Michigan Earned Income Tax Credit for Working Families

The Michigan Earned Income Tax Credit for Working Families (Michigan EITC) is a tax benefit for working individuals with income below a certain level. The Michigan tax credit is similar to the federal Earned Income Tax Credit (federal EITC).

Public Act 4 of 2023 expanded the Michigan EITC from 6% of the federal EITC to 30% (see Michigan Compiled Law 206.272). This credit expansion is retroactive to the 2022 tax year.

Get money back on taxes you’ve already paid! A tax credit usually means more money in your pocket because it reduces the amount of tax you owe.

Even if you do not owe tax, both the Michigan EITC and the federal EITC could lead to a tax refund! This extra income can help Michiganders care for their families, meet living expenses, or save for a rainy day.

Your eligible credit amount depends on several factors – including your income, filing status, number of “qualifying children”, and/or if you are disabled. The maximum Michigan EITC is 30% of the federal EITC maximum - which is adjusted yearly for inflation. The table below lists the maximum Michigan EITC amounts by tax year.

To claim the Michigan EITC for Working Families, you must have “earned income” – that is taxable earnings and wages you get by working for someone else or by working for yourself/owning a business/operating a farm.

AND Verify your federal EITC eligibility;

• If you qualify for the federal EITC, you qualify for the Michigan EITC if: 
  1. you are a Michigan resident or part-year resident. You do not need positive Michigan taxable income to qualify, or 
  2. you are a nonresident and you have taxable Michigan income.
• Use the IRS’ Qualification Assistant to verify your federal EITC eligibility. The federal EITC Qualification Assistant is available in English and Spanish.
• If you do not qualify for the federal EITC, you do not qualify for the Michigan EITC.

AND file your federal income tax return with the IRS.

• You must file, even if you do not owe tax or are otherwise not required to file.
• You must claim the federal EITC. 

AND file the Michigan individual income Tax Return (MI-1040).

• You must file, even if you do not owe tax or are otherwise not required to file.
• You must claim the Michigan EITC. 

The expanded Michigan EITC is retroactive to the 2022 tax year (last tax season) but the law change did not take effect when it was passed. The law took effect on February 13, 2024 and Treasury is committed to helping qualified filers receive the full credit. 

Tax Year 2022 (January 1, 2022 – December 31, 2022; due April 18, 2023)

Federally eligible individuals who claimed the Michigan EITC on their 2022 MI-1040 received the original 6% credit. You can verify whether you claimed the EITC by referencing your records. Retrieve your copy of the 2022 MI-1040 you filed; line 27a reports the amount from your federal return and line 27b reports the Michigan credit. 

Between tax year 2022 and tax year 2023, Treasury worked returns impacted by the Michigan EITC expansion and systematically prepared to release separate, paper check payments to eligible 2022 Michigan EITC claimants once the expansion took the effect of law. These checks may arrive as early as February 13, 2024 and will include a letter explaining that the check is the remaining 24% portion of the 2022 Michigan EITC which was expanded due to a recent law change.

On each tax return you provide your current address. Treasury uses this information to automatically update the mailing address we have on file for you. If you moved between tax filings, Treasury may have an incorrect address on file for you. Visit michigan.gov/2022eitc for guidance on address updates related to the supplemental check payments.

Do not file an amended 2022 individual income tax return in an attempt to change your address or claim the increased Michigan EITC. If you did not file the 2022 MI-1040 but were eligible for the Michigan EITC, you have 4 years from the original due date to file and claim it.

Tax Year 2023 (January 1, 2023 – December 31 2023; due April 15, 2024)

Michigan’s 2023 tax return, forms, and instructions (e-file and paper format) reflect the expanded Michigan EITC created in the new law. Although the law will not take effect until February 13, 2024, Michigan EITC eligible individuals should not delay in filing their tax year 2023 return and claiming the expanded credit. Treasury will work impacted returns as they are received and prepare them for release as soon as the law takes effect.

You are responsible for what’s on your tax return - even when someone else prepares it for you. You should interview and choose a tax preparer carefully. If you pay someone to prepare your tax return, the preparer must sign it and enter their Preparer Tax Identification Number. Don’t ever sign a blank tax return. Find out how to work with a tax preparer to claim the EITC. Find local, free, trained volunteer tax preparers at MichiganFreeTaxHelp.org.

The IRS's Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax return preparation to qualified individuals. Generally, you can get this help from VITA/TCE if any of the following are true: 

• Your income is $60,000 or less 
• You are a person with a disability 
• You speak limited or no English 
• You are age 60 or older 

A majority of the TCE sites are operated by the AARP Foundation's Tax Aide program.  AARP Tax-Aide sites do not have income or age restrictions but will only prepare basic returns. Visit Free Tax Preparation for Qualifying Taxpayers for more information, to find a site near you, or prepare for a tax appointment.

In addition, the federal government offers free, electronic tax support to individuals with modest income. Through the Free File Alliance, (a partnership between the IRS and a group of private-sector tax preparation companies), free online tax preparation and electronic filing through services are available exclusively through the IRS website. This IRS Free File allows for no cost filing of your federal income tax return online using guided tax preparation software. Browse the list of providers to find a service that includes the federal EITC filing as well as free filing of a state income tax return.