DETROIT - This year, for the first time, Michigan taxpayers who claim the federal Earned Income Tax Credit (EITC) on their federal tax return are eligible to claim a Michigan Earned Income Tax Credit as well.

Michigan Department of Human Services Director Ismael Ahmed was in Detroit Wednesday to spread the word.

"In these challenging economic times, a credit of up to $4,716 can make a big difference in the lives of low-income families who are struggling to make ends meet. We strongly urge those who qualify to utilize this helpful resource," Ahmed said.

Once claimed, EITC funds can be used to pay for utilities, car repairs, preventing eviction or foreclosure, building savings and assets or any other critical need.

Ahmed spoke at the Focus Hope Center for Advanced Technologies where the DHS, in partnership with the United Way of Southeastern Michigan 2-1-1, hosted an informational event to increase public awareness of the EITC and to encourage more Michigan residents to file for the federal and state credits.

"The credit has no effect on certain welfare benefits," Ahmed said. "In most cases, EITC payments won't be used to determine eligibility for Medicaid, Supplemental Security Income, Food Assistance, low-income housing or most Temporary Assistance for Needy Families payments."

Michigan 2-1-1 Director Sherry Miller indicated that in 2008 more than 8,000 people called 2-1-1 to be prescreened for eligibility for the EITC and to be referred to free tax preparation sites.

"Low-income Michigan wage-earners need to claim their entire EITC and can do so by using free community tax preparation sites," Miller said.

Callers this year will also be referred to local asset building programs to find help on long-term strategies for financial stability.

Last year, as many as 25 percent of eligible workers failed to claim the federal credit. This year, with assistance from the 2-1-1 telephone system, taxpayers can easily access helpful EITC and tax preparation information.

Michigan 2-1-1 connects people with information and resources to build healthy, safe communities. 2-1-1 currently operates in Calhoun, Clinton, Eaton, Ingham, Hillsdale Kalamazoo, Kent, Jackson, Lenawee, Livingston, Macomb, Mason, Monroe, Muskegon, Oakland, Oceana, Ottawa, St. Joseph, Washtenaw and Wayne counties, as well as the entire Upper Peninsula. For those who live in areas not served by 2-1-1, a toll-free number is available at 800-522-1183.