Earned Income and Child Tax credits made a “big difference” for a local family

Paris and Mikey, a married couple with five dependent children, planned to file their taxes separately for the 2023 tax season. That is, until they sat down with a volunteer tax preparer at a Free Tax Prep site run by United Way of Greater Cincinnati.

The IRS-certified volunteer examined how the Madisonville couple’s filing status would affect their eligibility for refunds and credits. The volunteer explained that by filing a joint return, instead of separately, they could claim both the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC).

“It made a really, really big difference,” Paris said.

A $5,000 difference.

Jan. 31, 2025, has been designated EITC Awareness Day to encourage more working families to take advantage of the refundable federal income tax credit. Annually from 2017 to 2021, on average, the EITC and CTC have lifted nearly 8 million people out of poverty, according to the IRS and U.S. census. But nearly one in five eligible taxpayers don’t claim the credit, the IRS says.

For Paris and Mikey’s family — and many others in the region — such a refund is essential. “It’s very important,” Paris said, “because it can help with bills — gas, food, basic necessities. We have a large family, so it’ll help a lot.”

Paris is a licensed practical nurse who stays home to care for their children. In past years, she has completed their returns herself using tax preparation software that she purchased. But she felt uncomfortable doing that after Mikey started an independent contractor business, which complicated their situation.

Paris’ mother told her about United Way’s Free Tax Prep, and the couple decided it was worth a try.

“To be able to get it done for free is a big help,” Paris said. “Also, I feel confident that everything was done correctly, because it was double-checked.

“We’re so grateful. It was a load off our shoulders.”

And $5,000 in their bank account.