Tax Refunds for People with Low Incomes

People who work and earn above certain amounts must file both state and federal income tax returns. Even if you earn below these amounts, you can file to get a refund. Tax forms this year should be filed by April 18, 2023. You file this year using the income information from the past year. So, in 2023 you file a tax return for 2022. If you owe money, you have to pay penalties and interest on any amount you don’t pay by April 18th.

Knowing your tax rights can mean money – sometimes a lot of money – to help your family. It is worth your time to check it out. You may be able to get your taxes done for free. To find help near you, call United Way at 2-1-1 statewide. Or go to their website https://www.211unitedway.org/. You can also find free help near you by visiting www.irs.gov/vita.

• did not live with a parent,
• is a qualifying child of more than one taxpayer, and
• they can’t agree who should claim the child,

then the taxpayer with the highest adjusted gross income gets to claim the credit.

See our fact sheet Can I Claim a Child on My Tax Return? for more information.

I have a foster child. Can I claim a foster child?

You can claim an eligible foster child. An eligible foster child is a child placed with you by an authorized placement agency, and who lived with you at least 6 months and 1 day during the year. They must meet the age rules above.
 

Can I claim the EITC if I don’t have a child?

Yes, if you:

• are at least 25 years old and under 65 years old
• aren’t the dependent of another
• aren’t the qualifying child of another, and
• lived in the United States for more than half of 2023

How do I get the EITC?

• File a federal tax return (Form 1040).
• If you have a qualifying child, file Form 1040 AND Schedule EIC (Form 1040).

The IRS figures out the EITC for you. If you qualify for the EITC, you can ask the IRS to figure the amount for you. If you have a qualifying child, you must still fill out the first half of Schedule EIC. 

Does the EITC affect my MFIP, SSI, food stamps or other benefits?

Generally, EITC payments don’t count as income during the month you get the check or the next month. After 2 months, any refund left may count toward your asset limit for figuring public assistance. If you are getting public assistance, talk to your case worker about the effect of the refund. 

EITC Pre-Certification

If you have been denied the EITC in the past, you may have to fill out forms to show you are eligible for EITC now. If the IRS sends you a letter stating you must do this, contact Legal Aid at 1-(877) 696-6529.

You can get a tax credit up to $2,000 for each child under age 17 that you claim as a dependent. Fill out the Child Tax Credit worksheet in the instruction booklet and Schedule 8812 (Form 1040). You can have an ITIN instead of a Social Security Number for this credit. The child must have a Social Security Number. You can claim this credit and the EITC. If you ignore the Child Tax Credit rules, you may be denied the Child Tax Credit for up to 10 years. If you do not qualify for the Child Tax Credit, you may qualify for the Federal Credit for Other Dependents, which is worth $500 per dependent.

If you have daycare costs for working or looking for work, you can get a tax credit. You can use costs you paid for a dependent child under age 13 or a disabled dependent of any age. To get this credit, you must have the taxpayer ID number of the person or program providing care. File Form 2441.

If you paid tuition and fees at a university or college for yourself, your spouse, or a dependent, you can get up to $2,500 in education credits for each eligible student. File Form 8863.

If you meet the EITC rules you can get the Minnesota Working Family Credit. If you have a qualifying child, you may also get the Minnesota Child Tax Credit. To claim these credits, fill out your federal tax forms and Minnesota forms M1 (the standard form) and Schedule M1CWFC.

You can get a state tax credit for the cost of care for a dependent while you worked or looked for work. The dependent can be a child under age 13 or a disabled dependent of any age. If you have a newborn child, you can claim the credit even if you had no dependent care expenses. To get this credit, fill out your federal tax forms and Minnesota forms M1 (the standard form) and Schedule M1CD. 

This refund is based on your income and the amount of property taxes you pay as a homeowner or renter. 

Renters get a Certificate of Rent Paid (CRP) from their landlord. If your landlord won’t give you one, see our fact sheet Renter’s Refund. 

Homeowner refunds are based on the next year’s statement of property taxes. The house or apartment must be your main place of residence or homestead. To claim this refund, fill out form M1PR. This form should be filed by August 15. You can claim this refund up to one year late.

The EITC and other income tax credits can be claimed up to 3 years late. If you did not file a tax return for some or all of the last 3 years, you can file now and claim the EITC and other credits. The forms and credit amounts change each year. Be sure to use the form for the year that you are filing for! For forms call the IRS at the number below or get them off their website, www.irs.gov. If you did file your return but did not claim credits you now think you could have used, you can file an amended Form 1040X (federal) or M1X (Minnesota) for any of the past 3 years.

For federal tax questions, call (800) TAX-1040.

For Minnesota tax questions, call (651) 296-3781.

Free tax preparation is available for low income, disabled persons, and senior citizens. To find help near you, call United Way statewide at 2-1-1. You can also find free help near you by visiting www.irs.gov/vita.