January 22, 2010

The following is an editorial written by State Representative Barb Byrum (D-Onondaga). If you have questions about this commentary, please contact Rep. Byrum's office by calling (517) 373-0587.

Tax time is drawing near, and people across Michigan are struggling. As costs rise and we look to make every dollar count, it is more important than ever to find ways to hold on to more of our hard-earned money.

One way that you may be able to qualify for a large tax refund is by filing for the Earned Income Tax Credit (EITC), which is a refundable income tax credit available to help low- to middle-income families, especially those with children. Those eligible for the credit who file a federal tax return may get back some or all of the federal taxes that were taken out of their paychecks during the year. This can result in thousands of dollars in your pocket.

If you have no children and earned less than $13,440 in 2009, or less than $18,440 for married workers, you are eligible for a credit of up to $457. If you have children, the credit rises dramatically:

• • Families with one child who earned less than $35,363 in 2009, or less than $40,463 for married workers that file jointly, are eligible for a credit of up to $3,043.
  • Families with two children who earned less than $40,295 in 2009, or less than $45,295 for married workers that file jointly, are eligible for a credit of up to $5,028.
  • Families with three or more children that earned less than $43,279, or less than $48,279 if filing jointly, are eligible of a maximum credit of $5,657.

Michigan also has its own version of the EITC, which is equal to 20 percent of the credit you receive from your federal return. You must claim this credit on your MI-1040, not on your federal tax return.

The EITC is a great way for residents to get a little bit of extra cash in their pocket and provide some economic freedom. However, many who qualify for this tax credit do not know that it is available. Every year, millions of dollars go unclaimed – money that could go into our residents' pockets to put in the bank, pay bills, or stimulate our local economy by shopping at businesses in our community.

The EITC is a critical tool for helping families and fighting poverty, and is money that you have earned and deserve. At a time when it is difficult for many to purchase even basic necessities, this money can be a huge boost. For more information about the EITC, visit www.eitc.irs.gov. You can also contact me or my staff at (517) 373-0587, by e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by visiting my Web site, byrum.housedems.com, which contains a number of tips to help you save on your taxes.