The Earned Income Tax Credit

Building opportunity for Michigan’s Workers

Michigan Gets a Boosted Earned Income Tax Credit

Thanks to the hard work and dedication of advocates across the state, the Governor has signed into law an increase in Michigan Earned Income Tax Credit (EITC), letting workers and families keep more of their hard-earned income. An estimated 740,000 Michigan taxpayers will see a boost of $750 on average beginning in 2024. But the EITC could go further and help more Michiganders. Learn how here

The EITC increase will make a difference for workers and their families.

  • The EITC helps 740,000 households pay for basic needs. Workers use their EITC to pay for essentials like groceries, gas and child care. The EITC is an important way to help Michiganders cope with inflation.
  • Nearly one million kids will benefit. Research shows that as these kids grow up, they will be more likely to succeed in school, obtain a bachelor’s degree and earn higher incomes in their early working years.
  • The increase will benefit local businesses. Families receiving the EITC spend their credits in their communities, keeping money flowing in our communities and strengthening our local economies.

But there is still work to do…

Workers without children receive some of the lowest credits. The maximum federal credit for workers without child dependents is just $560, meaning the maximum Michigan credit for Tax Year 2022 was just $33–hardly enough to help workers pay for essentials or cope with inflation. 

Without action from the federal government, it is up to Michigan to expand eligibility at the state level to ensure workers without children can make ends meet. Expanding EITC eligibility to include workers age 18 and up without children would benefit over 143,000 Michiganders.

It’s time to take action:

  • Expand the Michigan EITC to include workers under 25 and over 65 without children.
  • Also expand Michigan’s EITC to include immigrants who work and pay taxes.
  • Provide funding for Michigan’s Volunteer Income Tax Assistance (VITA) sites to help reach more workers with low and moderate incomes access free tax prep services.

Learn more in our fact sheet  

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