Tag: Campaign for Working Families

How to file for your child tax credit

This article is intended for the parents of 55,000 children in New Jersey and nearly 14,000 children in Philadelphia who won’t get their Child Tax Credit (CTC) payment automatically. They are the children of immigrant parents, in households who earn so little they are not required to file a federal tax form, and perhaps even uninsured.

Families who did not have to file a 2019 or 2020 federal tax return, and missed out on Economic Impact/Stimulus payments, still have time to receive a monthly Child Tax Credit payment of $250 to $300 during 2021. Families can supply the IRS with needed information by using the Non-filer Sign-up Tool. The IRS will automatically determine eligibility and issue advance payments based on the information you give them.

A recent survey of free tax filing assistance sites reveals two organizations still helping individuals and families to file a tax return and/or assist in applying for the enhanced Child Tax Credit. They are:

New Jersey Citizen Action, 165 Halsey Street, Newark, NJ. Open Monday – Thursday, 9am-1pm. 888-829-3711. The are operating as a drop off and remote service only site – no face-to-face interviews. Visit their free tax preparation page. They encourage the clientele to visit an IRS child tax credit page in order to manage and receive the Child Tax Credit. This government website enables a family to: check if they qualify for advance CTC payments and submit needed information to qualify.

Campaign for Working Families, 1415 N. Broad Street, Philadelphia, PA, 215-454-6483, provides a number of options including: drop off appointments in Philadelphia, Montgomery County and various South Jersey locations, virtual appointments, and access to free tax software services. They are open for tax filing assistance through September. To schedule an appointment, visit their website at https://cwfphilly.org.

Additional information is available on the GetCTC website, a service of Code for America. Community advocates should also visit the Center on Budget and Policy Priorities’ 2021 CTC Outreach Resources page.

2019 Earned Income Tax Credit (EITC) Information

The Earned Income Tax Credit (EITC) is a refundable tax credit for families and individuals who have income from employment. It increases the amount refunded to a taxpayer or reduces the amount of tax owed. For 2018, 576,000 filers in New Jersey were able to be credited $1.4billion with an average tax refund of $2,360. However, almost 25% of eligible New Jersey taxpayers never file for EITC. You must file a tax return to claim your EITC.

Twenty-nine states, including New Jersey, maintain their own EITC program. New Jersey taxpayers may receive a credit equal to 39% of their federal credit. It is based on their employment earnings, filing status, number of children and adjusted gross income (AGI).

Income Limits and Maximum EITC Credits
Number of Qualifying Children Single/Head of Household or Widow(er), Income Must be Less Than Married Filing Jointly, Income Must be Less Than Maximum Federal Credit Maximum NJ State Credit
No Child $15,570 $21,370 $529 $206
One Child $41,094 $46,884 $3,526 $1,375
Two Children $46,703 $52,493 $5,828 $2,273
Three or More Children $50,162 $55,952 $6,557 $2,557

The EITC Assistant is an online tool to estimate if an individual or family may qualify by answering a number of questions. The IRS also publishes a one page fact sheet, IRS Notice 797 and a more detailed booklet, IRS Publication 596.

Free assistance to prepare and file your federal income tax return is available from a number of organizations and programs. The United Way and H&R Block partner to offer MyFreeTaxes. All income levels are eligible to file both federal and state returns for free using MyFreeTaxes.com. Also available is Free File another free, easy to use online software program. Taxpayers whose adjusted gross income is $69,000 and below are eligible. The AARP Foundation Tax-Aide program offers free tax preparation to low and moderate-income taxpayers, especially age 50 and older.

The Volunteer Income Tax Assistance (VITA) program offers free tax help to people who generally make $56,000 or less, persons with disabilities and limited English speaking taxpayers who need assistance in preparing their own tax returns. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals. In addition to VITA, the Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. Most VITA and TCE sites are open February to April.

The IRS provides a Find a Location for Free Tax Help page. The NJ 2-1-1 Partnership maintains a NJ Free Tax Assistance Locations page. South Jersey residents in Atlantic, Burlington, Camden, Cape May and Cumberland Counties, as well as residents in Philadelphia and Montgomery County, can get tax preparation help from the non-profit Campaign for Working Families.

Non-profits, advocacy groups and government agencies can participate in outreach efforts by promoting the NJEITC page and their NJEITC Informational Flyer. Groups interested in conducting an outreach campaign or promoting EITC on social media should subscribe to the Center on Budget and Policy Priorities’ Get It Back Campaign.

Employers are encouraged to distribute copies of “Have You Told Your Employees About the Earned Income Credit (EIC)?”, available as Notice 1015 by the IRS. The New Jersey Division of Taxation publishes a Statement to Employees.

Smartphone users can download IRS2Go, the official IRS mobile app. You can use it to check your tax refund status or find free tax prepartion services, or even to send a payment to Uncle Sam.

EITC, Vita Sites And Free File

The Earned Income Tax Credit (EITC) is a refundable tax credit for families and individuals who have income from employment. It increases the amount refunded to a taxpayer or reduces the amount of tax owed. You must file a tax return to claim your EITC.

Twenty-eight states, including New Jersey, maintain their own state EITC program. New Jersey taxpayers may receive a credit equal to 37% of their federal credit. It is based on their employment earnings, filing status, number of children and adjusted gross income (AGI).

Income Limits and Maximum EITC Credits
Number of Qualifying Children Single/Head of Household or Widow(er), Income Must be Less Than Married Filing Jointly, Income Must be Less Than Maximum Federal Credit Maximum NJ State Credit
No Child $15,270 $20,950 $519 $192
One Child $40,320 $46,010 $3,461 $1,281
Two Children $45,802 $51,492 $5,716 $2,115
Three or More Children $49,194 $54,884 $6,431 $2,380

Free assistance to prepare and file your federal and state income tax returns are available from a number of organizations and programs, including a United Way listing of New Jersey VITA Sites. You can also access the IRS VITA Site Locator Tool. Free, easy to use online software is available to taxpayers with an Adjusted Gross Income of $66,000 or less through the Free File program.

The EITC Assistant is an online tool to help determine if a family may qualify for EITC by answering a number of questions. The IRS also publishes a one page fact sheet, IRS Notice 797 and a forty page booklet on EITC, IRS Publication 596.

Employers, have you told your employees about the Earned Income Tax Credit? If not, distribute copies of IRS Notice 1015. The New Jersey Division of Taxation also publishes a Statement to Employees with helpful links and phone numbers.

Nonprofits, advocacy groups and government agencies can participate in outreach efforts by distributing the Division of Family Development’s NJ 2018 EITC Flyer which is included on their EITC page. Groups interested in conducting an outreach campaign or promoting EITC on social media should subscribe to the Center on Budget and Policy Priorities’ Get It Back Campaign.

Another option is to download IRS2Go, the official IRS mobile app. You can use it to check the status of your tax refund or find free tax prepartion services, etc.

Philadelphia Area and South Jersey residents can find free tax site locations by visiting the
Campaign for Working Families website.