Tax Credits

It’s tax season again. And, believe it or not, that could mean good news–and extra cash for you.

Below is important information on how you can get money back from the IRS regardless of whether you owe money, expect a refund, or don’t owe any taxes.

Katrina Emergency Tax Relief Act

The Katrina Emergency Tax Relief Act offers a tax credit filing option to individuals who were living in a county hit by Hurricane Katrina, Rita or Wilma that was designated a federal disaster area. If you meet these requirements you can use your 2004 or 2005 income when figuring your Earned Income Credit and Child Tax Credit. This choice will enable many low- and moderate-income workers, whose 2005 income was reduced because of Katrina-related reasons, to get a larger tax refund.

Earned Income Credit: You May Qualify

The Earned Income Credit (EIC) is a special benefit for working people who earn low or moderate incomes. The EIC can help you get back some or all of the federal income tax that was taken out of your pay during the year. You might be eligible to get extra cash back from the IRS. The amount you get depends on how much money you earned last year and how many children you have.

Even if you don’t owe any income tax or did not have money withheld from your paychecks, you may qualify for money back. To receive the EIC, you must file any federal tax return (1040 EZ, 1040A or 1040). Learn more about the Earned Income Tax Credit and how you can get money back.

Getting A Child Tax Credit

In 2001 Congress passed a refundable component to the Child Tax Credit (CTC) for taxpayers raising dependent children. This credit is worth up to $1,000 per dependent child under age 17 in 2005 and is available as a refund check from the IRS. Claiming this credit does not reduce benefits earned from the Earned Income Credit.

New! Helpful changes to the Child Tax Credit take effect in 2005

Getting Credit for Child & Dependent Care

Another important tax credit that you may be able to use to put more money in your pocket is the Child and Dependent Care Credit. All families that earn enough money to pay federal income tax are eligible for a credit of up to $2,100, if they had child care or adult dependent care expenses in 2005 and meet the requirements. Claiming this credit does not reduce benefits earned from the Earned Income Credit. Additionally, a number of states have their own Child and Dependent Care credit. To find out if this is available in your state, contact your State Department of Revenue. Learn more about the Child and Dependent Tax Credit and how you can get money back.

Education Tax Credits

The Hope Scholarship Credit and the Lifetime Learning Credit were created to make learning more affordable. These credits provide money back for those paying college tuition. Find out more…

Getting Tax Forms

If you have additional questions or need tax forms, visit the IRS website at or call them toll-free at 1-800-TAX-1040 (800-829-1040). Most forms are also available at post offices and libraries.