Initiatives

Healthy Families Tax Credits Coalition

Who We Are

The Healthy Families Tax Credits Coalition is a statewide nonpartisan network of advocates working to improve the health and well-being of Massachusetts children and families by expanding the state Earned Income Tax Credit (EITC) and Child and Family Tax Credit (CFTC). Our growing coalition is led by Children’s HealthWatch at Boston Medical Center and consists of community-based agencies, legal advocates, researchers, professional associations, social service providers, tax preparers, health providers, and Massachusetts workers and their families. A list of partnership and supporting organizations of the Healthy Families Tax Credits Coalition can be found at the bottom of this page under the “supporting organizations” section.

Since 2015 our network has successfully advocated to increase the state EITC, expand eligibility to survivors of domestic violence and abandoned spouses, pass a robust and inclusive CFTC, and invest state dollars to support the Volunteer Income Tax Assistance (VITA) program. The coalition also maintains FindYourFunds.org, a site for Massachusetts residents with information on available tax credits and ways to file.

POLICY PRIORITIES
  1. Increase the Massachusetts Earned Income Tax Credit (EITC) from 40% to 50% of the value of federal EITC.
  2. Extend eligibility for the EITC to immigrants who file taxes with an Individual Taxpayer Identification Number (ITIN).
  3. Expand Child and Family Tax Credit (CFTC) eligibility to all children under the age of 18.
  4. Index the CFTC to inflation, thereby protecting its value over time.
  5. Increase the CFTC to at least $600 per dependent.
  6. Improve access to refundable family tax credits through sustained funding for the Volunteer Income Tax Assistance (VITA) program and a robust communications and outreach campaign.
Priority bills to strengthen family tax credits and advance worker equity in Massachusetts:
 
FY2027 budget priorities:
  1. Extend the EITC to immigrant and mixed-status families who pay and file taxes using an Individual Taxpayer Identification Number (ITIN).
  2. Level fund Volunteer Income Tax Assistance (VITA) at $1.5 million (line item 1201-0100)

Read our FY2027 budget testimony.

Watch our FY2027 budget briefing, featuring remarks from Representative Domb, Senator Eldridge, Representative Decker, and Senator DiDomenico

Read our letter to the Conference Committee.

 
The Earned Income Tax Credit

The Massachusetts EITC is a refundable tax credit for working individuals and families that piggybacks on the federal credit. The amount of the EITC depends on an individual’s income, marital status, and number of children. Currently, the Massachusetts EITC supports more than 400,000 workers and provides a 40% match to the federal EITC. In 2023, the average state EITC was $940, with the maximum credit amount ranging from $253-$3,132. By bolstering families’ incomes, these credits help to reduce poverty, improve health outcomes, and boost local communities and state economies.

The Child and Family Tax Credit

The Massachusetts CFTC is a refundable tax credit to support the cost of raising children and supporting other dependents. The credit provides $440 per eligible dependent (children under age 13, disabled dependents, senior dependents 65+, and/or spouses who are unable to care for themselves) and supports 565,000 families across Massachusetts. The CFTC is available to families of all income levels, as well as working immigrants who file taxes using an Individual Taxpayer Identification Number (ITIN). There is no limit on the amount of dependents that can be claimed, ensuring families of all sizes are fully supported.

Timeline
The Growth of Family Tax Credits
1997
MA enacts a state EITC

Matching 10% of the federal credit

2001
EITC increases to 15%
2015
Children's HealthWatch establishes the Healthy Families EITC Coalition

EITC increases to 23%.

2017
New tax filing status established

Allowing survivors of domestic violence and abandoned spouses to claim EITC

2018
EITC increases to 30%
2019
State funding for VITA sites

and operations included in the MA budget for the first time. Provides $200,000

2021
Temporary expansion of the federal Child Tax Credit
2021
MA converts 2 dependent deductions into refundable tax credits

worth $180 and $240, making them available to families with low incomes

2021
VITA line item increases $1.02 million
2022
VITA line item increases $1.5 million
2023
Children's HealthWatch relaunches its coalition

inclusive of a Child and Family Tax Credit, rebranded the Healthy Families Tax Credits Coalition

2023
EITC increases to 40%
2023
MA streamlines dependent credits

into a single Child and Family Tax Credit worth $310/dependent, removes dependent cap, and EITC increases to 40%

2024
Child and Family Tax Credit increases to $440/dependent

In the News

Letters & Statements

  • Letter to the Conference Committee regarding VITA funding in FY2027 budget negotiations.
  • Letter to the Conference Committee regarding VITA funding in FY2026 budget negotiations.
  • Letter to the MA Administration regarding supplemental funding for VITA in FY2026.
  • Statement on IRS-DHS Information Sharing Agreement
  • Letter to the MA Administration Regarding VITA Funding in Fiscal Year 26
  • Letter to the FY2026 Conference Committee in support of VITA 
  • Letter to the MA Poverty Commission on policies that support children and families
  • Letter from 107 statewide organizations to Senate leadership, urging them to extend the EITC to working immigrants in FY25
  • Statement on final tax package signed into law on October 4, 2023.
  • Letter from 107 local organizations and institutions in support of a $600, indexed Child and Family Tax Credit.
  • Letter signed by 14 economists in support of increasing the EITC match rate to 50% and expanding eligibility to ITIN filers.

Supporting Organizations

Organizations that support the mission and policy priorities of the Healthy Families Tax Credits Coalition include:

Get Involved

Interested in learning more or getting involved in the Healthy Families Tax Credits Coalition? Reach out to Charlotte Bruce at charlotte.bruce@bmc.org.

Visit our advocacy page at www.taxcreditfairnessma.org

Connect with us