Local groups offer free tax help to claim credits
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Mayor Mary Sheffield and philanthropic groups are asking Detroiters to schedule free tax preparation appointments to claim tax credits.
Why it matters: Thousands of residents are eligible, but may not be claiming what is, essentially, free money that could help make ends meet.
State of play: Local organizations United Way for Southeastern Michigan, the Accounting Aid Society and Wayne Metro are providing free tax assistance. Last year they filed more than 26,000 returns.
- Residents of Wayne, Oakland, Macomb and Washtenaw counties making under $69,000 a year can schedule appointments online or call 211.
- The city and state are also coordinating texts sent to likely candidates.
What they're saying: "My administration is intensely focused on getting more Detroit families and children out of poverty and making sure they receive the valuable tax credits is a very easy way to do that," Sheffield said in a news release.
The earned income tax credit applies to those with earnings from a job that's below a certain income level. Depending how much the person owes, it will reduce the amount owed or result in a refund, per Michigan Legal Help.
- Qualifying depends on various factors — for example, having an income below $19,104 with no children, or $50,434 with one child.
- If you qualify for the federal tax credit, you can claim that plus the Michigan credit, which is 30% of the federal credit.
The child tax credit is a break worth up to $2,200 per child for those with qualifying dependents.
Zoom out: These tax credits are an "underutilized tool" against poverty, according to the National League of Cities.
- In 2024, the earned income tax credit lifted more than 4 million people nationwide above the poverty line, per census data reported by the Center on Budget and Policy Priorities.
What's next: The deadline to file is April 15, and the city notes that even residents who don't typically file taxes or earn much may qualify for these credits.