Mar 08, 2005
Candice Chung, Office of Assembly Member Carol Liu 916-319-2044, Patty Siegel, California Child Care Resource & Referral Network (415.882.0234), Sarah Olivia Mercer, Parent Voices (415.882.0234)

Sacramento, CA - Federal and state tax credits can put thousands of dollars in the pockets of California families. That’s why the California Women’s Caucus, along with the California Child Care Resource and Referral Network and Parent Voices, is spreading the word that working parents may be eligible to lower their taxes or increase their refunds with these credits.

“Every year, billions of dollars get unnecessarily left on the table instead of going to the working moms and dads, and deserving families that need it,” said Assemblymember Carol Liu (D-La Cañada Flintridge), Chair of the Legislative Women’s Caucus. “California’s working families need to know that there are tax credits out there that can help them.”

Many families are unaware that they qualify for these credits or assume that they are difficult to secure. An estimated $36 million from the Child Tax Credit went unclaimed in 2001 and approximately $1.3 billion went unclaimed from the Earned Income Tax Credit in 2002.

Families could be eligible for one or all of the following tax credits:

  • The federal Child and Dependent Care Credit, designed to offset some of the child or dependent care costs that families incur in order to work. The maximum value of the credit is $2,100 this year.
  • The federal Child Tax Credit, designed to help families offset some of the costs of raising children. This credit is worth $1,000 per child.
  • The federal Earned Income Tax Credit, which helps provide a wage supplement for low-income families (those earning less than $35,458 annually). The maximum credit is $4,300 this year.
  • The California Child and Dependent Care Expenses Credit is worth up to $1,050 this year.

“It is imperative that the hard-working families of California know what they are entitled to under our tax laws” said Assemblymember Sharon Runner (R-Lancaster), Chair of the Republican Women’s Caucus. “It is important that we as Legislators take a part in helping educate parents about these complex issues.”

The California Child Care Resource and Referral Network and Parent Voices have available user-friendly materials about the tax credits in English, Spanish, Chinese and Vietnamese. FREE tax help is available at Volunteer Income Tax Assistance Sites across the state. For more information about obtaining free tax help in your local area please call the Child Care Connection at 1-800-543-7793 or visit