Want a tax break worth an average of $2,000? When you file taxes this year, make sure you look into whether you qualify for the federal Earned Income Tax Credit and the Minnesota Working Family Credit.

These tax credits are designed specifically for working people. They can reduce the taxes you owe to zero, or qualify you for a refund of taxes you?ve already paid. The rules are the same for both credits, so if you qualify for one, you qualify for both.

You may qualify even if you don?t earn enough money to owe income taxes. You may qualify even if you are not required to file tax returns. But the only way to get the extra money is to file federal and state tax forms.

Many who qualify miss out
Last year, Minnesota families received an average of $2,000 in these credits. For a single parent with two children, the two credits combined can exceed $5,200.

However, about 20 percent of workers with low and moderate incomes did not apply, even though they were eligible. Because they did not apply, they lost out on more than $36 million.

Unfortunately, the IRS is making it harder for some workers to prove that they qualify for the Earned Income Tax Credit. The IRS says that 21 million workers apply for the credit, but that, in 1999, more than one-fourth of the claims were ?erroneous.?

So this year, the IRS is using a ?certification test,? forcing 25,000 families to offer more proof that the child for which they are claiming the credit lived with them for more than six months in 2003. The Children?s Defense Fund Minnesota says groups that will be targeted included grandparents, aunts and uncles raising a relative?s child; single fathers; and stepparents and foster parents.

Do you qualify?
You may qualify for an Earned Income Tax Credit and Minnesota Working Family Credit if:
? You have no dependent children, are age 25 to 64, and your income from work in 2003 was under $11,230 ($12,230 if married and filing a joint return).
? You have one dependent child and your income from work in 2003 was less than $29,666 ($30,666 if married and filing a joint return).
? You have two or more dependent children and your income from work in 2003 was less than $33,692 ($34,692 if married and filing a joint return).
For more information, call 1-800-829-3676 for a free copy of IRS Publication 596, or download it from www.irs.gov

Don?t miss these tax breaks
Other tax credits that families might be eligible for include:
? Child tax credit, Hope and Lifetime Learning credits for college tuition, and retirement savings contribution credit on federal tax forms.
? Child- and dependent-care credits on federal and state tax forms.
? Minnesota K-12 education credit and property tax refund on the state tax form.

Get your taxes done for free
If you need help figuring out your taxes, or can?t afford to pay to have your taxes done, trained volunteers will provide free assistance to low- and moderate-income workers at dozens of locations around Minnesota. The sites are being run by AccountAbility Minnesota.

Individuals making less than $25,000 and families making less than $35,000 are eligible. For sites available after Feb. 1, call The United Way?s First Call for Help at 211, or phone 651-297-3724 in the Twin Cities or 1-800-543-7709 elsewhere in the state.

Adapted from The Union Advocate, the official newspaper of the St. Paul Trades and Labor Assembly. E-mail The Advocate at: advocate@mtn.org