What is the Earned Income Tax Credit?
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:
- $45,060 ($50,270 married filing jointly) with three or more qualifying children
- $41,952 ($47,162 married filing jointly) with two qualifying children
- $36,920 ($42,130 married filing jointly) with one qualifying child
- $13,980 ($19,190 married filing jointly) with no qualifying children
Tax Year 2012 maximum credit:
- $5,891 with three or more qualifying children
- $5,236 with two qualifying children
- $3,169 with one qualifying child
- $475 with no qualifying children
Investment income must be $3,200 or less for the year.
(Source: Internal Revenue Service website)
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. Check back in January for a link 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.
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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.
