The Earned Income Credit (EITC) is available to low- and moderate-income married or single workers (with or without children) who meet the income requirements. You may qualify if you worked full- or part-time in 2001. Even if you don’t owe income tax you may be able to get the credit. Eligible workers may get up to a maximum of $4,008 depending on circumstances. Workers raising children in 2001 must file Form 1040 or 1040A and must attach schedule EITC. Workers not raising children can file any tax form.

Extra credit for you if you earned more than $10,000. Many families may now qualify for the Child Tax Credit – up to $600 for each dependent child under age 17. See the instructions for form 1040 or 1040Aand attach Form 8812.

A federal tax benefit designed to assist families with the cost of care for children or other dependent relatives. Eligible families will receive a credit worth between 20% and 30%of these expenses, depending upon income. Attach federal Form 2441 to Form 1040 or 1040A Schedule 2.

A deduction for Michigan taxpayers who are raising children. Taxpayers who claim children as dependents on their federal income tax form qualify if the children are under age 18 as of December 31, 2001. A deduction of $600 can be claimed for each child in this age group whom you claim as an exemption. Families must fill out a MI-1040 income tax form.

A state benefit that is available to eligible Michigan residents who pay high property taxes in relation to their income. You may qualify if your place of residence is in Michigan, you have lived in Michigan for at least 6 months in 2000, you pay property taxes or rent on your Michigan homestead, and your income is below $82,650. The amount of the credit depends on your income, with a maximum of $1,200. Applicants must use Form MI-1040CR.

This is a benefit available to eligible low-income senior citizens who pay for the cost of their prescription drugs. Michigan residents who turned 65 on or before December 31, 2001 may file if their income does not exceed $12,885 for a single filer or $17,415 for a joint return. Out-of-pocket drug expenses must be more than 5% of your household income. A maximum credit of $600 for a single filer or $1200 for a joint return is possible. File Form MI-1040CR-9 prior to June 3, 2002.

A state benefit available to eligible how-income households to help offset the cost of heating their homes. You may qualify if you own or rent a homestead in Michigan and your income is below the income limit. This credit is based on 1) household income, 2) number of exemptions claimed, and 3) the actual home heating costs. File Form MI-1040CR-7 prior to September 30, 2002.

For more information on these tax credits, visit this website: http://www.MiLhs.org/Media/EDocs/EITC_2002.pdf

For local sources of information call The Volunteer Center at (616) 382-8350.