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If you’re a lower-income or moderate-income wage earner in Minnesota, you may qualify for federal and state tax credits that can reduce the amount of taxes you owe.
To claim the credits, eligible workers must file federal and state income tax returns.
Free tax help is available
You can get free help to prepare your federal and state tax returns. In the Twin Cities, dial 2-1-1 or 651-291-0211. In Greater Minnesota, dial 800-543-7709.
Federal Earned Income Credit and Child Tax Credit
The Earned Income Credit (EIC) and Child Tax Credit (CTC) are federal tax benefits for lower- and moderate-income workers. The EIC can be worth up to $6,269 for families who worked in 2016.
Married workers raising children who earned less than about $53,500 in 2016 may be eligible for the EIC. Single workers not raising children who earned less than about $14,880 also may qualify. In addition to the federal EIC, some families also can get the federal CTC, which can be worth up to $1,000 per child.
Don’t miss out — according to estimates, 20-25 percent of eligible workers do not claim their federal EIC benefits.
Minnesota Working Families Credit and Child and Dependent Care Credit
If you qualify for the federal EIC, you also may qualify for the Minnesota Working Families Credit.
The Working Family Credit is a Minnesota state tax credit that helps low-income people who are working, especially those who are raising children. If you get the WFC, you will either get a larger state tax refund or pay less in state taxes. Households with incomes less than $39,510 in 2016 also may qualify for the Minnesota Child and Dependent Care Credit.
To claim the credit, file Schedule M1CD, Child and Dependent Care Credit, with your Minnesota income tax return.