By Rosemary Heins,
University of Minnesota Extension Service

Tax credits are available for Minnesota working families to help pay for ìwish listî items. This wish list may include paying off out-of-pocket health care costs or large utility bills, or developing an emergency fund. It might even be for a down payment on a house, or a renterís deposit on a safer place to live.

More than 242,500 Minnesota families and individuals claimed the federal Earned Income Tax Credit (EITC) last year. The average Minnesota EITC claim in 2004 was worth $1,559. Add to that the Minnesota Working Family Tax Credit (WFTC), which those eligible for EITC may claim as well. Last yearís average combined EITC and WFTC was over $2,000.

Workers may be eligible for the EITC/WFTC if they have:
One child and family income of less than $31,338.
Two or more children and family income less than $35, 458.
No children, but ages 25-64 and income less than $12,490.
Both the EITC and WFTC can reduce the taxes owed to zero, and may result in a refund. Workers can get money from the credits even if they donít earn enough to owe any income taxes.

Working families may also be eligible for the:
Child Tax Credit (federal)

Child and Dependent Care Credits (federal and Minnesota)

Hope and Lifetime Learning Credits for college tuition (federal)

Retirement Saving Contribution Credit (federal)

Minnesota K-12 Education Credit and Subtraction (Minnesota)

Property Tax Refund for homeowners & renters (Minnesota)

Eligibility guidelines and income limits vary across the different credits. Keep in mind that eligible taxpayers can file three years back for unclaimed tax credits, except for a one-year limit on the property tax refund.

From now until April 15, trained volunteer tax help is available throughout Minnesota to help people complete tax forms, and the service is free.

To find a site near you, call First Call for Help at 2-1-1, or dial (800) 543-7709. You may also go on-line:www.211unitedway.org or www.taxes.state.mn.us for free tax assistance information.

(Rosemary Heins is a family resource management educator with the University of Minnesota Extension Service Regional Center, Andover)

Top of Page

©ECM Post Review

6448 Main Street
North Branch, MN 55056
Telephone: 651-674-7025
Fax: 651-674-7026
E-mail: editor.postreview@ecm-inc.com