Michigan families receive significant tax relief with the recent increase in the Earned Income Tax Credit (EITC). Starting in 2024, the Michigan EITC rises from 6% to 30% of the federal credit. This increase puts more money back into the hands of working families, helping reduce financial strain. Do y0u live in Michigan? Want the most out of your tax return this season? Contact ATS Advisors Today
What is EITC?
The EITC is a refundable credit that supports low- and moderate-income working individuals and families. It reduces the taxes owed or increases refunds for those who qualify. Families with children tend to benefit most, though some childless workers also qualify.
This 30% boost provides substantial financial relief for eligible Michigan residents. For example, if your federal EITC is $3,000, you can now receive $900 from Michigan instead of $180. This increase can make a meaningful difference for families, covering essential expenses such as housing, utilities, or groceries.
Eligibility:
Eligibility for the EITC depends on income, family size, and filing status. In 2024, families earning under $59,187 may qualify, depending on their circumstances. Single individuals and married couples without children may also receive benefits if they meet lower income thresholds.
The credit especially helps families in urban and rural areas where income disparities remain significant. It supports local economies by enabling recipients to spend more on necessities within their communities. This creates a ripple effect, strengthening Michigan’s economic stability.
Claiming the Michigan EITC is straightforward. Taxpayers simply file their state and federal returns and claim the federal EITC. The Michigan Treasury Department calculates the 30% state match automatically. To ensure accuracy, you should check eligibility requirements and provide all necessary documentation when filing.
Governor Gretchen Whitmer and lawmakers championed this increase, emphasizing its potential to reduce child poverty statewide. By significantly expanding the credit, Michigan aims to narrow the gap between low-income families and financial security. Experts predict this increase will benefit nearly 750,000 Michigan households in 2024.
The EITC encourages employment by rewarding work, making it a powerful tool for both economic and social improvement. Families see direct benefits while employers may experience increased productivity from less financially stressed workers.
Financial advisors recommend that eligible taxpayers plan how to use their increased refunds effectively. Consider paying down debt, saving for emergencies, or investing in education. These strategies can help maximize the long-term benefits of the EITC increase.
Community organizations and tax preparation centers often provide free help to ensure eligible individuals claim the EITC. Resources like Volunteer Income Tax Assistance (VITA) programs guide taxpayers through the process at no cost.
Conclusion:
The EITC increase highlights Michigan’s commitment to improving economic outcomes for working families. With greater financial flexibility, more Michigan residents can focus on building a secure future. This policy shift represents a win for families, communities, and the state’s economy.
For more information, visit Michigan’s Department of Treasury website or consult a qualified tax professional. Make sure you claim your EITC benefits this tax season.
Michigan 30% EITC Increase – 2024