LANSING – State Representative John Espinoza (D-Croswell) 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 that can make a big difference for working families.
"As we work to create good-paying jobs today and turn our state around, we also have to support our working families, and spreading the word about the Earned Income Tax Credit is part of that," Espinoza said. "This tax break is designed specifically to boost our workers, and getting an EITC refund can make a big difference when it comes to putting food on the table, fixing the car or paying the mortgage. Plus, because workers have money to spend at local businesses, the EITC also helps our local economy, which in turn supports and creates jobs in our communities."
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 set to be mailed starting in May – at www.housedems.com. Residents must file a 2007 tax return to receive a tax rebate. 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.