Starting in February 2022, Michigan taxpayers who qualified for the Earned Income Tax Credit will receive around $700K in refunds, according to Governor Gretchen Whitmer, as reported by The Detroit News. Those eligible may begin applying to receive the credit directly when preparing taxes for the 2021 filing season. The state Treasury estimates that over 900,000 Michiganders applied for the credit in 2020, resulting in a total of over $265M in reimbursement given out.

How does the Earned Income Tax Credit work in Michigan?

The Earned Income Tax Credit in Michigan is available to low and moderate-income workers who meet certain eligibility criteria. To be eligible for the credit, a taxpayer must have worked during the year and have a valid Social Security number. Income and household size are also taken into account. Any family or individual that earned less than $57,000 in 2020 is eligible to receive the credit. Single taxpayers with no dependent children must make less than $15,000 to claim the credit.

The amount of reimbursement for each eligible taxpayer is determined by their income and notable life changes that they have experienced over the past year. The state Treasury has set up an online calculator to help those claiming the credit determine their exact eligibility and potential reimbursement. Those claiming the credit will receive a tax-free payment with the amount of the credit advance in each paycheck throughout the year, or as a lump sum. Timely filing of taxes is essential to ensure the payments are properly processed.

What are the eligibility criteria for taxpayers to qualify for the Earned Income Tax Credit in Michigan?

Governor Whitmer has announced that the State of Michigan will be providing much needed relief for taxpayers eligible for the Earned Income Tax Credit (EITC). The state will issue $700,000 in refunds to those who qualify in February 2022. This amount is in addition to the advances that eligible taxpayers already receive throughout the year. To qualify for the EITC in Michigan, taxpayers must earn less than $57,000 and have a valid Social Security number. There are income and family size requirements to take into account in order to determine eligibility. The state Treasury has an online calculator to help those claiming the credit determine their reimbursement amount. This extra relief from the state will serve as a welcome boost to Michigan residents facing financial hardship in the year ahead.

How does the state Treasury determine the amount of reimbursement for each taxpayer?

The Treasury of Michigan determines the amount of reimbursement for each taxpayer based on their income and filing status. Taxpayers who qualify for the Earned Income Tax Credit must meet specific eligibility criteria, such as earning within a certain range, having a valid Social Security Number, and being a US citizen or resident alien. The credit is applied to the amount the taxpayer still owes (or increases the size of their refund if they don’t owe anything). Depending on earnings, taxpayers can receive anywhere from $387 to $669 in refunds, with those who have more than three qualifying childrenon average receiving the highest amount.