LANSING – House Speaker Andy Dillon (D-Redford Twp.) today encouraged residents to take advantage of a special tax benefit designed for working families. The federal Earned Income Tax Credit (EITC) is a tax break for workers with moderate or low incomes, and an EITC tax refund can make a big difference for working families.
"It's important for our working families to know about every tool available to them as we work to get Michigan back on track, and this tax credit is a great resource," Dillon said. "High utility bills have taken a toll on families this winter, and the EITC can give families the financial boost they need right now. I want to make sure that no one misses out on this opportunity."
About 665,000 EITC returns were filed in Michigan in 2006. But about $300 million in federal Earned Income Tax Credits went unclaimed.
Residents who meet one of the following guidelines can qualify for the EITC:
Families with one child that earned less than $33,241 in 2007 (or less than $35,241 for married workers) are eligible for a credit of up to $2,853.
Families with two or more children that earned less than $37,783 in 2007 (or less than $39,783 for married workers) are eligible for a credit of up to $4,716.
Workers without a qualifying child who earned less than $12,590 in 2007 (or less than $14,590 for married workers) are eligible for a credit of up to $428.
Residents can learn more about the EITC and other important tax information – such as the federal tax rebates scheduled to be mailed out starting in May – by logging on to www.housedems.com. It's important that residents file their 2007 taxes so they can receive the tax rebate they deserve.
In a move to help residents keep more of their hard-earned dollars, Michigan will debut its own state EITC starting with the 2008 tax year. Workers who qualify will be able to receive a percentage of the federal EITC from the state on next year's tax return, in addition to what they get from the federal credit. To learn more about the EITC, and to use a free e-filing system for taxpayers with a household income of less than $50,000, go to www.MichiganEIC.org.
"Most of the money that working families get back on their tax returns is spent in our local economy, which can help create more jobs," Dillon said. "My top priority is to create jobs now and change Michigan for the better, and this tax credit can help in my effort while bringing relief to our working families."