Three federal tax credits are available this tax season to qualifying taxpayers to reduce your annual tax bill or contribute to a refund.
The Earned Income Tax Credit worth up to $6,600 in 2021 will provide working families with an economic boost next year. In addition, a new Colorado state law allows Individual Taxpayer Identification Number filers—many of whom are immigrant or refugee families—to claim the state EITC, which is 10% of the federal credit.
The Child Tax Credit is a partially refundable tax credit worth up to $2,000 per qualifying child and $500 per qualifying dependent. The credit is available for adjusted gross incomes under $200,000 for single filers and under $400,000 for married couples filing jointly. Families must meet additional eligibility requirements.
The Child and Dependent Care Tax Credit is a nonrefundable tax credit that provides 20% to 30% of up to $3,000 of child care and similar costs for a child under age 13, an incapacitated spouse or parent, and another dependent (and up to $6,000 of expenses for two more dependents) to allow parents or guardians to work. The value of the credit decreases for higher-income earners. Families must meet additional eligibility requirements.
Learn more about these federal tax credits at GetMyRefundCO.org or IRS.gov. And get free tax help if you earn $57,000 or less and estimate your refund at GetMyRefundCO.org.
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