National Women's Law Center

For Immediate Release: March 19, 2009
Contact: Ranit Schmelzer or Mary Robbins, 202-588-5180

Filing Tax Returns Can Give Families
A Significant Financial Boost This Year

(Washington, D.C.) As the April 15 tax filing deadline approaches, the National Women’s Law Center and its state partners are educating eligible families about the state and federal tax credits, including one new federal tax credit for new homebuyers, that they can receive if they file their taxes.

“The economic downturn has hit women and their families especially hard and they need all the help they can get,” said Nancy Duff Campbell, Co-President of the National Women’s Law Center. “This year, families may again be eligible for tax benefits like the federal Earned Income Tax Credit and the Child and Dependent Care Tax Credit. About 13 million children in low-income families could benefit from an expanded Child Tax Credit. And families who purchased their first home in 2009 may be able to claim a refundable First-Time Home Buyer Credit.”

Families may be eligible for:

Up to $2,100 from the federal Child and Dependent Care Tax Credit, designed to offset some of the child and dependent care costs that families pay in order to work.
Up to $1,000 per child from the federal Child Tax Credit, intended to help families offset some of the costs of raising children. Families who owe little or no income tax can receive at least some of this credit as a refund if they have at least $8,500 in earnings. Congress lowered the earnings threshold for 2008 from over $12,000 to $8,500.
Up to $4,824 from the Earned Income Tax Credit, which helps provide a wage supplement to eligible families, and is available as a refund for those families that owe little or no income tax.

And, under the American Recovery and Reinvestment Act of 2009, individuals and families may be eligible for a refundable First-Time Home Buyer Credit. Families who purchase their first home after Jan. 1, 2009, may be eligible for this credit, which is equal to the lesser of $8,000 ($4,000 for married-filing-separate returns) or 10 percent of the purchase price. If a family purchased its first home in 2009 before filing its 2008 tax return, the family may claim the First-Time Home Buyer Credit on its 2008 return.

In addition to the federal credits, families may be eligible for additional state credits. Twenty-eight states, including the District of Columbia, offer child and dependent care tax provisions (13 of which are refundable credits), and 24 states, including the District of Columbia, offer state earned income tax credits (19 of which are refundable). In addition, two states offer child tax credits.

“To be clear, individuals and families must file tax returns in order to receive these benefits,” emphasized Campbell. “And the IRS can help. On Saturday, March 21, the IRS is sponsoring a ‘Super Saturday’ event when Taxpayer Assistance Centers and hundreds of community free tax help sites nationwide will help people file their taxes.”

NWLC conducts a tax outreach campaign each year to assist state advocates in educating families about available tax benefits. As part of its tax credits outreach campaign, NWLC is offering a user-friendly online resource to explain the federal credits and state credits.

To find out what credits are available and where to receive free tax preparation services, visit www.nwlc.org/loweryourtaxes. For more information on changes to family tax credits in the American Recovery and Reinvestment Act, visit http://www.nwlc.org/details.cfm?id=3501&section=tax. And for more information about the IRS’ “Super Saturday” event, visit http://www.irs.gov/individuals/article/0,,id=204165,00.html?portlet=7.

For more information on advocacy efforts at the state level, please contact:

California: Mary Ignatius, CA Child Care Resource & Referral Network, (415) 882-0234
Iowa: Victor Elias, Child and Family Policy Center, (515) 280-9027
Minnesota: Ann McCully, MN Child Care Resources and Referral Network, (651) 290-9704 ext. 115
New Mexico: Sharon Kayne, NM Voices for Children, (505) 244-9505
New York: Carol Saginaw or Donna Hercules, NY State Child Care Coordinating Council, (518) 690-4217
Ohio: Judith Santmire, OH Child Care Resource & Referral Association, (614) 396-5959 ext. 312
Oregon: Mark Anderson, OR Child Care Resource & Referral Network, (503) 375-2644

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