Guest blog by Nathan Davis, Vice President of Community Impact at Mile High United Way 

Colorado weather notwithstanding, it is hard to believe that December is here. For many people, this is a time of relaxation as they take time away from the grind to spend with family and friends. But that is not the case here at Mile High United Way. My colleagues are busy creating holiday cheer for more than 1,200 children in our community, processing year-end donations, and answering hundreds of 211 calls each and every day from families facing hardship during this financially stressful season.

For me and our Tax Help Colorado team, December is our time to gear up for the rapidly approaching tax season, during which we and more than 500 volunteers will file over 11,000 tax returns that bring tens of millions of dollars in refunds back to Coloradans. (If you are reading this, it is not too late to become one of those volunteers!) This is a big job, but an important one: we know that for many families, the tax refund is the largest check or payment they will receive all year.

My portfolio at Mile High United Way encompasses two program areas that might seem unrelated, at first blush: free tax preparation and early childhood. I wouldn’t blame you for thinking “why is Early Milestones Colorado hosting a piece about a volunteer tax preparation program?” But thanks to partners like Early Milestones, our community and policymakers are coming to understand that these topics are more connected than one might think.

The reason for that is simple enough: young children live in families, and the annual tax refund is often an important part of a family’s economic planning. That money is not just a“ nice to have” for the people who receive it each year; claiming refundable tax credits like the Earned Income Credit and Additional Child Tax Credit has been linked by a large and growing body of research to dramatically improved life outcomes throughout the lifespan: increased birth weight, higher academic achievement and postsecondary enrollment, improved maternal mental health, and reduced child maltreatment, to name just a few.

Speaking more broadly, according to a 2019 analysis by the Economic Policy Institute, the only government program that lifts more people out of poverty than refundable tax credits do is Social Security—the large majority of whose beneficiaries are senior citizens. When it comes to lifting children and families out of poverty, refundable tax credits stand alone, and there is not even really a close second.

The evidence overwhelmingly demonstrates that tax credits are a powerful tool for creating family opportunity—and they do so in a way that respects the dignity and honors the lived experiences of the families who receive them. There is no shame or stigma associated with filing taxes; almost everyone has to do it every single year. And when the refund comes, it comes in the form of cold, hard cash, with which a family can do whatever it thinks is best or most needed. Direct cash transfer programs are often celebrated for acknowledging recipients as the experts in their own lives. We should consider refundable tax refunds in those same terms, as this 2025 tax year reaches its conclusion.

Which brings me to my other favorite thing about December: the end of the year is a time for reflection. As the days grow shorter and the year draws to a close, it is only natural to take stock of joys, celebrations, regrets, and wishes for the future. And at its root, that process is one of asking and answering questions: What has brought me the most joy this year? Where have I fallen short; how can I do better? How have my decisions and experiences aligned or conflicted with my values?

Just as we engage in this process of reflection in our personal lives, we can do so in our civic lives, as people with a vested interest in seeing our communities thrive. If, as the cliché goes, budgets are moral documents—and they are—what do our policies say about our values?

Early Milestones Colorado is a consistent champion for the idea that we should strive for a Colorado that is the best place to raise a child and the best place to be a child. So as a reflective exercise here in December, we can ask ourselves an important question: are we hitting the mark?

Every year, Vanderbilt University’s Prenatal-to-3 Policy Impact Center updates its Policy Impact Calculator and State Resource Rankings. This tool asks us to consider the story of Lina.

Lina could be you, someone you know, or someone you rely on. She may have cleaned your office building overnight or held the door for you this morning as you rushed out of the coffee shop on your way to work. The State Resource Rankings help us understand how states choose to invest resources in  Lina—or choose not to. And when I opened the 2025 State Resource Rankings, I was overwhelmed with pride to see our beloved Colorado at the very top of the list. And given my line of work, I was even prouder to see why.

Colorado’s suite of tax credits for low- and moderate-income families set us apart as the state with the most valuable cash-equivalent supports for Lina and her young family. This is thanks to the tireless work of advocates like Gary Community Ventures, Colorado Fiscal Institute, and so many others to pass the Family Affordability Tax Credit, which is in some ways similar to the COVID-era federal Child Tax Credit expansion that reduced child poverty in the United States by nearly half.

So as (tax year) 2025 winds down and visions of sugarplums dance in your head while visions of W-2s dance in mine, I hope you will take a moment to reflect on Lina and the thousands in our community like her. I hope you will think of the dramatically underpaid early childhood educators in our community who might be eligible for more than $15,000 in federal and state tax benefits. I hope you will celebrate that Colorado has the first and only refundable state tax credit for informal care workers like like grandparents, aunts, uncles, siblings, friends, and neighbors.

And I hope you will believe me when I say that we need people like you to ensure that these tax credits find their way quickly and smoothly into the lives of the families whose success is so essential to our community’s.

Happy December, and Happy Tax Season!