek8). Launched as a pilot program in 2023, Direct File was available to taxpayers in 25 states for tax year 2024, and nearly 300,000 returns were filed.

However, that was not enough. Direct File "had low overall participation and relatively high costs and burdens on the federal government, compared to other free filing options," reported the Treasury Department, citing a cost of at least $41 million for tax year 2024.

Meanwhile, the Free File e-filing program is very much alive. Free File debuted in 2003 and has eight private-sector partners offering guided tax software products for tax year 2025. To qualify, you must have an adjusted gross income (AGI) of $89,000 or less (tinyurl.com/mpt5uder). Note, however, that each of the tax partners also sets its own eligibility requirements.

According to the Internal Revenue Service Data Book 2024, released in May 2025 (tinyurl.com/m4v5933k), 3.1 million taxpayers used the Free File program for fiscal year 2024.

If you are above the $89,000 AGI mark, you can use Free File Fillable Forms -- electronic versions of IRS paper forms. The forms "are ideal for individuals who are comfortable preparing their own taxes using IRS instructions and publications," the IRS stated (tinyurl.com/4u3ak822).

The IRS expects to get around 164 million individual income tax returns in 2026, with most taxpayers filing electronically (tinyurl.com/fuubsbd7). The filing deadline for 2025 tax-year returns is April 15, 2026.

There is also a new schedule this year: Schedule 1-A (tinyurl.com/3ktpwact). This form deals with recently enacted tax deductions: no taxes on tips, overtime or car loan interest, and an enhanced deduction for seniors.

The IRS also recommends taxpayers visit the IRS.gov website for more information if they receive either of the following forms: 1099-K or 1099-DA.

Form 1099-DA is used to report digital asset proceeds from broker transactions. You can find the instructions at the IRS webpage "About Form 1099-DA" (tinyurl.com/epyh4ytf).

Form 1099-K is used for "payments you received for goods or services during the year" involving payment apps or online marketplaces (aka third party settlement organizations), or payments through credit, debit or gift cards. The IRS webpage "Understanding Your Form 1099-K" provides more details (tinyurl.com/bdfzzbsr).

If you need assistance in preparing your taxes, the IRS offers a number of resources:

-- A directory of federal tax preparers with credentials can be accessed through the IRS webpage "Need someone to prepare your tax return?" (tinyurl.com/4us2d4yj);

-- The IRS offers taxpayer assistance at its "Contact your local IRS Office" webpage (tinyurl.com/45wv4apx);

-- IRS-certified volunteers can be found at the "Free tax preparation for qualifying taxpayers" webpage (tinyurl.com/5n973dzb).

If you file and expect a refund, the "Where's My Refund?" IRS webpage will have details of your status generally around 24 hours after e-filing or after four weeks if you file a paper return (tinyurl.com/mw7pc48z). Note that the IRS is phasing out paper tax-refund checks (due to the 2025 Presidential Executive Order 14247, "Modernizing Payments To and From America's Bank Account" -- tinyurl.com/7zcxfa5h) and encourages you to establish a bank account (if you don't have one) if you are expecting a tax refund.

On another tax-related matter, the Federal Trade Commission recently released a warning about phone scams that claim you owe back taxes. The scammers say they are from an official-sounding agency and claim that you haven't paid your taxes. They offer to connect you with a "tax resolution officer" and "help you apply for an 'IRS liability reduction program'" while seeking to charge you fees or steal your personal information (tinyurl.com/sf6bf3jh).

The FTC reminds taxpayers that the IRS's "first contact with you will always come by mail, not by phone."

Find out more about efforts to combat fraud at the IRS webpage "Tax Scams" (tinyurl.com/3np2swtf).

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION