Most people may not realize they are eligible for a few hundred dollars or even $5,000 from Earned Income Tax Credit. First-time parents and people with no children can be eligible to claim. The payment can be useful for paying bills, covering some home repairs, buying a car, or saving it for the future. Detroit Free Press reported the nationwide average tax credit for 2022 was about $2,043.
Detroit Mayor Mike Duggan tried to raise awareness of the value of earned income tax credit. A news media event was held Thursday at the Ford Resource and Engagement Center. He emphasized the tax credit can be considered a tax break for lower-income workers.
Mayor Duggan reiterated that workers who did not earn enough money to have taxes could be eligible for a tax refund. Priscilla Perkins, president and CEO of the Accounting Aid Society, also tried to clear the misinformation. She said filing a federal tax return, claiming the earned income tax credit, and receiving the refund does not necessarily mean losing other federal benefits such as the Supplemental Nutrition Assistance Program.
Detroit Mayor Mike Duggan urges taxpayers to take advantage and claim the Michigan Earned Income Tax Credits. (Photo: Yahoo News)
Also Read: Governor Pritzker Reminds Eligible Taxpayers to Take Advantage of Earned Income Tax Credit
Earned Income Tax Credit in Michigan
The earned income credit in Michigan amounts to 6% of the federal credit. The following table shows the expected amount of tax refund.
| Children or Relatives Claimed | Taxpayer | Federal Maximum Credit Amounts | Michigan Earned Income Tax Credit (6% of federal credit) | Expected amount to receive | |
| Single, Head of Household, or Widowed | Married Filing Jointly | ||||
| Zero | $16,480 | $22,610 | $560 | $34 | $594 |
| One | $43,492 | $49,622 | $3,733 | $224 | $3,957 |
| Two | $49,399 | $55,529 | $6,164 | $370 | $6,534 |
| Three or More | $53,057 | $59,187 | $6,935 | $416 | $7,351 |
(Data retrieved from the IRS website and Detroit Free Press)
The Internal Revenue Service urges taxpayers to claim their federal and state-earned income tax credits. They said only four out of five taxpayers claim their tax credit, meaning about 20% of taxpayers don’t get their money, leaving billions of dollars unclaimed.
Guide for Filing Tax
Frankly speaking, filing taxes is complicated, and it is much easier if someone else handles it for you. In Michigan, several organizations have offered free tax preparation services: Wayne Metropolitan Community Action Agency, Accounting Aid Society, and the AARP Foundation Tax-Aide Program.
You can also visit the IRS website for the list of organizations offering free tax return preparation and events in your area.
Expected Date to Receive the Refund
You can file your taxes now or until April 18. However, you cannot claim the Earned Income Tax Credit in February as the IRS needs enough time to review all applications to prevent fraud. You can visit the “Where’s My Refund?” tool, which will be updated by February 18. Early filers who chose direct deposit should expect to receive their refunds by February 28.
Read More: Gov. Gretchen Whitmer Plans to Send the Biggest Inflation Relief Checks to all Taxpayers in Michigan
