Family Connections
Grandparents, Aunts and Uncles Raising Their Grandchildren, Nieces and Nephews
Kinship Care
Service for Agencies, Schools and Community Groups
Upcoming events and group meetings
Connecting with other Families
INFORMATION FOR MAINE
TAX CREDITS
EARNED
INCOME CREDIT
If
you work during the tax year, you may be eligible for the Earned
Income Credit (EIC). If so, you'll owe less in taxes, and you could get
cash back. You can get the EIC even if you don't owe income tax
or you do not have children. The credit is much larger for taxpayers
with children.
If you are not the parent of a child or children living in your household, you can still claim the larger credit as long as the child lived in your home for the full tax year and you cared for the child as a member of the family.
How
do I claim the credit?
If
you were raising children in the tax year, file federal tax return forms
1040 or 1040A, not Form 1040EZ. Be sure to attach Schedule
EIC.
How
much credit can I get?
This depends
on the number of children and your income. In 2004, it was as much as $4204. For current guidelines, request information form the IRS. Call 1-800-829-3676
(1-800-TAX-Form).
CHILD
TAX CREDIT
This
tax credit can allow a credit of up to $1000 per child in 2004. The
child must be your dependent for tax income purposes, must be under 17
years old, and must be your grandchild, adopted child, birth child, stepchild,
or foster child. This credit is in addition to the Earned Income
Credit and the Child and Dependent Care Credit (see below). The Child
Tax Credit is a "refundable" tax credit like the EIC. This means
it can increase you refund from the IRS.
CHILD
AND DEPENDENT CARE CREDIT
The
Child and Dependent Care Credit is a tax benefit that 
helps
you pay for child care you need in order to work or look for
work. You can also claim this credit if you pay for the care
of a spouse or an adult dependent who cannot care for him or herself.
If you want to claim this credit, you must also declare the child as a dependent.
How
do I claim the credit?
You
can claim this credit in addition to the EIC and the Child Tax Credit.
If you earn too little to pay federal income tax, you cannot get this
credit.
You can
claim this credit if:
- You paid for care in the tax year for a child under age 13 or a disabled adult who lived with your family, and
- You needed the child or dependent care in order to work or look for work (and your spouse was also unavailable to provide care) and
- You paid over half the cost of keeping up your home (such as rent, food, etc,), and
- You paid less for your dependent care than your years income.
If you are married and filing jointly, the income of the spouse with the lowest income will be counted. There are special rules for figuring the income of a spouse who is a full-time student or is disabled.
In order to claim the credit, you must file Form 1040 or 1040A. Specific instructions on the credit are included with the forms.
NEED MORE TAX
INFORMATION
VITA is
an IRS program that helps people fill out their tax forms for free.
To find the VITA site near you, call 1-800-829-1040. Be patient
- the line is often busy.
The Pine Tree Legal Assistance Low Income Tax Clinic provides information and education to tax payers. It also provides assistance to people in tax "controversies" - denials and audits. Call the Pine Tree Legal Assistance office listed in your area phone book.
PROPERTY TAX
REFUND PROGRAM
The property
tax relief program is for qualified Maine homeowners and renters.
Eligibility and the refund amount are based on your income and the percent
of income you spent on property tax or rent. There are special eligibility
rules if you are elderly and have a low income. The maximum refund
is $1000.
To apply
fill out the Tax and Rent Refund Application form. You
may be able to get the form from your town office, Community Action Program
(see listings under Energy Assistance) or call the Maine Revenue Services at 624-7894.
You can apply each year between August 1 and January 31.
