Just File it! Home > FAQs
What are the tax credits for the moderate to low-income?
The Earned Income Tax Credit, or EITC, is the most widely known federal tax credit for low-income wage earners. The EITC is refundable, meaning that a household can receive a tax refund above and beyond the household’s tax burden. A worker is also eligible even if no taxes are owed.
There are a variety of federal and state tax credits in addition to the EITC that can benefit low- to moderate-income individuals. Additional federal tax credits include the Child Tax Credit and the Federal Child and Dependent Care Credit. Michigan tax credits include the Home Heating Tax Credit, the Homestead Property Tax Credit, and the Child Deduction. These credits are available to those who file income tax returns and those who are exempt from filing requirements.
What is the Earned Income Tax Credit?
The EITC is a refundable federal tax credit for eligible taxpayers who work, but don’t earn high incomes. The EITC delivers billions of dollars to millions of low-income taxpayers—many of whom rely on the credit to lift them above the poverty line. To qualify, a taxpayer must meet certain rules and file a tax return, even if the taxpayer doesn’t owe any tax or didn’t earn enough money to require filing a return. If the taxpayer qualifies and claims the credit, they could pay less federal tax, no tax, or even get a tax refund.
Who is eligible to claim the EITC?
Filers must meet the following federal requirements:
- You must have a valid Social Security number
- You must have earned income from employment or from self-employment
- Your filing status cannot be married, filing separately
- You must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return
- You cannot be a qualifying child of another person
- If you do not have a qualifying child, you must:
- Be age 25 but under 65 at the end of the year
- Live in the United States for more than half the year, and
- Not quality as a dependent of another person
- Some other special rules may apply
EITC Income Limits
Filers must meet the following income limits. Earned income and adjusted gross income (AGI) must be less than:
- $36,348 ($38,348 married filing jointly) with two or more qualifying children
- $32,001 ($34,001 married filing jointly) with one qualifying child
- $12,120 ($14,120 married filing jointly) with no qualifying children
How much credit could a filer receive if they qualify for the EITC?
- $4,536 with two or more qualifying children;
- $2,747 with one qualifying child;
- $412 with no qualifying children
What do I need to use I-CAN!™ EITC?
Before using I-CAN!™ EITC, filers should have the following paperwork handy:
- Your Social Security number
- Your spouse’s and children’s names as they appear on the Social Security card and their Social Security numbers
- All forms that show the income you received in the past year. These may include:
- All W-2s from employment for you, your spouse and your children
- Bank statements which show interest earned on deposits
- 1098Ts which list educational expenses
- Your unemployment statements
- Child care information such as:
- Name, phone number and address of child care facility or individual
- Amount paid during the year for child care
- Federal taxpayer identification number or Social Security number of facility or individual
- Whether or not your employer pays part of the child care
What costs are involved?
There is no cost to file your taxes with the Just file it! program and I-CAN!™ E-File. The Michigan Credit Union League, a statewide credit union trade association, with the University of Michigan’s Michigan Poverty Law Program, has underwritten the cost of complementing the federal income tax program. The federal income tax component was developed three years ago by the Legal Aid Society in Orange County, California, and is free to all eligible filers.
What software is being used for this program?
It’s called I-CAN!™ EITC and it is a Web-based application. This means that you don’t have to install special software on your computer to use it. All that is needed to run the software is:
(1) a computer,
(2) connected to the Internet and
(3) a Web browser (Internet Explorer).
By clicking on the link participants will be taken to the I-CAN!™ E-file Web site to begin tax preparation and e-filing.
I-CAN!™ E-File is written at a fifth-grade literacy level, and is available in English or Spanish. It uses a video guide to read simple questions about finances and employment to the user. By answering the questions using a mouse and the keyboard, I-CAN!™ E-File completes income tax returns for anyone eligible for the federal EITC and on the state side, state tax credits. It is certified by the IRS and is available to anyone with access to the Internet at: www.icanefile.org.
Can anyone file taxes using this software?
You can generally use I-CAN!® E-file unless you or your employer have a non US address, own a business, are a church employee or clergy member, or sold real estate in 2007. If you are in the military or you are disabled you may be eligible for tax credits that are not included in I-CAN!® E-file.
Can filers e-file using the I-CAN!™ EITC Software?
If filers wish to e-file returns on the Internet instead of printing them out, they will need an e-mail address and password. If filers wish to have their refund directly deposited into a credit union or bank account, they need the routing number of the financial institution. You can obtain this by contacting your financial institution.
What if a filer cannot complete the process in one visit?
If a person starts the system and cannot complete the process at one sitting, they can leave the program and return to it later. The program will save everything previously entered and the filer can again access the return by using a password provided by the program.
How long will it take to complete the state and federal income tax filing process using this program?
On average it will take filers 1 ½ to 2 hours to complete both forms.
Why is the credit union community investing in this program?
Credit unions are investing in this program for three key reasons:
(1) Philosophy/Social Mission, (2) Reach, and (3) Resources.
Philosophy/Social Mission.
Credit unions are founded on the very principle of people helping people. Whether it’s referred to as philosophy or social mission, helping the underserved is at the very core of our industry’s existence. Many credit unions are already involved in assisting low-income filers in accessing federal tax credits, known as the Earned Income Tax Credit or EITC, mostly through local community partnerships with the IRS, United Way and others.
Reach. With some 400 main offices and hundreds more branches statewide, credit unions stretch all across Michigan.
Resources. Credit unions are not-for-profit financial institutions, ready and able to provide products and services to assist low-income families—whether deposit accounts, direct deposit or asset-building tools such as CDs. Credit unions can provide a direct link to low-income tax filers from refund to a path of home ownership, higher education, or simply a greater personal financial footing. |
