LANSING – State Representative Marc Corriveau (D-Northville) 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.
"I want everyone to know about this tax credit because it can be a big boost to many working families," Corriveau said. "This tax credit is designed specifically for workers, and it can help provide a cushion for families who are struggling to make ends meet. As I fight to create jobs for our workers and change Michigan for the better, I want to ensure that everyone gets the assistance and support that is available."
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.
"Many of the dollars that people get back in their state and federal tax returns find their way into our local economy," Corriveau said. "By cashing in on the federal Earned Income Tax Credit, our workers will be able to pad their wallets and spend a little more at our local stores. It's a win-win situation that will help get Michigan back on track."