From the Michigan Earned Income Tax Coalition www.michiganeic.org

Volunteer coalitions around the state this week and next will highlight the availability of free tax help to claim the important federal Earned Income Tax Credit, which can put hundreds of dollars back into working families’ household budgets in Michigan. Friday is EITC Awareness Day.

Activities will include a 10 a.m. Friday press conference at the Capitol Rotunda with events planned across the state from Detroit to Petoskey. (See the list of activities at the end of this release.)

“The EITC is a critical support to thousands of low- and moderate-income families in Michigan. Every year many eligible workers in Michigan fail to claim the EITC, leaving anywhere from $90 million to $190 million in federal tax relief on the table each year,’’ said Ross H. Yednock, coordinator of the Michigan Earned Income Tax Coalition and director of CEDAM’s Asset Building Policy Project.

 “This is why we want to highlight the efforts of Michigan’s many volunteer income tax assistance programs and sites so that Michigan families can keep more of their hard-earned dollars,’’ he added.

The Michigan EITC Coalition is made of statewide and local organizations and public agencies. It is committed to supporting work and reducing poverty for Michigan’s low- to moderate-income individuals and families through outreach on available tax credits and refunds, including the federal and state earned income tax credits.

The EITC Awareness Day activities provide alternatives for filers wishing to avoid commercial preparers and discourages the use of Refund Acceleration Loans, which carry a large fee and essentially act as a high-interest, short-term loans. Instead, IRS-trained volunteers are available to help low- and moderate-income households file their taxes for free. Visit www.michiganeic.org for a list of Volunteer Income Tax Assistance sites. Another alternative is using a free online service, www.icanefile.org.

In addition, filers are encouraged to go to their local post office or library to find the forms (or call 1-800-TAXFORM) and file themselves, saving hundreds of dollars.

The federal Earned Income Tax Credit has a strong bipartisan history and has been supported and expanded by presidents from Nixon to Obama. The state EITC was passed in 2006 and also enjoyed bipartisan support. A single parent of two children working full-time at minimum wage and earning $15,000 a year can get a state credit of about $1,000 and a federal credit of about $5,000. Those are dollars that are needed to help lower-income families make ends meet.

“The EITC helps hardworking families buy basic necessities and it boosts the vitality of small businesses in Michigan,’’ said Michigan League for Human Services President & CEO Gilda Z. Jacobs. “Studies have shown that there is a lot of bang for the buck as an economic stimulant because people who receive it spend it quickly.’’

The League produces an annual guide to tax credits called “Money Back in Michigan.’’

According to a study by the Brookings Institution, about 65 percent of filers in Michigan claiming a federal EITC use a commercial preparer and one in every four filers use a Refund Acceleration Loan to get a reduced tax credit immediately instead of waiting for the claim to be processed by the IRS.

For more information, visit www.MichiganEIC.org and “Money Back in Michigan” at www.milhs.org.

EITC Awareness Day: January 28, 2011
Statewide Event Listings

Northwest Michigan Tax Coalition
Super Saturday Special
Feb. 5
Traverse City
Contact: Karen Emerson, 231-947-3780

Click here for flyer

Project Connect
February 2
Petoskey

Click here for flyer

Wayne County Asset Building Coalition, Wayne Metro and United Way of Southeast Michigan
Jan. 28
Contact: Miryum Lulion, 734-284-6999

Click here for flyer 

Accounting Aid Society
10 a.m. Jan. 26
Ribbon-Cutting and Grand Opening of the Oakland Neighborhood Tax Center in Ferndale
Contact: Kathy Aro, 313-556-1920

Mayor Bing City of Detroit Tax Awareness Kick-off
2 p.m. Jan. 28
8634 West Vernor, Detroit
Press event to raise awareness of the EITC and other tax credits for Detroit residents.