In 2003, almost 686,000 North Carolina taxpayers received a total of $1.3 billion in Earned Income Tax Credit (EITC) refunds with an average refund of $1,839. The EITC is a federal income tax credit for certain people who work and have earned income under $34,178. A tax credit usually means more money in your pocket. It reduces the amount of taxes you owe. The EITC may also give you a re-fund. Get IRS Publication 596, Earned Income Credit for complete details.

The Child Tax Credit (CTC) is a credit that can reduce your taxes. You may be able to take a credit on your federal tax return for your children under age 17. Beginning in 2003, the credit has been increased up to $1,000 per qualifying child. Taxpayers not qualifying for the CTC may qualify for the Additional Child Tax Credit. Get IRS Publication 972, Child Tax Credit for complete details. Call 1-800-829-3676 with questions or to request the free IRS publications. It’s never too early to consider your family’s budget and tax implications.