As Michiganders start filing their federal and state income taxes, we wanted to spread the news on how the Earned Income Tax Credit (EITC) works to help Michigan residents make ends meet and support our local economies.
1. What is the EITC?
The EITC is one of the most effective federal and state income tax credits that helps working families make ends meet and afford their basic needs. Michigan supplements the federal EITC with a state-level credit equal to 30% of the federal credit. It can be used to reduce any income tax owed, but because it is fully refundable, families that do not owe any federal or state income tax can still benefit and receive a refund.
During 2024, 665,000 Michigan residents claimed and received both the state EITC and the federal EITC, resulting in an average tax credit of $3,856. However, the Internal Revenue Service (IRS) estimates that nearly 20% of Michiganders who qualify for the EITC don’t take it up. This means that 150,000-170,000 Michigan residents miss out on this significant source of income.
2. Who is eligible for the EITC?
Michigan residents who work but have low to moderate incomes are eligible for the federal and state EITCs. Eligibility and federal credit amount is determined based on earnings, marital/filing status, the number of children, and age (for workers without children). The state credit is calculated at 30% of the claimant’s federal credit amount.
3. What are the benefits of the Earned Income Tax Credit?
The EITC helps workers make ends meet, allowing them to keep up with the rising cost of essentials like groceries, transportation and child care while remaining in the workforce. It also helps families pay down debt, or allows them to build assets and save for the future, such as for emergencies or a child’s college education. There are no strings attached to the EITC and families have the autonomy to spend it as they wish.
The EITC has positive, long-lasting effects for children, including better health, higher test scores and increased earnings in adulthood.
The EITC has a direct benefit on local economies, as families that receive the credit tend to use it in the communities in which they live or work. These are dollars spent at local car repair shops, hardware stores, grocery stores, gas stations, child care centers and clothing stores. The EITC and other tax credits alike have amazing spillover effects.
4. How can we improve the EITC?
The EITC is one of the hardest working tax credits that help workers with low to moderate incomes. Michigan recently quintupled its state credit, from 6% to 30%, but doing so brought to light major gaps in both the federal and state credits, notably its exclusion of young workers (under the age of 25) not raising children, individuals over the age of 64 who still work, and Michigan residents that file with an Individual Taxation Identification Number (ITIN). While it would be easier if the federal credit were expanded to include these hardworking, taxpaying Michigan residents, the state can do so on its own, following the footsteps of states that have already done so, such as California, New Mexico, Minnesota and Vermont.
5. What are some resources for EITC filers?
Families with low to moderate incomes should also avoid using predatory tax preparers that offer fast refunds at a cost. Instead, please use trusted, high-quality Volunteer Income Tax Assistance providers for tax preparation help.
January 26, 2026 is the start of tax filing season, and the IRS and the Michigan Department of Treasury will start accepting federal and state income tax returns on this date. Taxpayers have until April 15, 2026 to file returns.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
