LANSING – State Representative Robert Dean (D-Grand Rapids) today encouraged Kent County 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.
"So many of our residents are working their fingers to the bone just to get by in these difficult economic times," Dean said. "At a time when many folks are working two jobs to put food on the table, it's hard for them to find the time to investigate what tax benefits they may qualify for. That's why I want to spread the word about the EITC."
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.
"Our country is always giving tax breaks to the wealthy and the big corporations," Dean said. "Through the EITC, the workers who are the backbone of our state can get back the money they have earned and pump it back into our economy. This program can make a real difference, and I want all of our hard working residents to be aware of it."