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Michigan dept of Human Services, Area Community Services Employment and Training Council - Community Action Agency, Kent County Tax Credit Coalition, United Way's 2-1-1 for Heart of West Michigan United Way and DTE Energy promote tax credits

March 23, 2010

GRAND RAPIDS - Michigan taxpayers who claim the Earned Income Tax Credit (EITC) on their federal tax return are eligible to claim a Michigan EITC as well - one that's twice what it was last year - Michigan Department of Human Services acting director Nancy Marshall and partners said at an outreach event today.

"In these challenging economic times, earned income tax credits of up to $6,788 can make a big difference in the lives of low-income families who are struggling to make ends meet," Marshall said. "We strongly urge those who qualify to utilize this and other helpful resources."

Once claimed, EITC funds can be used to pay for utilities, car repairs, preventing eviction or foreclosure, building savings and assets or any other critical need.

Many low-income wage earners may also qualify for the Homestead Property Tax Credit and Home Heating Credit.

Marshall spoke at the Area Community Services Employment and Training Council - Community Action Agency (ASCET) office where DHS, in partnership with ASCET, the Kent County Tax Credit Coalition, United Way's 2-1-1 and DTE Energy, hosted an informational event to increase public awareness of the EITCs, Homestead Property Tax Credit and Home Heating Credit, and to encourage more Michigan residents to file for the credits.

"The EITC has no effect on certain assistance program benefits," Marshall said. "In most cases, EITC payments won't be used to determine eligibility for Medicaid, Supplemental Security Income, food assistance, low-income housing or most Temporary Assistance for Needy Families payments."

About 711,000 Michigan tax payers claimed the Michigan EITC for tax year 2008, State Treasurer Robert J. Kleine reported before the event.

"The average Michigan Earned Income Tax Credit for tax year 2008 was $204, or 10 percent of each taxpayer's federal credit," Kleine said. "That means more money back in each taxpayer's pocket. Eligible Michigan taxpayers will be able to claim a 20 percent Michigan credit on their 2009 Michigan tax return."

The Internal Revenue Service (IRS) estimates that 20 percent to 25 percent of eligible workers fail to claim the federal EITC. However, workers who missed filing in previous years can file an amended return to claim the credit, going back three years.

This year, with assistance from the United Way's 2-1-1 telephone system, free tax help from the Kent County Tax Credit Coalition and ACSET, and information from DTE Energy, low-income taxpayers can easily access helpful tax credit and tax preparation information.

"United Way's 2-1-1 receives hundreds of requests for Volunteer Income Tax Assistance sites," United Way's 2-1-1 Director Robert McKown said. "We also often find the Earned Income Tax Credits and the other credits provide solutions for our clients struggling with car repairs utility bills or other financial problems."

The Kent County Tax Credit Coalition's mission is to help families and individuals become financially self-sufficient at tax time and beyond, said Brenda Brame, the coalition's program manager.

"We do this by increasing the amount of federal and state credits brought back to low- and moderate-income families and individuals in Kent County, through an efficient and free tax preparation process," Brame said. "We also offer financial literacy courses free of charge to everyone that takes advantage of our services."

ACSET will provide free tax assistance through June 30 at three of its neighborhood centers, West Side Complex, North East Complex, and the new South East Complex located in the new Kent County Human Service Complex at 121 Franklin St. SE.

Their new location at Franklin Street provides a unique tax collaborative involving the Kent County DHS, Davenport University staff and student volunteers, and ACSET. This tax site is open for free tax assistance to qualifying individuals five days a week, from 9 a.m. to 4 p.m. and Monday evenings until 7 p.m. Calling 2-1-1 for an appointment is recommended but walk-ins are welcome.

"Clients receiving tax assistance through ACSET centers may also be eligible for other services that ACSET offers - such as heating assistance, food assistance, employment and training services, and senior services," said Karen Tolan, associate director for the Community Action Program Unit of ACSET.

DTE Energy encourages customers to file for the Home Heating Credit, a state energy credit that is applied to a utility bill to offset the costs of natural gas used to heat homes in the winter.

"DTE Energy wants to ensure that its customers are aware of all opportunities that will help them meet their utility needs in these very difficult times," said Reyna Martinez, supervisor of the DTE Energy Customer Business Office in Grand Rapids.

For more information on the tax credits, visit www.michiganeic.org or dial 2-1-1. For more information about DHS, please visit www.michigan.gov/dhs. Follow DHS on Twitter @MichiganDHS or become a fan at www.facebook.com/MichiganDHS.