Senator Isaacson: Putting more money in your pocket through the Working Family Tax Credit and the Child and Dependent Care Tax Credit
Putting more money in your pocket through the Working Family Tax Credit and the Child and Dependent Care Tax Credit
One of my top priorities this session is to expand economic opportunity for area residents. Two important and effective programs I encourage people to take advantage of are the Working Family Tax Credit and Child and Dependent Care Tax Credit. These two tax credits are designed to help people pay for child care, education and training, transportation and other things they need to succeed in the workplace.
During the first week of the legislative session, Governor Dayton introduced a proposal to expand these two credits as a part of the 2017 tax plan. The existing Working Family Tax Credit provides tax rebates to small number of hardworking, low-income families. The current proposal would broaden the reach of the Working Family Credit by investing $93.9 million to make 107,000 new households eligible. In addition, more than 260,000 families currently receiving the credit would see an increase. The average family would save an additional $124 per year.
Another proposal in the Governor’s tax bill I support is the expansion of the state’s Child and Dependent Care Credit. This credit offsets some of the costs Minnesota families pay for child care. As a father of three children, I am well aware of the high cost of child care. In fact, Minnesota has some of the highest child care costs in the country, with some families paying more than $10,000 per year for each child.
Under current law, only 33,000 Minnesota families are eligible to receive tax credits for child care. If this provision passes into law, the child-care tax credit would expand to 95,000 more families and increase the yearly credits for low-income earners. This is an important provision because the credit hasn’t kept up with the rising costs of child care and will allow more working parents to qualify.
I remain committed to making working Minnesotans a priority in our tax and budget decisions in the State Senate. In addition to supporting these provisions this year, I will be introducing a “middle class” tax cut bill in the next few weeks. The legislation will lower the income tax rate for those who need it most, our middle class.
Finally, I invite everyone to attend an important Town Hall meeting on Saturday, Feb. 11. I have invited the Minnesota Department of Revenue to present information on some of the tax changes that could help thousands of families, answer questions, and listen to your concerns.
If you live in House District 42A, join me and Representative Randy Jessup at Shoreview City Hall from 10to 11:30 a.m. District 42A includes Arden Hills, Mounds View, Shoreview (north of County F and Snail Lake Roads) and the eastern edge of Spring Lake Park.
Residents of 42B should plan to join me and Representative Jamie Becker-Finn at Vadnais Heights City Hall later that day, from12 to 1:30 p.m.. District 42B includes Gem Lake, Shoreview (south of County Rd F), Vadnais Heights and parts of Roseville.
The Minnesota Department of Revenue will open state individual income tax filing season on January 23, 2017. Please join me for my February 11 town hall meetings and either way, check to see if you qualify for these important tax credits designed to put more money in your pocket and help working families. This year the filing deadline to submit 2016 tax returns is Monday, April 18, 2017, rather than the traditional April 15 date.