Jan. 3, 2010

Tax Relief for Working Families with Earned Income Tax Credit and Child Tax Credit

If your family’s income was less than $49,000 in 2009, you could be eligible for the Earned Income Tax Credit (EITC) when you file your tax return. The EITC is a special tax benefit from the federal government for working people with children who earn lower or moderate incomes. It’s designed to help reduce your tax burden and supplement your wages.

If you’re eligible, the Earned Income Tax Credit could mean a refund of up to $5,000 or more. Plus, you also may qualify for a Child Tax Credit of up to $1,000 for each of your children. There also are tax credits for saving for retirement, college expenses or even buying a house.

According to The Piton Foundation, which sponsors a statewide public information campaign about tax credits for families, more than 268,000 Colorado families received $470 million in tax refunds last year because of the Earned Income Tax Credit. But, unfortunately, many other eligible families did not receive these much-needed refunds because they weren’t aware of them, didn’t know they were eligible, or didn’t know how to apply.

There’s a free statewide hotline that you can call to learn how you can get these tax benefits and how to keep more of your refund by saving on tax preparation fees—even getting your tax return done for free!

For more information, dial 2-1-1 (it’s a free call) or go to www.piton.org/eitc. Claim all the tax credits you earned!