This Tax Season, Claim the Tax Credits You Deserve
With the end of the first month of the new year, comes the arrival of W-2 forms in the mail — and the beginning of tax filing season! While less exciting than New Year’s Eve, tax season can be more important for your family’s finances. As this tax filing season begins, there are a few things families should think about to ensure they are taking advantage of all the tax credits available to them.
First, even if you are not required to file a federal tax return for 2015, it may still be to your advantage to file one anyway. Even if you have little to no federal tax liability, you may still be eligible for tax credits that could provide you and your family with additional income. These federal tax credits include:
- The Earned Income Tax Credit (EITC) — which can boost the wages of low- and-moderate-income families by up to $6,242. Keep an eye out for EITC Awareness Day events and resources in your community on January 29th!
- The Child Tax Credit (CTC) — which can be worth up to $1,000 per child to help ease the cost of raising children.
- The Child and Dependent Care Tax Credit (CDCTC) — which can provide up to $2,100 in tax assistance to help parents pay for the child care they need to go to work.
Additionally, many states have state tax credits similar to these federal ones that can further help working families.
Second, January 31 marks the end of open enrollment for health coverage under the Affordable Care Act. To help pay for health insurance, many individuals and families are eligible for financial assistance through the Premium Tax Credit. Not everyone qualifies for the Premium Tax Credit—for example, if you are offered health insurance through your employer or you are eligible for Medicare or Medicaid, you are not eligible for the Premium Tax Credit. But especially if you had any life changes over the past year, you should check to see whether you qualify.
So while tax season may seem like something to dread after the excitement of the holiday season, the next few months bring with them opportunities to claim tax credits that can boost your family’s income, as well as the opportunity to change or get health insurance coverage for the first time. Visit our website at www.nwlc.org/loweryourtaxes for more resources to help you get the credits you deserve.