Taking credit: League offers new tax advice
LANSING – With “Tax Day”, April 15, fast approaching, a new guide released by the Michigan League for Public Policy urges low- and moderate-income Michigan households to file for all available credits this tax season. The 2013 edition of Money Back in Michigan outlines seven federal and state tax credits available to low- and moderate-income families.
The guide also encourages taxfilers to use free tax preparation services and skip expensive “rapid refund” centers that can eat up a portion of the refunds.
“Not everyone is aware that they qualify for these credits, and that there is free help to file for them,’’ said MLPP President and CEO Gilda Z. Jacobs. “It’s important that working families get all of their tax credits due to them. That tax refund can make a difference in their lives.’’
Among the credits are the federal Earned Income Tax Credit and the Michigan Earned Income Tax Credit, aimed at offsetting taxes paid by lower-income working families. A single parent of two children who earned less than $42,000 qualifies for as much as $5,550 in state and federal Earned Income Tax Credits, depending on income.
This year, the state credit is six percent of the federal EITC, dropping from 20 percent in the previous tax year. Also reduced, with new income and home value limits, is the Homestead Property Tax Credit. In addition, the $600 per child state child tax exemption was eliminated. The reductions are the result of the 2011 legislation that shifted income taxes from businesses to individuals.
The Money Back in Michigan packet also encourages tax-filers to use IRS-trained volunteers for help in filing taxes. Visit www.michiganfreetaxhelp.org, call 2-1- 1 or (800) 552-1183. or (800) TAXFORM.
Money Back in Michigan is available at www.mlpp.org