Taxpayers with earned income may qualify for both federal and state tax credits, even if your income is so low that you don’t need to file a return.

For federal taxes:

Earned Income Tax Credit
In tax year 2008, nearly 300,000 Minnesota taxpayers qualified for the federal Earned Income Tax Credit, putting $531 million into the pockets of the state’s low and moderate income households. The average Earned Income Tax Credit amount in Minnesota: $1,793.

For tax year 2009, taxpayers earning up to $48,279 (married filing jointly) may qualify, depending on the number of children in the household.

To claim the credit, you must file federal form 1040A or 1040 and Schedule EIC.

For more information on qualifying incomes for the federal Earned Income Tax Credit, visit www.irs.gov/eitc.

For state taxes:

Minnesota Working Family Credit
If you qualify for the federal Earned Income Credit, you also may qualify for Minnesota’s Working Family Credit.

Taxpayers with earned incomes up to $43,300 (married filing jointly) with two or more children may qualify.

For more information on eligibility guidelines for the Minnesota Working Family Credit, visit Minnesota Revenue’s website: www.taxes.state.mn.us.

Free tax help is available
If you need help preparing your taxes, the Minnesota Revenue website lists free income tax preparation sites. If you’re a senior citizen, disabled citizen, or an individual with an income of $35,000 or less ($45,000 or less for families), you are eligible for assistance.

You also can find free tax help by calling United Way at 211.

Reprinted from the Minneapolis Labor Review.