Did you know that a national company that prepares tax forms, with a number of offices in the Capital Region, charges close to $90 to complete a simple tax return? And that is if you have only one W-2 form. If you have more than one job, the cost goes up.
This year has been very difficult for many of the families we work with and with another tax season upon us, they need all the help they can get. As providers, we are in a unique position to educate them about the tax benefits and free tax preparation that is available.
According to the National Women's Law Center, every year, thousands of families fail to claim federal and state tax credits for which they are eligible, leaving billions of dollars unclaimed. Now, more than ever, families could benefit in a big way! The credits may reduce the income taxes that some families must pay or even give refunds back to families whose incomes are too low to owe anything.
Here are some tips so that you can help your clients receive every tax benefit they are entitled to:
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Refer them to one of the free tax preparation services in the Capital Region; we've included a list below.
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Remind them that they can get a "refund," even if they don't owe any taxes, through the Earned Income Credit program. If they have children and/or other dependents, they may also be eligible for the Child Tax Credit and the Child and Dependent Care Credit.
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Let them know that non-custodial parents can get an Earned Income Credit on their New York State taxes if they make support payments through a Support Collection Unit.
2009 Federal Tax Credits available:
The Child and Dependent Care Tax Credit: designed to offset some of the child and dependent care costs that families pay in order to work. Worth up to $2100
The Child Tax Credit: designed to help families offset some of the costs of raising children. Worth up to $1000
Making Work Pay Credit: a new refundable credit designed to increase workers' take-home pay. Worth up to $800
FYI, New York State is one of:
28 States that has a child and dependent care tax provision.
23 states that have Earned Income Tax Credits.
3 states that have child tax credits.
In a time of limited resources it is especially important that we help our clients make the best use of their money. Be sure to encourage your clients to make use of free tax assistance.
