Credit Where Credit’s Due E N G A G I

Since the late 1980s, states have steadily enacted their own versions of the EITC, building on the policy successes of the federal EITC to supplement wages and incentivize labor force participation.3,4 State CTCs, seen as a way to provide additional financial support to families, have become more popular in recent years, largely in response to the expiration of the expanded CTC under the 2021 Amer. [...] For example, Colorado expanded the state version of both the CTC and the EITC in recent years to compensate for the end of temporary federal expansions in 2021—its state CTC is now the second largest in the country. [...] The state couples the credit to both the federal CTC and the federal Child and Dependent Care Tax Credit (CDCTC): Families making $100,000 or less are given the option to claim either a nonrefundable credit worth 5% of the federal CTC or a nonrefundable credit worth 20% of the federal CDCTC. [...] To build this program, the state created the Working Families Tax Credit Division dedicated to taxpayer outreach and coordination of the claiming process.48 The division’s collaboration with other state agencies and partner organizations was key to implementing the program. [...] To ease the filing process for eligible taxpayers, the division built an online portal that helps residents check their eligibility to claim the state EITC and to file.49 Moreover, the 16 website and most communications from the division’s office are available in both English and Spanish, while the paper form has been translated into 12 languages to increase accessibility of these materials.