Earned Income Tax Credit

The Earned Income Tax Credit (EITC) provides a tax credit to working people with low to moderate income.  Qualifying individuals receive a cash lump-sum payment (via direct deposit or paper check) at tax time.  This year, changes to EITC eligibility rules mean more people qualify than before.  Specifically, the income limits and amount of the credit have increased significantly for individuals and married couples without children. 

To claim your credit, you must file a tax return, even if you do not owe any tax or are not otherwise required to file. If you worked full or part time in 2021, you may qualify for the credit.   

Who Qualifies? 

You must have earned income (from working) in 2021 to qualify. The income limit to qualify and the amount of the credit varies depending on your tax filing status and number of children in your household. The table below shows the combined federal and state of Michigan EITC credit amount for each situation.

Qualifying children can include your biological children, adopted children, grandchildren, younger siblings, and nieces and nephews. To qualify, children must live with you at least half of the year and be under age 19, be under 24 and a full time student, or be permanently disabled.

 

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