No one likes to think about taxes. But recent changes to the federal tax laws can put thousands of dollars in the pockets of working families with children this coming tax-filing season.

As a result of these recent changes – including the first increase in over twenty years in the federal Credit for Child and Dependent Care expenses – you and the families you serve may be eligible for one or more of the following:

• Federal Earned Income Credit worth up to $4,204;
• Federal Credit for Child and Dependent Care Expenses worth up to $2,100; and
• Federal Child Tax Credit worth up to $1,000 per child; and

In addition, New York also offers:

• New York Child and Dependent Care Credit worth up to $2,310 and
• New York Earned Income Credit worth up to $1,261.

Even if you don’t owe income taxes you may be eligible for a refund check simply by claiming these credits on your federal and state tax returns!

These credits can be used by families to help meet their child care expenses, and some are specifically designed to do just that. The federal Credit for Child and Dependent Care Expenses is available to families at all income levels to offset a percentage of qualifying child and dependent care expenses. For families with income of $15,000 or less the credit is worth up to $2,100, though the amount that can be claimed is limited by a family’s actual federal income tax liability. The maximum credit available gradually decreases as income increases. Families with income above $43,000 can receive up to $1,200. New York offers its own Child and Dependent Care Credit to families to offset a percentage of the same qualifying child and dependent care expenses as the federal credit. The maximum value of the New York credit is $2,310 and it is refundable – so even if a family owes very little or no state income taxes, it will be able to benefit from the credit, with some or all of the state credit value received as a tax refund.

In addition to the federal Credit for Child and Dependent Care Expenses and the New York Child and Dependent Care Credit, there are two federal credits and one state credit that families with children can claim, even if they do not have qualifying child care expenses. The federal Earned Income Credit can be worth up to $4,204 for families with two or more qualifying children and 2003 earnings of $33,692 or less (if single), or $34,692 or less (if married); or up to $2,547 for families with one qualifying child and 2003 earnings of $29,666 or less (if single), or $30,666 or less (if married). The federal Child Tax Credit can be worth up to $1,000 per child for families with income below $94,000 (if single), or below $129,000 (if married). Both the federal Earned Income Credit and Child Tax Credit are refundable, and are therefore available even to families who do not owe federal income taxes. In addition to these federal credits, New York offers a refundable Earned Income Credit calculated as a percentage of the federal Earned Income Credit. The New York Earned Income Credit can be worth up to $1,261.

If you find all of these child-related tax credits confusing, you are not alone. That’s why the New York State Child Care Coordinating Council and the National Women’s Law Center are launching together a tax credits outreach campaign to help inform working families with children about the thousands of dollars they may be entitled to receive through these credits, and about the location of free tax preparation sites that may assist them in filing their taxes and claiming these credits. The New York State Child Care Coordinating Council will distribute fliers and other materials developed by the National Women’s Law Center to child care providers and families throughout the state. Public service announcements placed by the New York State Child Care Coordinating Council will also help get the word out to families about the value of the credits and how to find out more about getting their tax returns prepared for free.

For more information about the tax credits outreach campaign in your state, contact the New York State Child Care Coordinating Council at (518) 690-4217 or e-mail or for more information on the federal and state child care credits, visit the National Women’s Law Center website at www.nwlc.org. Specific information about whether or not an individual qualifies for a tax credit may be obtained by contacting the IRS (federal tax credit information) at 1-800-829-1040 or the NYS Tax Line (state tax credit information) at 1-800-225-5829. New York City residents can call 311 for more information.