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Who qualifies for Michigan earned income credit?

Published in Michigan Tax Credit 2 mins read

To qualify for the Michigan Earned Income Credit (EIC), taxpayers must first meet the eligibility requirements for the federal Earned Income Tax Credit (EITC). The Michigan EIC is a refundable tax credit designed to assist low to moderate-income working individuals and families. It generally mirrors the federal EITC qualifications, with the Michigan credit typically being a percentage of the federal amount received.

Key Qualification Criteria

Qualification for the Michigan EIC hinges on several factors, including your income level, filing status, and whether you have qualifying children.

Income Thresholds (2023 Tax Year)

One of the primary determinants for eligibility is your adjusted gross income (AGI) and earned income. For the 2023 tax year (for tax returns filed in early 2024), your income must be below the following levels to qualify for the federal EITC, and by extension, the Michigan EIC:

Number of Qualifying Children Income Limit (Single, Head of Household, or Widowed) Income Limit (Married Filing Jointly)
Three or more $56,838 $63,398
Two $52,918 $59,478
One $46,560 $53,120
None $17,640 $24,210

It's important to note that both your earned income and your adjusted gross income (AGI) must be within these limits.

Other Essential Requirements

Beyond income, other general requirements for the federal EITC, which apply to the Michigan EIC, include:

  • Earned Income: You must have earned income from employment or self-employment.
  • Valid Social Security Number (SSN): You and any qualifying children listed on your return must have a valid SSN.
  • Filing Status: You must use a filing status other than Married Filing Separately.
  • U.S. Citizen or Resident Alien: You must be a U.S. citizen or a resident alien all year.
  • Investment Income Limit: Your investment income must not exceed a certain amount (for 2023, this was $11,000).
  • Not a Qualifying Child of Another: You cannot be claimed as a qualifying child on someone else's tax return.
  • Age Requirements (for those without a qualifying child): If you don't have a qualifying child, you must be at least 25 but under 65 years old at the end of the tax year, and you cannot be a dependent of another person.

For more detailed information on the Earned Income Tax Credit and its specific requirements, you can refer to resources from Michigan Legal Help: The Earned Income Tax Credit.