As the tax filing season begins, residents who are eligible for the Earned Income Tax Credit are reminded that Michigan’s EITC was boosted in 2023.

Public Act 4 of 2023 expanded the Michigan EITC from 6% of the federal EITC to 30%.

This credit expansion is retroactive to the 2022 tax year. Even if you do not owe tax, both the Michigan EITC and the federal EITC could lead to a tax refund.

The maximum Michigan EITC is 30% of the federal EITC maximum — which is adjusted yearly for inflation. For 2024, the Michigan maximum credit is $2,349, according to the Michigan Department of Treasury.

For the 2023 tax year, more than 653,000 recipients received the Michigan EITC, with an average credit at $836.

To claim the Michigan EITC for Working Families, you must have “earned income” — that is taxable earnings and wages you get by working for someone else or by working for yourself/owning a business/operating a farm. If you do not qualify for the federal EITC, you do not qualify for the Michigan EITC.

You may claim the EITC if your income is low to moderate. The amount of your credit may change if you have children, dependents, are disabled or meet other criteria.

The Internal Revenue Service offers an EITC calculator at https://apps.irs.gov/app/eitc.

Individuals can file their state individual income tax return online, with a tax professional or by mailing in paper forms and documentation. State income tax returns and payment of any taxes owed are due April 15, the same as the federal deadline.

All employers are required to provide previous year income record forms — W-2s and 1099s — to their employees by today. End-of-the-year pay stubs should not be used when filing an income tax return because they are typically not an accurate reflection of all income received.

Taxpayers who rush to file without all the necessary paperwork will need to file an amended return later. Income tax returns filed without the required paperwork will be placed on hold for future processing and review.

State tax refunds are typically issued within four weeks from when the individual income tax return is received through efiling. Allow up to eight weeks for paper filed returns.

Michigan taxpayers who received retirement benefits have more options for the 2024 tax year. Over a four-year phase-in, which began last tax year, state law restores the pre-2012 retirement and pension subtraction for most taxpayers in Michigan beginning in 2026.

Retirees should consult a tax preparer for what options are best for their situation, state officials advise.

Individuals with low income, disabilities or are 60 years of age or older may qualify for free tax preparation help from IRS-certified volunteers. For information about free tax help, go to irs.treasury.gov/freetaxprep or dial 2-1-1.

For more information about e-filing, go to www.mifastfile.org.

Additional free tax help can be found at www.michiganfreetaxhelp.org.

To learn more about Michigan’s individual income tax, go to www.michigan.gov/incometax.