Posts Tagged ‘eitc’

Show Me The Money!

Tuesday, January 24th, 2012

This Saturday, January 28, you are invited to receive free tax prep, learn how to be an extreme coupon-er, get free money to use for home repairs, be entered to win prizes and more at Show Me The Money Day events across the state. These events are absolutely free and designed to help you save money – so if you are interested (or know someone who might be), check the locations below:

Lansing - Downtown Capital Area District Library, 9:30 – 2:00

Flint - Courtland Center Mall, 10:30 – 2:00

Saginaw - 1st Congregational Church (403 S. Jefferson Avenue), 9:00 – 1:00

Battle Creek - Battle Creek Family YMCA, 10:00 – 3:00

Wayne County* - Wayne County Community College – Downriver Campus (Ray Mix Room), *THURSDAY, Jan. 26, 10:00 – 2:00

Show Me the Money Day events differ from place to place. To see what the event nearest you is offering, visit the Show Me the Money Day website.

Me? Do people’s taxes? Definitely not.

Tuesday, September 13th, 2011

Looking for a unique way to help out in your community? You should think about serving as a volunteer tax preparer this tax season!

Not only will you save families in your community a lot of money on tax preparation, you’ll help bring thousands of dedicated federal dollars to your local economy through take-up of tax credits by the clients you serve.

I know what you’re thinking, “Me? Do people’s taxes? Definitely not.” Even if you have some burning interest to figure out the forms, technical jargon, and other complexities of the U.S. tax code or just want to save money doing your own taxes, why would you choose to spend time completing returns from Feb. 1 – April 15 unless you’re getting (well) paid for it?

Funny as it may seem, doing taxes is pretty easy and even enjoyable, especially when you help people who are truly in need and may have been preyed upon in the past by high cost paid preparers. Volunteer tax preparers get to directly touch the lives of their neighbors, providing free assistance to help individuals and families make use of the tax benefits (like the refundable Earned Income Tax Credit) that they deserve.

When you hear about the things predatory preparers in Michigan will do (like charge upwards of 800% interest on a Refund Anticipation Loan) and find out how simple it is to help someone get the refund they deserve (by claiming tax credits like the EITC, home heating credit and the homestead property tax credit), the opportunity to serve as a volunteer preparer resonates as a truly impactful means of producing tangible benefits for your community.

Becoming a volunteer preparer builds skills you can use for the rest of your life (you will never have to pay someone to do your taxes again!) and looks great on a resume. You also get a chance to meet really cool people who, like you, want to be active and contributing members of their community. My first year as a tax preparer, I couldn’t believe how much fun the tax site became once I got to know the other preparers and experienced the camaraderie you find in a group of diverse people all coming together for a real purpose.

Check out the Michigan Earned Income Credit Coalition (MEIC) website to learn more about becoming a VITA volunteer preparer: www.michiganeic.org/. You can also call or email me to find out more.

Want to get started? To become a preparer, you must become IRS certified through an online or classroom training process. To check out the online training modules from the IRS go to: http://www.irs.gov/app/vita/. Contact your local VITA group to learn more about classroom training opportunities. You can find information on your local VITA program here.

This coming tax season, I hope you will join me and the hundreds of other volunteers across Michigan who provide such a valuable resource to their communities as volunteer tax preparers!

Megan Kursik, CEDAM, kursik@cedam.info; 517-485-3588 x1942

What’s Up With the Budget?

Tuesday, May 31st, 2011

[This post is from Ross H. Yednock, Director of the Asset Building Policy Project.]

A lot has happened in Lansing in the last month, all of which seems to deal with how we choose to fund state and local government.

The big news in the asset building world is that the Michigan Earned Income Tax Credit was preserved, albeit at a much lower rate (it will now be 6 percent of the federal EITC, as opposed to 20 percent). Other developments include the elimination of nearly all business and personal income tax credits and deductions, including brownfield and historic tax credits and credits for individual contributions to individual development accounts and charities. In addition to these major changes, Michigan businesses will no longer pay the Michigan Business Tax (some will pay a corporate income tax, but in all, businesses will pay $1.7 billion less in taxes next year) and retirees will now have their pensions taxed.

What does this all mean? I guess it depends on who you ask. Some argue this will create more jobs and stimulate the economy while others fear community development and asset building efforts will face greater challenges. One thing for sure is that the old way of doing things will change.

I do want to point out, however, that victories like the preservation of the Michigan EITC were a result of practitioners, advocates and recipients coming together to voice a coordinated message that explained the importance of policies that provide working families a hand up. Moving forward, we (CEDAM, you, me, all of us) will need to continue to communicate and stay informed if we are going to continue to help impact public policy and improve practices to help working families achieve sustainable financial security.

Free Tax Help – Plus, Do You Qualify for the Earned Income Tax Credit?

Monday, February 21st, 2011

Why pay for help with your taxes when you can get help for free? In this post you will find out if you qualify for the Michigan Earned Income Tax Credit (EITC) and get two options to save money this tax season.

Do I qualify for the EITC?

“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,” says Ross H. Yednock, coordinator of the Michigan Earned Income Tax Coalition. A single parent of two children working full-time at minimum wage and earning $15,000 a year can get a Michigan state income tax credit of about $1,000 and a federal credit of about $5,000.

The IRS has a free EITC calculator here that will show you if you can claim the EITC.

Ways to Save

  1. Use I-CAN! E-File (free online software) to file your federal and state of Michigan taxes. Click here to go to I-CAN! E-File.
  2. Have an IRS-trained volunteer prepare your state and federal tax return for free at a Michigan VITA site. Individuals who earn $44,000 or less qualify for this free help. Get a list of VITA site locations and learn what to bring with you here.

For additional resources please visit www.michiganeic.org.

Michigan Earned Income Tax Credit to be Eliminated Under House Plan

Monday, January 31st, 2011

[This EITC update is brought to you by Ross Yednock, Director of the Asset Building Policy Project at CEDAM.]

The House Republicans recently unveiled their legislative plan entitled Guiding Principles: Jobs, Reform, Responsible Leadership (PDF). The plan calls for, among other things, more transparency in government spending and contracts, cutting government worker benefits and pay, speeding up permit applications and reviewing current tax credits and exemptions.  Specifically, the plan calls for the elimination of the state Earned Income Tax Credit.

The Asset Building Policy Project (ABPP) at CEDAM joins the Michigan Catholic Conference, the Michigan League for Human Services and others in opposing the elimination of the state EITC.

The state EITC provides critical support for Michigan’s workings families striving to achieve self-sufficiency. It is not a “hand out” or “paying people not to work” as some lawmakers have said. Such comments are gross mischaracterizations of the state EITC and overlook its proven effectiveness in lifting families out of poverty by removing barriers to work and promoting financial independence. Moreover, comments that are at best inadvertently inaccurate, or at worst, deliberately deceitful, hinder real public debate and discourse on the important policy matters that will move Michigan forward.

The state EITC, along with the federal EITC, helps nearly 800,000 Michigan families every year offset the impact that payroll, sales, and other taxes has on their limited budgets. In addition to helping families, both the state and federal EITC provide an economic stimulus to local communities, as these refunds generate new economic activity and help local grocers, day care providers, retailers, banks, credit unions and more stay afloat and keep jobs in the community. Eliminating the state EITC two years since it took effect will hurt Michigan families and make it harder for all of Michigan to move forward.

The House Republican plan also calls for implementing a strict 48 month, lifetime limit for welfare recipients in Michigan. The exemptions to the 48 month, lifetime limit Michigan currently has in place mostly deal with “hardship” and the inability to find work despite looking. As state lawmakers look at this part of the House Republican proposal, the ABPP at CEDAM urges them to also eliminate asset limits for this program, as well. Such a policy discourages financial self-sufficiency and state workers could use the time and resources they spend determining if their client meets asset-tests to actually help their clients use their assets to achieve financial security.

To learn more about the state EITC: