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About the Earned Income Tax Credit (EITC)

Many workers and their families are eligible for the Earned Income Tax Credit (EITC). There is both a federal EITC and a state EITC, so be sure to claim both! Your state credit is equal to 6 percent of your federal credit for Tax Year 2012.

EITC Eligibility Information for Tax Year 2012

The income eligibility guidelines and maximum credit amounts for Tax Year 2012 are listed below:

  • Families with one qualifying child who earn less than $36,920 in 2012 (or less than $42,130 for married workers filing jointly) are eligible for a credit of up to $3,169.
  • Families with two qualifying children who earn less than $41,952 in 2012 (or less than $47,162 for married workers filing jointly) are eligible for a credit of up to $5,236.
  • Families with three or more qualifying children who earn less than $45,060 in 2012 (or less than $50,270 for married workers filing jointly) are eligible for a credit of up to $5,891.
  • Workers without a qualifying child who earn less than $13,980 in 2012 (or less than $19,190 for married workers filing jointly) are eligible for a credit of up to $475.

 For everyone, investment income must be $3,200 or less for the year.

How can I claim the two earned income credits?

The federal credit is available by completing Schedule EIC in the Federal 1040 or 1040A. The state credit is computed by entering your federal credit amount into your MI-1040 tax form and then multiplying by 6%, so do your federal taxes first!

Don't pay to get your taxes done--file for free!

  • The Volunteer Income Tax Assistance program, or VITA, provides IRS-trained volunteers to prepare and file tax returns for free. There are probably VITA sites in your community. Click here to locate a free tax preparation site near you. (This list is updated as information becomes available, so check back often.) You can also call 2-1-1 (1-800-552-1183 if 2-1-1 is unavailable in your area) for help locating the VITA site nearest you.

  • Senior Citizens also have a number of AARP sponsored free Tax-Aide preparation sites available. To locate the one nearest you, visit the AARP Tax Site Locator.

Find Out More About Tax Credits for Michigan's Working Families

Money Back in Michigan This packet promotes awareness of various federal and state tax credits available to low- and moderate-income households. It is designed to assist organizations that serve low-income individuals and families by providing timely information about credits for which they may qualify. The flyers can be distributed or displayed in local offices, libraries, community centers, and retail businesses. 

Fact Sheet on the Michigan Earned Income Tax Credit (Michigan League for Public Policy, rev. Jan. 2008)

Introducing the Michigan Earned Income Tax Credit (Michigan Department of Treasury, June 2008)

 
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