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Earned Income Tax Credit

This year, Accounting Aid Society helped return more than $3.4 million in Earned Income Tax Credits (EITC) to low- and moderate-income working people in Wayne, Oakland, Macomb and Livingston counties.

Next tax season, we hope to increase that amount.

Accounting Aid Society provides the only free comprehensive tax assistance and counseling service of its kind for low-income neighbors in southeast Michigan. In 2008 we helped more than 12,500 southeast Michigan neighbors get back $864 on average in tax refunds and tax credits -- including the EITC.

For more details on our recent tax season, click here.

FAST FACTS: EARNED INCOME TAX CREDIT

• The new maximum credit is $4,536 for a family with two or more children; $2,747 for a family with one child and $412 if there are no children. 
• The new income limits are $36,348 ($38,348 if married filing jointly) for families with two or more children; $32,001 ($34,001 if married filing jointly) for families with one child or $12,120 ($14,120 if married filing jointly) if there are no children. Investment income must be $2,800 or less. Children must meet certain relationship and residency requirements. 
• Created in 1975, the Earned Income Tax Credit (EITC) helps offset Social Security taxes and provides an incentive for work. It is the federal government's largest benefits program for working families. 
• More than 60 percent of all tax returns claiming EITC are file during the month of February. 
• An estimated 20 percent more people may qualify for EITC but may not be aware of it. 
• The EITC is for people who work but don't earn a lot of money. The audience includes people with limited English skills, rural residents, Native Americans, people with disabilities and nontraditional families, such as a grandparent raising a grandchild.