Eligible Michiganders Encouraged To Claim Earned Income Credit

Lansing, MI - On Friday, January 27, 2023 Michigan Governor Gretchen Whitmer and State Treasurer Rachael Eubanks encouraged eligible Michiganders to claim both the federal and state Earned Income Tax Credit (EITC) for working families when filing their 2022 individual income tax returns.

Those who qualify and claim the tax credit could pay less federal and state taxes, pay no tax or even get a tax refund.

“Under my plan, the Working Families Tax Credit will deliver an average of $3,000 in combined tax refunds to more than 700,000 families, putting money back in household budgets to help pay rent, buy school supplies, and put nutritious meals on the table,” said Governor Gretchen Whitmer. “Expanding this credit directly benefits almost 1 million kids—nearly half the kids in Michigan. It will empower working-class families of every race and in every county, from our small towns to our city centers. I encourage every eligible family to take advantage of this tax credit and get your refund when you file this year. I am so proud that the legislature passed a bill to at least triple the credit last night. I look forward to signing it!”

To qualify, individuals must meet certain requirements and file a federal income tax return, even if no tax is owed or there is no requirement to file a return. If a federal credit is granted, the state of Michigan will provide a 6% add-on credit when the taxpayer files their state income tax return. If the legislature expands the credit, the state will issue the increase as a supplemental payment later in the year.

The amount of the federal EITC for working families depends on income, filing status and number of qualifying children claimed as dependents on the taxpayer’s federal income tax return. The EITC reduces the amount of tax owed and may provide a refund.

“When filing an annual tax return, Michiganders should check with their tax preparer or tax preparation software to see if they can claim the EITC for working families on their federal and state tax returns,” said State Treasurer Rachael Eubanks. “The extra income this tax credit provides can help Michigan families care for their children and meet living expenses. It’s important for working families to see if they’re eligible.”

During the 2019 tax year, the last comparable year prior to the pandemic, more than 738,000 claimants received the Michigan EITC for working families, totaling more than $110 million with an average credit amount of $150.

Under the governor's plan, Michigan EITC households would see an average of $500. Under the bill just passed by the House, they would see an average of $750.

To inform and educate taxpayers about the importance of the EITC for working families, the Internal Revenue Service and Michigan Department of Treasury celebrated EITC Awareness Day on Friday, Jan. 27, 2023.

To learn more about the EITC, go to www.irs.gov/eitc. More information about state of Michigan income taxes can be found at www.michigan.gov/incometax.

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