We’ve put together data from each of Michigan’s 83 counties to show the impact that the Earned Income Tax Credit (EITC) has on our communities. Click on a county below to view the geographic fact sheet, and read on to learn more about how Michigan’s EITC helps families make ends meet.

The Earned Income Tax Credit gives a major boost to family budgets.

The EITC — a fully refundable federal and state income tax credit targeted to working families with low to moderate incomes — is one of the most effective anti-poverty programs in the United States with both short-term and long-term benefits.

In 2023, the state EITC (also called the Working Families Tax Credit) was increased from 6% of the federal credit to 30%, putting more money back into Michiganders’ pockets and the local economies of Michigan.

In 2024, 640,400 families statewide received an average state credit of $836.

Families who receive the EITC can use the credit for anything they may need — there are no strings attached. As the cost of living grows, budgeting decisions are all the more difficult to make, especially after the recent spike in inflation.

The EITC can also help reduce financial stress for families by providing a much-needed cushion. It can help provide a lifeline for unexpected costs, and it can also help pay for day-to-day expenses such as clothing, home repairs, gallons of gasoline or cartons of eggs.

The EITC helps workers of all races and ethnicities, but it’s especially impactful for Black, Latino, and Native American families, who are disproportionately represented in low-paying jobs due to discrimination embedded in institutions and policies that disadvantage certain groups. Plus, children of recipients are healthier, do better and go further in school, and earn more as adults.¹

The EITC can do so much more for Michiganders, though.

On average, 14% of Michigan taxpayers received the EITC, but this still leaves many people who are eligible to receive it. The Internal Revenue Service (IRS) estimates that only 80.2% of eligible Michigan families take up the EITC, which means that 150,000-160,000 Michiganders are missing out.² It’s critical that families be made aware that they can use this valuable credit.

Because Michigan relies on federal eligibility criteria, workers under age 25 or over age 64 without qualifying children do not receive a state credit. This age restriction leaves out some particularly vulnerable groups, including youth exiting foster care or who are homeless. Immigrant workers who work and pay taxes but do not have a Social Security Number are also excluded.

Michigan should expand eligibility for the state EITC to help families and workers who are currently excluded at the federal level. Learn more about why we should expand the credit’s reach.

END NOTES

Marr, Chuck, Chye-Ching Huang, Arloc Sherman, and Brandon Debot. 2015. “EITC and Child Tax Credit Promote Work, Reduce Poverty, and Support Children’s Development, Research Finds | Center on Budget and Policy Priorities.” Center on Budget and Policy Priorities. October 2015. https://www.cbpp.org/research/eitc-and-child-tax-credit-promote-work-reduce-poverty-and-support-childrens-development.
“EITC Participation Rate by States | Earned Income Tax Credit.” n.d. www.eitc.irs.gov. https://www.eitc.irs.gov/eitc-central/participation-rate-by-state/eitc-participation-rate-by-states.