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January 17, 2014
(Special thanks to our friends at Make Change NoCo for sharing their expertise on this important topic!)
Thousands of working families in Colorado could overlook important federal tax credits in 2014 because they simply don't know they exist. They could miss out on $5,000 or more in federal income tax refunds through the Earned Income Tax Credit (EITC) and other tax benefits.
“This money can make a real difference to working families particularly when they're struggling in this recovering economy and tough job market,” said Laurel Kubin, director, Larimer County Extension.
The EITC is a refundable tax credit available to lower-income workers and their families. Workers earning less than about $50,000 from wages, self-employment, or farming could qualify. Many people will qualify for the first time this year due to changes in their income, their marital status, or parental status, according to the IRS.
But the IRS estimates only four out of five eligible working adults currently claim this credit. The Piton Foundation estimates that 50,000 Coloradans miss out on as much as $85 million in EITC refunds each year.
You may qualify for the EITC:
|IF YOU HAVE:||YOU EARNED INCOME LESS THAN:||YOU MAY BE ABLE TO CLAIM UP TO:|
|3 qualifying children||$46,227 ($51,567 married filing jointly)||$6,044|
|2 qualifying children||$43,038 ($48,378 married filing jointly)||$5,372|
|1 qualifying child||$37,870 ($42,210 married filing jointly)||$3,250|
|No children||$14,340 ($19,680 married filing jointly)||$487|
Tax credits, like the EITC, help working families in Colorado and also help stimulate our economy. Tax credits are primarily used to pay for necessities such as utilities, food, housing, transportation, education, and health care. According to Piton, programs like the EITC are associated with a boost in children's school readiness and achievement, health outcomes, and future economic success. The local economy is also stimulated as economists estimate that tax credit dollars are re-spent threeto five times in the local business community.
Call 2-1-1 (or 970-407-7066) to learn more about your tax credit eligibility and find the location of a free tax preparation site near you. You can also click here for complete information.
Copyright 2015 United Way of Larimer County