Gov. Whitmer Encourages Eligible Families, Individuals to Get a Tax Break by Claiming Earned Income Tax Credit

Press Release

Governor Gretchen Whitmer and the Michigan Department of Treasury are encouraging eligible families and individuals to claim both the federal and state Earned Income Tax Credit (EITC) when filing their 2021 income taxes. Those who qualify and claim the credit could pay less federal tax, pay no tax or even get a tax refund.

"We can all agree that after a tough few years, extra money in your pocket will make a difference. The federal and state Earned Income Tax Credits make a difference for Michigan's families, whether it's helping them put food on the table or buy new school supplies for their kids. That's why my budget proposal would triple the Michigan EITC," said Governor Gretchen Whitmer. "But too many eligible families don't file for the EITC. So today, I am encouraging every eligible Michigan family to take advantage of this tax credit this year. It'll get more money back to Michiganders at a time they can really use it."

Governor Whitmer's FY23 budget recommendation takes advantage of the opportunity Michigan has to cut taxes for hardworking families by tripling the Michigan EITC to pull 22,000 Michiganders out of working poverty and deliver 730,000 households an average combined tax refund of $3,000 beginning with tax year 2022.

"I strongly encourage all eligible Michiganders to claim the Earned Income Tax Credit," said State Treasurer Rachael Eubanks. "It's been a challenging year for many residents and the extra income this tax credit provides can be really helpful to working families. Please take the opportunity to claim the EITC on both your federal and state individual income tax returns -- every refund helps Michigan families care for their children and meet living expenses."

To qualify for the EITC, individuals must:

Have worked and earned income under $57,414
Have investment income below $10,000 in the tax year 2021
Have a valid Social Security number by the due date of your 2021 return (including extensions)
Be a U.S. citizen or a resident alien all year
Not file Form 2555 (related to foreign earned income)
Michigan EITC calculation instructions are provided on the MI-1040. Tax preparation software calculates the state EITC if the federal EITC is granted. If a federal EITC is granted, the state of Michigan will provide a 6% supplemental EITC when the taxpayer files a state individual income tax return.

For the 2020 tax year, approximately 713,000 Michigan claimants received the federal EITC, totaling almost $1.8 billion with an average credit amount of $2,467.

The state Treasury Department estimates there are thousands of eligible Michiganders who are eligible for both the federal and state EITCs and do not claim them each year.

To learn more about the EITC, go to?www.irs.gov/eitc. For more information about services provided by the state Treasury Department, go to www.michigan.gov/treasury

Source