February 2002 – for immediate release A campaign is underway to increase the local awareness and use of the Earned Income Tax Credit (EITC). These tax credits can significantly increase the financial resources available to targeted households by decreasing the tax burden and/or by increasing refunds to the taxpayer. The EITC is refundable; that means a household can receive a tax refund even if it pays no income taxes. For example, a family raising more than one child in their home in 2001, with earned income less than $32,121, could get a tax credit up to a maximum of $4,008.

The awareness campaign is also promoting that low-income individuals can benefit from a variety of federal and state tax credits in addition to the EITC. Another federal tax credit is the Child Tax Credit. Michigan tax credits include the Home Heating Tax Credit, the Homestead Property Tax Credit, the Senior Prescription Drug Credit and a new child deduction. These credits are available to those who file income tax returns as well as those who are exempt from filing requirements. In addition, some credits are retroactive and can be claimed after the normal income tax filing deadline of April 15.

Since many workers find filing tax returns confusing and difficult, and a majority end up paying someone to do it for them, this initiative is expanding the number of free tax preparation programs. In addition to the existing sites at the AARP

- End -