You can make a difference by educating low- and moderate-income families about federal and state tax credits that can help put thousands of dollars in their pockets!
When they file their taxes for 2011 in early 2012, working families may be eligible to claim valuable federal tax credits, such as:
- Earned Income Tax Credit, which helps provide a wage supplement for low and moderate-income families (those earning less than $49,078 annually). This credit is worth up to $5,751, and is refundable.
- Child Tax Credit, designed to help families offset some of the costs of raising children. This credit is worth up to $1,000 per child. Families who owe little or no income tax can receive some or all of this credit as a refund if they earned at least $3,000 in 2011.
- Child and Dependent Care Tax Credit, designed to offset some of the child or dependent care costs that families incur in order to work. This credit is worth up to $2,100, though the amount that can be claimed is limited by a family’s actual federal income tax liability.
In addition, many states offer their own child and dependent care tax credits and earned income tax credits, and a few offer child tax credits as well.
But families have to know about the credits in order to claim them on their state and federal tax returns, and you can help. Each tax filing season, the National Women’s Law Center, working with advocates and service providers across the country, conducts a national tax credits outreach campaign. Participating is easy!
- To download free outreach materials, many of which are available in Spanish and other languages, visit the NWLC Tax Credits Outreach Campaign webpage atwww.nwlc.org/LowerYourTaxes or the IRS EITC Central at www.eitc.irs.gov.
- To find out more about the location, dates, and hours of free tax preparation sites in your area, call the Internal Revenue Service toll-free at (800) 906-9887.
Filed under: Development
