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The Earned Income Tax Credit (EITC)

The Tax Season is here, and many workers are eligible for the Earned Income Tax Credit or EITC. The EITC is a federal tax credit for eligible working individuals and households.

You must have earned income to apply for the EITC. Households that qualify for the EITC could receive a tax credit refund of up to $4,700

Who qualifies for the EITC?

• Families with one child who earn less than $33,241 in 2007 (or less than $35,241 for married workers) are eligible for a credit of up to $2,853.
• Families with two or more children who earn less than $37,783 in 2007 (or less than $39,783 for married workers) are eligible for a credit of up to $4,716.
• Workers without a qualifying child who earn less than $12,590 in 2006 (or less than $14,590 for married workers) are eligible for a credit of up to $428.

How do Michigan Workers claim the EITC?

This credit is available by completing Schedule EIC in the Federal 1040 or 1040A. Free tax preparation services for EITC eligible tax payers are available. Volunteer Income Assistance, or VITA, program provides IRS-trained volunteers to prepare and file tax returns for free. Also Credit unions are offering a web-based, self-preparation service called I-CAN! eFile. Written at a fifth-grade level, ICAN! eFile allows eligible tax payers to complete and e-file their federal and state tax returns on their own and for free.

Free Tax Preparation Services:

• ICAN! eFile free file is available anyplace you can get on the internet .  Click on ICAN!_eFile for more information about using this free web-based tax preparation program.
• IRS-approved volunteer tax preparation services may be available in your community. Click here for a list of free tax preparation sites by county in Michigan or call 2-1-1 (800-552-1183 if 2-1-1 unavailable in your area) for help locating the VITA site nearest you.