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How do families claim their tax benefits?
They have to file their federal and state tax returns, even if they do not earn enough money to be legally required to file. In fact, these are the families who are often the most likely to qualify for some of the benefits.
Why Is outreach about tax credits and free tax sites needed?
Many eligible taxpayers fail to claim their earned income tax credits. Importantly, eligible taxpayers can file three years back for unclaimed tax credits. That means some families are eligible for thousands more dollars.
Where should families get their taxes prepared?
Because paid tax preparers may charge hundreds of dollars for families to claim the refunds due to them, CDF strongly encourages families who do not wish to prepare their own taxes to utilize free tax sites. All sites are staffed by certified tax preparers. Free tax sites are open to families who made less than $38,000, or individuals who made less than $28,000, during 2006. Most free tax sites open during the first week of February and run through the week of April 15, although a few sites are open year-round.
How do I find a free tax site?
There are free tax sites across Minnesota, operated by AccountAbility Minnesota, the Minnesota Department of Revenue and AARP. To find a free tax site near you, as well as hours and language availability, call United Way 211 (dial 2-1-1, or 651-291-0211 on a cell phone) or click here. (Note: Sites are still being finalized through Feb. 1.)
How much is the EITC worth in tax year 2006 (claimed this year)?
This year, the federal Earned Income Tax Credit (EITC) may provide up to about $4,500 for families, depending on their marital status and number of children:
- Workers who are raising more than one child in their home and have family income of less than $36,348 (or $38,348 for married workers) in 2006 can get an EITC of up to $4,536.
- Workers who are raising one child in their home and have family income of less than $32,001 (or $34,001 for married workers) in 2006 can get an EITC of up to $2,747.
- Workers who are not raising children in their home, who were between the ages 25 and 64 on December 31, 2006, and who have income below $12,120 (or $14,120 for married workers) can get an EITC of up to $412.
How much is the WFC worth in tax year 2006 (claimed this year)?
This year, the Minnesota Working Family Credit (WFC) may provide up to about $1,500 for families, depending on their marital status and number of children:
- Workers who are raising more than one child in their home and have family income of less than $36,348 (or $38,348 for married workers) in 2006 can get a WFC of up to $1,587.
- Workers who are raising one child in their home and have family income of less than $32,001 (or $34,001 for married workers) in 2006 can get a WFC of up to $823.
- Workers who are not raising children in their home, who were between the ages 25 and 64 on December 31, 2006, and who have income below $12,120 (or $14,120 for married workers) can get a WFC of up to $103.
Learn more about the Earned Income Tax Credit (EITC)
Learn more about the Working Family Credit (WFC)
Please see these pages for further information:
Tax Policy & Outreach
General Questions About Tax Season and the EITC/WFC
Outreach Resources and Materials
Tax Outreach, Research and Advocacy Links
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