The Earned Income Tax Credit (EITC) provides great economic benefit to low-income workers and local economies across the state. For individuals and families, the EITC provides financial opportunity in this disastrous economic climate. EITC refunds can make the difference for staving off foreclosure or providing the basics for a decent life, like paying utilities and buying food. Every year, federal EITC refunds bring in over $1 billion to Michigan. Much of this is spent directly in local economies; for every $1 in EITC refund received, $1.67 is spent back in the recipient’s local economy.
Volunteers and organizations across the state have helped connect qualified Michigan workers with the EITC through efforts in financial education and asset building, free tax preparation, and outreach about tax laws and benefits. However, there are still more taxpayers to be reached. To further outreach efforts, the IRS is holding an EITC Awareness Day today, Friday, January 29, 2010. The event represents an outstanding opportunity to reach out and involve the entire community, and the State, in celebrating and publicizing what has been called the working person’s best work incentive and antipoverty program. Please visit the EITC Awareness Day Webpage to learn more.
For more information about the EITC please reference:
- The Michigan Statewide EITC Coalition
- Michigan Department of Treasury EITC Page
- Federal EITC Homepage
- Economic Benefits of the Earned Income Tax Credit in Michigan, 2009 Report from Anderson Economic Group [657KB PDF]
- The Michigan League for Human Services recently published Money Back in Michigan, a guide to the EITC and other tax credits Michigan residents may be eligible for