Northwest Wayne News

Deputy Mayor Todd Bettison and a coalition of community partners have launched a campaign to encourage all Detroiters to claim every dollar of federal and state tax credits available to them. Last year, thousands of Detroit families took advantage of the Earned Income Tax Credit (EITC) and Child Tax Credit, bringing millions of dollars into their households. This year, thanks to new legislation passed in 2023, even more money is available in state credits, with the Michigan EITC increasing five-fold.

The coalition, which includes Accounting Aid Society, United Way for Southeastern Michigan, Wayne Metropolitan Community Action Agency, and Community Development Advocates of Detroit, outlined their efforts to urge residents to claim their tax credits at the launch of the 2024 income tax season. Deputy Mayor Bettison emphasized the importance of filing tax returns to ensure that Detroit residents receive all the money owed to them, stating, "It’s easy and free for most Detroiters, residents can call and make an appointment today, so they don’t leave money unclaimed."

In 2023, Detroiters claimed over $330 million in EITC refunds alone for the 2022 tax year, in addition to millions more in Child Tax Credits. This is a significant improvement compared to previous years when eligible Detroiters left an estimated $80 million of potential tax refunds unclaimed annually. The coalition aims to continue this momentum by reaching out to those at the greatest risk of missing out, including first-time parents, non-traditional families, low-income families, and families with limited English proficiency or limited access to social services.

To qualify for the Earned Income Tax Credit, individuals and families must meet certain income requirements. The amount of the refund depends on income, filing status, and the number of qualifying children claimed on tax returns. For example, a single individual with no children who works and makes less than $17,640 could receive up to $780. On the other hand, a married couple with three or more children and a combined income of less than $63,398 could receive the maximum EITC of $9,659 between the federal and state credits.

The Michigan EITC uses the same eligibility criteria as the federal EITC, and thanks to new legislation, the Michigan credit has been increased to 30% of the federal credit. This means that Detroiters who qualify for a $3,000 federal EITC refund will now receive an additional $900 from the state of Michigan. For those who filed taxes in 2023 for the 2022 tax year and qualified for the EITC, additional refunds will be issued in early 2024. These payments will be delivered by paper check to the address on file with the state Treasury.

In addition to the EITC, Detroit families may also be eligible for the Child Tax Credit, which provides $1,500 to $2,000 per qualifying child. To be eligible, children must be under the age of 17, have earned at least $2,500 from working in 2023, and have a valid Social Security Number.

To ensure that all Detroiters have access to expert tax preparation, residents with an income of less than $64,000 can schedule an appointment at no cost. Accounting Aid Society and Wayne Metro will offer primarily in-person tax preparation services, with drop-and-go and virtual appointments also available.

The coalition is working tirelessly to spread the word about these tax credits, especially to those who may be at risk of missing out. Community-based organizations are conducting in-person outreach at community events and distributing flyers at various locations to reach families with limited resources and connections to social services. The efforts of the coalition are supported by funding partners such as the Kresge Foundation and Ballmer Group.

United Way for Southeastern Michigan, through its extensive network of community resources, is leading the coalition in ensuring that Detroiters are connected to the help they need. Jeff Miles, Vice President for Community Impact at United Way, highlighted the importance of these tax credits in providing a financial boost to families and helping them meet basic needs.

Thousands of Detroiters have already scheduled their appointments for tax help by calling 2-1-1 or visiting GetTheTaxFacts.org. Deputy Mayor Bettison and the coalition are urging all eligible residents to take advantage of these tax credits and claim the money owed to them.