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. Beginning the 2022 tax year, the credit amount  increased from 6% to up to 30% (see Michigan Compiled Law 206.272). The Michigan tax credit is similar to the federal Earned Income Tax Credit (federal EITC).

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.

The Michigan EITC provides tax credit up to $2,080. Your eligible credit amount depends on several factors – including your income, filing status, number of “qualifying children”, and/or if you are disabled.

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: 
    • you are a Michigan resident or part-year resident. You do not need positive Michigan taxable income to qualify. 
    • 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 Michigan EITC for Working Families tax credit expansion was enacted during the 2022 tax season, but the law has not yet taken effect. Therefore, federally eligible individuals who claim the Michigan EITC on their 2022 MI-1040 will receive the original 6% credit. Once it is known when the law takes effect, Treasury will systematically schedule supplemental check payments to issue the difference between the original credit and your eligible, expanded percentage. Do not file an amended return or try to claim the increased Michigan EITC on your 2022 individual income tax return.

We encourage filers to revisit this webpage for updates on the supplemental check timeframe . 

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.

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.