Average Tax Credit Last Year Was $150

LANSING, Mich. – In observance of Earned Income Tax Credit Awareness Day on Friday, Jan. 31, the Michigan Department of Treasury is reminding working families and individuals with low to moderate income that they may be able to receive Michigan’s Earned Income Tax Credit (EITC).

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 EITC is granted, the state of Michigan will provide a 6 percent supplemental EITC when the taxpayer files his or her state income tax return.   

“All eligible Michiganders should seek out this important tax credit,” State Treasurer Rachael Eubanks said. “The extra income this tax credit provides can be really helpful to working, low to moderate income families.”

The amount of the federal EITC 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.

During the 2018 tax year, approximately 729,600 claimants received the Michigan EITC, totaling more than $109.5 million with an average credit amount of $150.

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. More information about state of Michigan income taxes can be found at www.michigan.gov/incometax.

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