New Michigan EITC Highlights Available Tax Relief
For the first time, Michigan taxpayers who claim the Federal Earned Income Tax Credit on their 2008 federal tax return are eligible to claim a Michigan Earned Income Tax Credit for 2008.
"Individuals who qualify for the Federal EITC will be able to claim a Michigan credit equal to 10 percent of their Federal credit," said State Treasurer Robert J. Kleine. "It is estimated that about 20 percent of those who qualify for the Federal EITC fail to claim it, and therefore miss out on tax savings."
The EITC is just one of several refundable tax credits available to Michigan taxpayers. Others include the Homestead Property Tax Credit and the Home Heating Credit. The Homestead Property Tax Credit acts as a circuit-breaker to ensure property taxes do not exceed 3.5 percent of household income. For senior citizens, it ensures that rent payments do not exceed 40 percent of their household income. The Home Heating Credit, which is filed separately from the MI-1040, assists low income taxpayers with their winter energy bills. The deadline for filing 2008 Home Heating Credits is September 30, 2009.
"It is important that Michigan taxpayers are aware of the different credits available to them," said Treasurer Kleine. "Properly claiming a Michigan Earned Income Tax Credit or Homestead Property Tax Credit can save taxpayers hundreds of dollars this year."
Information for all of the Michigan credits, including forms and instructions, is available at www.michigan.gov/incometax.
Treasury is also encouraging taxpayers to take advantage of the convenience and faster refunds associated with electronic filing (e-file). Taxpayers can access information about e-file, including free e-file opportunities, by visiting www.MIfastfile.org.
Michigan Income Tax returns are due April 15, 2009.