These tax credits (on federal taxes) are designed for working people who earn low or moderate incomes.
If you qualify, you’ll owe less in taxes and you could get cash back.

Earned Income Credit (EIC)
Workers who were raising one child in their home and had income of less than $32,001 (or $34,001 for married workers) in 2006 can get an EIC of up to $2,747. Workers who were raising more than one child in their home and had an income of less than $36,348 (or $38,348 for married workers) in 2006 can get an EIC of up to $4,536.

Workers who were not raising children in their home, were between ages 25 and 64 on December 31, 2006, and had income below $12,120 (or $14,120 for married workers) can get an EIC up to $412.

Child Tax Credit (CTC)
Low and moderate income working families also may qualify for the Child Tax Credit (CTC). The CTC is worth up to $1,000 in 2006 for each qualifying child under age 17 claimed on the worker’s tax return.

To be eligible for the CTC, a single or married worker must have a qualifying child under age 17 and have a taxable earned income above $11,300.

You can amend past returns
If you didn’t file for the EIC or CTC in previous years, but now believe you may qualify, you can amend tax returns for up to three years to claim the credits.

Free tax help available
To find out about getting free tax help through the Volunteer Income Tax Assistance program, call 1-800-829-1040 or 651-297-3724 or visit www.taxes.state.mn.us.

Reprinted from the Minneapolis Labor Review.