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What is the Michigan Earned Income Tax Credit?
The Michigan Earned Income Tax Credit will help orking families keep more of their paycheck. It will reward work, supplement low wages and help a segment of the state’s population that has not benefited from other recent tax measures. The Michigan EITC will go into effect in the filling season for the 2008 Tax Year.
The new tax credit is refundable. This means that each person claiming the credit receives the full amount of the credit even if ti exceeds the person’s tax liability. Some workers who are liable for no Michigan income tax at all (because their earnings are too low) will get a refund through this tax credit.
The Michigan earned income tax credit is based on the federal earned income tax credit. In Tax Year 2008, the first year that Michigan workers can receive the credit, their refund will be 10 percent of their federal EITC amount. In each year after that, it will be equal to 20 percent of the federal credit.
Because all families who are eligible for the federal credit will be eligible for the state credit, the new tax credit will put money into the pockets of hundreds of thousands of Michigan working families. Last year over 639,000 families in Michigan (approximately 14% of all families who filed taxes received the federal earned income credit.
The new Michigan EITC will bring more than $214 million into the economies of local communities throughout Michigan.
What is the Michigan Home Heating Credit?
The Home Heating Credit (HHC) is designed to assist low income families living in Michigan with the cost of heating their homes. The HHC is federal funding through the Low Income Home Energy Assistance Program (LIHEAP), U.S. Department of Health and Human Services. Under provisions set forth in the State Income Tax Act, the Department of Human Services (DHS) administers Michigan’s Energy Assistance programs, and the Michigan Department of Treasury processes the Home Heating Credit claim and issues payments.
What is the Michigan Homestead Property Tax Credit?
The Homestead Property Tax Credit is a state benefit available to eligible Michigan residents who pay high property taxes in relation to their income. Renters can use "Just File It!" to access this credit.
Homeowners wishing to claim the Michigan Homestead Property Tax Credit should seek the assistance of a qualified licensed accountant or contact a free tax prep site.
What is the State Child Deduction?
The State Child Deduction is a deduction for Michigan taxpayers raising children under 18 years of age.
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