In an effort to return funds to Detroit residents, the City of Detroit has once again partnered with various community organizations to encourage the claiming of federal and state tax credits. Previous initiatives have been successful, benefiting thousands of Detroit families through the Earned Income and Child Tax Credits, fueling optimism for the 2025 tax season. With enhanced state credits introduced by 2023 legislation, there is additional financial support available for those who qualify, according to the city's announcement.
During the launch, which was backed by the United Way for Southeastern Michigan, Accounting Aid Society, and Wayne Metropolitan Community Action Agency, Mayor Duggan emphasized the importance of these tax breaks, particularly for the working citizens of Detroit. He stated, "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," in a statement obtained by the City of Detroit. Besides encouraging eligible residents to claim these credits, the city has highlighted that more than $450 million in EITC refunds were claimed by Detroiters for the tax year 2023, a figure that does not even include Child Tax Credits.
Eligibility for these tax credits casts a wide net encompassing individuals earning up to $67,000 with variables depending on one's income, filing status, and number of children. There's also good news for the Michiganders as the value of the state EITC saw a substantial increase to 30% of the federal EITC—up from a mere 6%—thanks to the new law. Detroit's efforts towards providing expert, no-cost tax preparation for residents who meet the income requirements align with a commitment to ensuring everyone eligible can access these financial boosts. As reported by the City of Detroit, this service is crucial as free tax assistance enables residents to potentially receive back thousands of dollars.
With an infrastructure designed to assist those most at risk of missing out on these opportunities, the coalition has set in motion a robust plan of action to spread the word. Multiple community events, outreach initiatives, and educational materials are currently being utilized to raise awareness among first-time parents, non-traditional families, and those with limited resources. Aforementioned in the City of Detroit's announcement, this campaign is powered by the generosity of funders such as the Kresge Foundation, Ballmer Group, and others, ensuring that the message of available tax credits reaches its audience.
United Way is spearheading this coalition to seamlessly connect Detroiters with necessary help—an effort made noteworthy as we observe the 50th anniversary of the EITC. Avec O'Brien, Chief Financial Officer at United Way for Southeastern Michigan, emphasized the critical role of the EITC in enhancing financial stability and economic mobility, factors often instrumental in purchasing vehicles or starting emergency savings. To tap into these benefits, thousands of Detroiters have already begun scheduling their appointments by contacting 2-1-1 or via GetTheTaxFacts.org.
