Who would want to go through the stress involved with filing a tax return if they, technically, don’t make enough money to be required to file a tax return? Why indeed?
But that logic only hurts you, if you qualify for the earned income tax credit. Low- and modest-income workers could miss out on hundreds or even thousands of dollars in a tax refund if they don’t file both a federal and a Michigan income tax return for 2023.
Michigan residents who qualify can get money through the earned income credit from both the state of Michigan and the federal government. There are two EITC credits — a main, larger credit that enriches a federal tax refund and a smaller but significant state of Michigan credit that boosts a state refund after filing a Michigan income tax return.
According to estimates from the Internal Revenue Service, one-third of those who qualify for federal earned income tax credit became eligible for the first time this year due to changes in their marital, parental or financial status.