HONOLULU (KHON2) — It’s tax season. Lots of people have questions, and pretty much everyone is dreading it.
With state and federal deadlines looming in our future, it’s important that we understand what credits are available to Hawaii families.
This is especially true for low-income households.
“The combination of federal and state tax credits has continued to benefit vulnerable families in our islands,” said Deborah Zysman, executive director of Hawai‘i Children’s Action Network.
HCAN is a nonprofit organization that advocates for a better quality of life for Hawai‘i families. According to them, these are four tax credits Hawaii’s families can rely on.
Key tax credits available for Hawai‘i families:
1. Earned Income Tax Credit (EITC): For this tax credit, we are looking at households earning less than $67,000. These families can receive up to $7,830 from the Internal Revenue Service and $3,132 from the State of Hawai‘i.
2. Child Tax Credit (CTC): This tax credit covers families with children up to 16 years old. They can qualify for up to $2,000 per child through the federal CTC as long as they worked in 2024.
3. Child and Dependent Care Tax Credit: For this one, it helps working families who paid for childcare or caregiving services. These families can receive up to $2,100 from the IRS and $3,000 from the State of Hawai‘i.
4. Food/Excise Tax Credit: Eligible households can receive up to $220 per family member. Despite the fact that families in Hawaii were eligible for around $42 million through this credit, an analysis revealed that in 2021, more than $15 million in credits went unclaimed, primarily because around 140,000 eligible families did not file tax returns.
“It is money that is theirs for the asking,” added Zysman.
To find out more about these tax credits, click here. You can click here to learn more about HCAN.
These tax credits are an opportunity for low-income households in Hawai‘i to receive money they are entitled to but may be missing out on due to filing barriers.