City of Detroit and partners launch campaign to help Detroiters claim millions in tax credits

2025
  • Detroiters received millions in tax credits through Earned Income Tax Credit and Child Tax Credit last year 
  • Increase to Michigan Earned Income Tax Credit means more money for residents this year
  • Hundreds of volunteers and staff will offer expert tax preparation at no cost to Detroiters
  • All the information you need available at getthetaxfacts.org


Today, the City of Detroit and a coalition of community partners announced this year’s push to encourage all Detroiters to access every dollar of federal and state tax credits by scheduling an appointment for no-cost expert tax preparation. Through last year’s coordinated outreach in the City of Detroit, thousands of Detroit families were able to take advantage of the Earned Income and Child Tax Credit, bringing millions into their homes. This year, even more money is available in state credits thanks to new legislation passed in 2023 which increased the Michigan EITC five-fold.

Mayor Duggan was joined by United Way for Southeastern Michigan, Accounting Aid Society, and Wayne Metropolitan Community Action Agency as they kicked off the 2025 income tax season today and outlined efforts to urge residents to claim their credits.

“Wealthy people tend to be the ones who get most of the tax breaks.  But the Earned Income Tax Credit and Child Care Tax Credit are the tax breaks for thousands of working Detroiters.” said Mayor Duggan. “By simply claiming these credits on their tax returns, they could be get thousands of their own dollars back from the federal government.  I encourage everyone who may be eligible to come in for free tax assistance.”

As a result of the coalition’s work in 2024, Detroiters claimed more than $450 million in EITC refunds alone for tax year 2023, plus many millions more in Child Tax Credits. Prior to 2017, EITC-eligible Detroiters left an estimated $80 million of potential tax refunds unclaimed each year.

There are several cash payments available to Detroit families, including the Earned Income Tax Credit and the Child Tax Credit, but you’ve got to file your taxes to claim these credits. Even if you don’t typically file your taxes or didn’t earn much in 2024, you may qualify for these payments.

Starting today, residents can call 2-1-1 or visit getthetaxfacts.org to learn more and schedule an appointment.

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EARNED INCOME TAX CREDIT – Who is eligible?

Created in 1975, the EITC turns 50 this year!  For 50 years, it has been providing much-needed extra cash to hard-working families.  The EITC is available to working families and individuals who meet certain income requirements.  There are actually two EITC credits – a main credit when you file your federal tax return, and an additional credit when you file your state of Michigan tax return.  This year is the second year of new state legislation in which the Michigan credit is worth 5 times what it used to be.  That means more money in Detroiters’ pockets.

If you worked at all in 2024, you may be eligible for the Earned Income Tax Credit. The Earned Income Tax Credit provides extra income to workers with low to moderate incomes, up to $67,000.  The amount of the refund depends on income, filing status, and number of qualifying children claimed on tax returns.  For example, a single individual with no children who works and makes less than $18,591 could get back as much as $822. A married couple with three or more children who files a joint return, with a combined income of less than $66,819 could receive the maximum EITC of $10,179 between the federal and state credits.

Adults and children must have a Social Security Number to apply for the EITC. 

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MICHIGAN EITC – 5X INCREASE

The Michigan EITC uses the same eligibility criteria as the federal EITC.  The amount of the Michigan credit is calculated as a percentage of the amount the family or individual receives from the federal EITC.  Previously, the Michigan EITC was calculated as 6% of the federal EITC.  For example, if a family qualified for a $3000 federal EITC refund, they received an additional $180 ($3000 x 6%) from the state of Michigan when filing their state taxes.  

Under the new law, now in its second year of implementation, the Michigan credit was increased to 30% of the federal credit.  In the same example, a family qualifying for a $3000 federal EITC refund will now receive an additional $900 ($3000 x 30%) from the state of Michigan.

CHILD TAX CREDIT – Who is eligible?

The Child Tax Credit provides $1500-2000 per child for qualifying families.

  • Children under age 17 living in your home.
  • Earned at least $2500 from working in 2024. 
  • Children must have a valid Social Security Number (adults may have an ITIN). 
  • If you are the child’s primary caregiver, you are likely eligible. You don’t need to be the child’s biological parent to qualify. 

EXPERT TAX PREP AVAILABLE AT NO COST:

All residents with income less than $67,000 qualify for an expert tax preparation appointment at no cost to them.  For the 2025 tax season, Accounting Aid Society and Wayne Metro will offer primarily in-person tax prep services.  Drop-and-go and all-virtual appointments will also still be available.

  "As we celebrate the 50th anniversary of the Earned Income Tax Credit (EITC), we recognize its profound impact on hardworking families across Detroit. The EITC is a vital tool in lifting families out of poverty, and with Michigan's 30% state match, it offers an even greater opportunity to create financial stability and opportunity,” said Priscilla Perkins, President and CEO of Accounting Aid Society. “We are grateful for the steadfast support of the Mayor's Office in helping us provide no-cost tax filing services to ensure that every eligible family claims the credits they deserve. Together, we are building a stronger Detroit, one family at a time." 

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SPREADING THE WORD:

This coalition is working to spread the word to those who are at the greatest risk of missing out, such as first-time parents who may not know they are eligible, non-traditional families where the biological parents are not the primary caregivers, families that don’t make much money and don’t normally file taxes, and families with limited English, limited education, and limited connections to social services.  

We are working with community-based organizations to meet families where they are with in-person outreach at community events, flyers at community locations, direct outreach to neighborhood residents, and more.  These efforts receive additional funding and support through the generosity of funding partners including Kresge Foundation, Ballmer Group, PNC Foundation, and Community Economic Development Association of Michigan (CEDAM).

The most important thing to know is that most Detroiters are eligible for expert tax preparation at no-cost, thanks to the help of hundreds of staff and volunteers from Accounting Aid Society and Wayne Metro. These IRS-certified non-profit partners specialize in helping low- and moderate-income individuals claim the credits they are entitled to.  They have a higher accuracy rate than most for-profit tax filing companies. 

“Our goal is to help families get the most out of their tax returns and put that money back into the household budget,” said Louis D. Piszker, Wayne Metro Chief Executive Officer. “It’s so important to work with a certified preparer to maximize tax credits such as the Earned Income Tax Credit, Child Tax Credit, home heating credit, and dependent care. During tax appointments we can also address property taxes, water, and energy assistance, along with financial counseling, debt reduction, and credit repair.”

Through its extensive network of community resources, United Way will again lead this coalition - making sure Detroiters are connected to the help they need. 

“For 50 years, the Earned Income Tax Credit has provided a much-needed financial boost to help families pay for basic essentials and get caught up on overdue bills.  Thanks to the 2023 expansion of the Michigan EITC, even more money is available this year.  The EITC, Child Tax Credit, and other tax credits provide financial stability and a foundation for economic mobility, often helping to fund a car purchase or emergency savings,” said Avec O'Brien, Chief Financial Officer at United Way for Southeastern Michigan. "Along with our partners at the city, Accounting Aid Society, Wayne Metro, and others, we are working to help everyone access the maximum refund they are owed.”

Thousands of Detroiters have scheduled their appointments for tax help by calling 2-1-1 or going online at GetTheTaxFacts.org – you can too!