In Michigan, working families with low incomes may qualify for a state version of the Earned Income Tax Credit (EITC). Like the federal version, Michigan\u2019s credit is offered to those with certain incomes to help encourage families to continue to work despite low wages and to keep those who do above the poverty line. Michigan\u2019s state EITC is modeled after the federal credit as far as eligibility requirements, so if a taxpayer in the state was able to claim the federal credit, they can also claim the state EITC.<\/p>\n
Michigan offers the EITC at 6% of the federal credit, and allows taxpayers to receive any amount that is greater than their tax liability back as a refund. Making the credit fully refundable helps working families regain some of their hard earned money, which they can use to offset other state or local taxes that may be significant. A family without state income tax liability can receive the entire amount of the EITC back as a refund, which can be extremely beneficial to a family stretching every dollar.<\/p>\n
The EITC is an important credit to pay attention to at tax time, because it lets families keep more of what they earned, and has shown to be effective at reducing poverty rates.<\/p>\n","protected":false},"excerpt":{"rendered":"
In Michigan, working families with low incomes may qualify for a state version of the Earned Income Tax Credit (EITC). Like the federal version, Michigan\u2019s credit is offered to those with certain incomes to help encourage families to continue to work despite low wages and to keep those who do above the poverty line. Michigan\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[126],"tags":[331,491,487],"class_list":["post-883","post","type-post","status-publish","format-standard","hentry","category-states","tag-michigan","tag-michigan-state","tag-state-eitc"],"yoast_head":"\n