Thursday, October 22, 2009

Tax Credits for Working Families, Information About Impacts and Tools

The Earned Income Tax Credit, Child Tax Credit (CTC), Additional Child Tax Credit (ACTC), and the dependent exemption all provide important benefits; a single parent with two children can receive up to $7,500 — depending a variety of factors. Too few families take advantage due to confusing eligiblity rules. A fact sheet by the Urban Institute outlines the value of the tax credits, and a new tool by the Children's Defense Fund helps families identify which benefits they should pursue. The Bridge to Benefits is a multi-state project to improve the well-being of families and individuals by linking them to public work support programs and tax credits. To date only four states have participated in the project, leaving families across the country without access to a useful tool. EITC, and other tax credits, are considered one of the most successful policies for lifting children out of poverty. For state policies to expand tax relief for working families.

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