Michigan joins other states that have enacted state-level earned income tax
credits.
The Michigan Earned Income Tax Credit (EITC) is a new refundable credit that
is available beginning with tax year 2008. The Michigan EITC will provide
additional money to those who qualify under the federal EITC guidelines. The
credit is 10 percent of the federal EITC amount for tax year 2008 and increases
to 20 percent of the federal EITC for tax year 2009 and future years.
In order to qualify for the EITC, you must meet the following rules set by
the Internal Revenue Service (IRS):
- Have a valid Social Security number
- Have earned income from employment or self-employment
- Filing status cannot be married, filing separately
- Be a U.S. Citizen or resident alien all year, or a nonresident alien
married to a U.S. citizen or resident alien filing a joint return
- Cannot be the qualifying child of another person
- Individuals with low wages who do not have a child might be able to claim
this credit. 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 qualify as a dependent of another person
- Cannot file federal form 2555 or 2555-EZ (related to foreign earned
income)
- Investment income must be $2,950 or less for tax year 2008.
In order to claim the Michigan EITC you must complete and file a federal 1040
and be eligible to claim the federal EITC even if you are not required to file a
federal or Michigan return. After you have determined your federal EITC,
complete and file a Michigan form MI-1040. Enter the amount from federal form
1040, line 64a on the MI-1040 page 2, line 31a and enter 10 percent of the
federal EITC on line 31b.
IRS - EITC Qualifying Information
Note:
If you use tax preparation software to prepare your tax return, the software
will assist you with determining or claiming the EITC.
Choose e-file
and get your refund fast!
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