Jan. 31, 2008

Gov. Jennifer M. Granholm has proclaimed Jan. 31 as Earned Income Tax Credit Day in Michigan.

"The Internal Revenue Services estimates that more than $300 million in Earned Income Tax Credits goes unclaimed by low-income taxpayers in Michigan," DHS Director Ismael Ahmed said. "The Earned Income Tax Credit is a proven anti-poverty tool that makes the difference for Michigan's working families.

"Governor Granholm's proclamation helps more people learn about this critical support in their efforts to overcome poverty, put a down payment on a home, take care of their families, and become financially self-reliant."

For the 2007 tax season - depending on a person's income and number of dependents - the federal EITC can reach a maximum of:

• $4,716 for families with two or more children.
• $2,853 for families with one child.
• $428 for taxpayers with no children.

Michigan enacted a state earned income tax credit in 2006 that becomes effective during the 2008 tax season. Under the agreement, working families are eligible to receive a percentage of the federal EITC, starting with 10 percent for 2008 and increasing to up to 20 percent in 2009.

Michigan's Earned Income Tax Credit Initiative, started in 2003, spurred development of Volunteer Income Tax Assistance centers in 81 counties and helped spread information on ICAN! electronic filing services. There were 664,900 returns filed through volunteer sites in Michigan during the 2006 tax season. Also in the 2006 tax season, more than $1.2 billion in EITC returns were approved by the IRS and the average Michigan refund was $1,931.

"We know without a doubt that workers and their families spend Earned Income Tax Credit money in their communities - paying their bills and buying items for their families. This credit provides communities with a needed boost in consumer spending and - in turn - creates more jobs," said Lt. Gov. John D. Cherry Jr. "This day helps to raise the public's awareness that critical tax relief exists for working low-income families here in Michigan."

Michigan's Earned Income Tax Credit Initiative is a partnership involving the Office of the Governor, departments of Human Services, Treasury, Labor and Economic Growth, Internal Revenue Service, Accounting Aid Society, Michigan Association of CPAs, Michigan Community Action Agency Association, Michigan State University, and many local agencies and organizations. Oversight for the Statewide EITC Coalition, which leads the initiative, is a joint effort between Michigan Poverty Law Program, Michigan League for Human Services, and the C.S. Mott Group for sustainable Food Systems at Michigan State University.

For more information about the EITC filing or to find free tax preparation sites, go to www.michiganeic.org

For more information on Department of Human Service go to www.michigan.gov/dhs