Calling All Tax Credit Stories!

This post is the sixth in a series of weekly posts containing tax information and filing tips. Check back next week for our next post, or click here to read past posts. 

Taxes. Just saying the word can make people groan. But the reality is, this time of year can actually bring good news to low- and moderate-income families all over the country. Federal tax credits such as the Child and Dependent Care Tax Credit (worth up to $2,100), the Child Tax Credit (worth up to $1,000 per child), and the Earned Income Tax Credit (worth up to $5,891), can give a boost to families whose incomes are too low to owe taxes. 

One family in Dallas took advantage of free tax preparation at a United Way VITA site and was rewarded for their effort. They qualified for the federal EITC and received nearly a $6,000 refund! Less than two weeks later, the refund was in the family's bank account and helped to pay for things that the family really needed: children's clothes, a crib, and a new car. 

Stories like this are important because they show that tax credits provide the extra income families need to make ends meet! Tax credits give an immediate financial boost to a family who may be struggling and it can lead to a better, more stable economic situation for the rest of the year. (Think about how much easier some daily responsibilities are when you have a reliable car!) 

These stories are also important because they disprove the idea that these tax credits are wasteful or unnecessary. The family tax credits were renewed for only 5 years by the Fiscal Cliff deal at the beginning of the year, and Congress will eventually have to decide whether or not to extend these credits. Many American families know first-hand how important these tax credits are to their economic well-being, but it is important that their representatives know it, too. Positive tax credit stories are the best defense against arguments for the elimination of tax credits for low- to moderate-income families. 

Do you have a story about how tax credits have benefited your family or a family you know? We'd love to hear it! 

Share a tax credits story on our website: http://www.nwlc.org/stories/share-your-story-do-you-know-someone-who-has-benefited-tax-credits 

And don't forget to see if you qualify for these benefits when you file your taxes this year!