Mayor Bowser Kicks Off Tax Season by Highlighting Resources for District Residents to Put Money Back in Their Pockets
(Washington, DC) – Today, Mayor Muriel Bowser and the DC Department of Insurance, Securities and Banking (DISB) kicked off the 2023 tax season by telling residents about tax credits and incentives that can put money back in their pockets, including the Earned Income Tax Credit (EITC), the District of Columbia Keep Child Care Affordable Tax Credit, and the Senior Citizen/Disabled Property Tax Relief program. The Mayor also spoke about the free tax preparation services available in the District.
“We don’t want DC residents leaving any money on the table this tax season,” said Mayor Bowser. “Too often, taxpayers miss out on opportunities to save or get back hundreds or thousands of dollars simply because they didn’t know a credit existed. So, we are spreading the word about the Earned Income Tax Credits, our child care tax credit, and more. If you are unsure whether you qualify, go to one of the free tax clinics and get advice from an expert.”
The event took place at the Benning Road/Minnesota Avenue Family Success Center in Ward 7, one of 10 Family Success Centers, which are operated by local non-profit organizations and supported by the DC Child and Family Services Agency. The centers are designed to connect families to services such as financial assistance, professional development, nutrition education, childcare, and healthcare. The Benning Road/ Minnesota Avenue Family Success Center is operated by the East of the River Family Strengthening Collaborative, Inc.
During the event, Mayor Bowser highlighted the following resources available to residents:
Federal Earned Income Tax Credit (Federal EITC)
The federal earned income tax credit (federal EITC) provides money back for people who work and who have a low or moderate income – generally individuals and families making less than $60,000. Through the federal EITC, residents can get back anywhere between $560 to $7,000, depending on the size of the family. To learn more visit: irs.gov/eitc.
DC’s Earned Income Tax Credit (DC EITC)
The District Earned Income Tax Credit (DC EITC) is a refundable credit for low- and moderate-income workers, separate from the federal EITC. The DC EITC is based on a percentage of the amount of the federal EITC reported on an individual’s federal income tax return. In past years, the amount of the DC credit was 40% of the amount of the federal EITC. This percentage has been increased to 70% for tax year 2022, one of the highest match rates in the country. To learn more, visit: disb.dc.gov/eitc.
District of Columbia Keep Child Care Affordable Tax Credit
Mayor Bowser created the Keep Child Care Affordable Tax Credit to make child care more affordable for District families. The credit is available to taxpayers based on the amount of eligible child care expenses paid by the taxpayer per eligible child. Last year, the amount of the Keep Child Care Affordable Tax Credit was a maximum of $1,020 per eligible child. To learn more, visit: MyTax.dc.gov.
Disabled or Senior Citizen Property Tax Relief
District of Columbia property owners may be eligible for property tax relief. The District offers several programs to assist property owners, first time homebuyers, and senior citizens. For example, the Senior Citizen Tax Relief Program applies to those property owners who occupy their property as their principal place of residence, are 65 years of age or older, and meet certain income requirements. When a property owner turns 65 years of age or older, or when he or she is disabled, he or she may file an application immediately for disabled or senior citizen property tax relief. This benefit reduces a qualified property owner's property tax by 50%. To learn more, visit: MyTax.dc.gov.
DC Free Tax Preparation Locations and Financial Assistance
- Free tax clinics are open to all residents. To view the complete list, visit: disb.dc.gov/freetaxprepresources.
- The AARP is partnering with DC to support seniors, which includes free tax assistance. To learn more, visit: taxaide.aarpfoundation.org/.
Residents can also use DC’s Financially Fit Program to learn more about how best to regulate their financial health. To learn more about the Financially Fit DC program, visit: financiallyfitdc.com.
“Our Financially Fit DC Program is designed to help residents take control of their personal financial health,” said DISB Commissioner Karima Woods. “It can guide you through creating budgets, managing your credit, buying a home, planning for retirement, and building wealth.”
The deadline to file taxes is April 18, 2023.