LANSING, Mich. (WWJ) – Gov. Gretchen Whitmer is encouraging eligible Michiganders to claim the earned income tax credit, which would help them get more money back after filing their 2021 tax returns.
Whitmer and the Michigan Department of Treasury say those who qualify and claim the EITC 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,” Whitmer said, per a press release.
For the fiscal year 2023 Whitmer has proposed tripling the Michigan EITC. Her budget recommendation “takes advantage of the opportunity Michigan has to cut taxes for hardworking families by tripling the Michigan EITC.
She says that would 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.
The governor says too many eligible families and individuals don’t file for the EITC, which is why she’s encouraging Michiganders 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,” she said.
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.
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About 713,000 Michigan claimants received the federal EITC in 2020, totaling nearly $1.8 billion, with an average credit amount of $2,467,” Whitmer’s office said.
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.