Key Takeaways
• Michigan expanded Earned Income Tax Credit to 30% of federal EITC starting tax year 2024.
• Only immigrants with Social Security Numbers can claim Michigan EITC and federal Child Tax Credit.
• Homestead Property and Home Heating Credits remain available for eligible Michigan residents.
As of July 10, 2025, immigrants living and working in Michigan have access to several important tax credits and benefits. However, the rules about who can claim these credits, how much they can get, and what paperwork is needed can be confusing—especially for newcomers or those with different immigration statuses. This update explains what has changed, who is affected, what steps immigrants need to take, and what these changes mean for people with pending applications or those planning to file taxes in 2025.
Summary of What Changed
The main update for 2025 is the continued expansion of the Michigan Earned Income Tax Credit (EITC), which now stands at 30% of the federal EITC amount. This increase helps more low- and moderate-income families keep more of their earnings. However, the rules about who can claim the Michigan EITC remain tied to federal eligibility, which means that only people with Social Security Numbers (SSNs) can qualify. There is no new state-level child tax credit in Michigan, but families may still qualify for the federal Child Tax Credit if they meet the requirements. Other state programs, like the Homestead Property Tax Credit and the Home Heating Credit, remain available for those who qualify.
Who Is Affected
- Immigrants with Social Security Numbers: If you have a valid SSN and meet the other requirements, you can claim the Michigan EITC and possibly the federal Child Tax Credit.
- Immigrants with Individual Taxpayer Identification Numbers (ITINs): At this time, Michigan does not allow people with only an ITIN to claim the EITC. This is the same as the federal rule.
- Families with Children: While Michigan does not have its own child tax credit, families may still benefit from the federal Child Tax Credit if they meet the requirements.
- Homeowners and Renters: Immigrants who own or rent their homes may be able to claim the Homestead Property Tax Credit or the Home Heating Credit, depending on their income and residency status.
Effective Dates
- The expanded Michigan EITC rate of 30% of the federal EITC applies to the 2024 tax year and beyond.
- All other program rules and eligibility requirements are current as of July 10, 2025.
Required Actions
If you are an immigrant in Michigan and want to claim any of these credits or benefits, here are the steps you should take:
- Check Your Immigration Status and Tax Identification:
- If you have a Social Security Number, you may be eligible for the Michigan EITC and the federal Child Tax Credit.
- If you only have an ITIN, you are not eligible for the EITC but may still need to file taxes for other reasons.
- Gather Your Documents:
- Collect your W-2s, 1099s, and any other proof of income.
- Make sure you have Social Security Numbers for everyone in your household if you plan to claim the EITC.
- File Your Tax Return:
- You must file a Michigan state tax return to claim the Michigan EITC, even if you do not owe any taxes.
- To claim the federal Child Tax Credit, file a federal tax return and include all required information about your children.
- Apply for Other Credits if Eligible:
- If you own or rent your home, check if you qualify for the Homestead Property Tax Credit or the Home Heating Credit. These programs have their own forms and requirements.
- Seek Help if Needed:
- Free tax preparation help is available through organizations like United Way and the Michigan Department of Treasury. These groups can help you understand your eligibility and file your taxes correctly.
Detailed Overview of Michigan’s Tax Credits for Immigrants
Michigan Earned Income Tax Credit (EITC)
The Michigan EITC is a state tax credit for people who work and earn low or moderate incomes. It is designed to help working families keep more of their money and reduce poverty.
Key Points:
– Amount: The Michigan EITC is now 30% of the federal EITC. For the 2024 tax year, the maximum Michigan EITC is $2,349.
– Eligibility: To qualify, you must:
– Have earned income from working.
– Meet all federal EITC rules, including having a valid Social Security Number for yourself, your spouse (if filing jointly), and any children you claim.
– File a Michigan tax return, even if you do not owe any state taxes.
– Who Cannot Claim: Immigrants who only have an ITIN (not an SSN) cannot claim the Michigan EITC. This is because Michigan follows the same rules as the federal government.
– How to Claim:
– Complete your federal tax return first to see if you qualify for the federal EITC.
– Then, fill out your Michigan state tax return and claim the EITC.
– For more details, visit the Michigan Department of Treasury’s EITC page.
Important:
All household members must have a Social Security Number. If even one person in your family does not have an SSN, you cannot claim the EITC for your household.
Federal Child Tax Credit
Michigan does not have its own child tax credit, but families in Michigan can still claim the federal Child Tax Credit if they qualify.
Key Points:
– Amount: For the 2024 tax year, the federal Child Tax Credit is up to $2,000 per qualifying child under age 17.
– Eligibility:
– The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
– The child must have a valid Social Security Number.
– The taxpayer must meet income requirements.
– How to Claim:
– File a federal tax return and include all required information about your children.
– You do not need to file a separate Michigan form for the child tax credit, since it is a federal program.
Note:
If you or your child only have an ITIN, you cannot claim the federal Child Tax Credit. Both the taxpayer and the child must have SSNs.
Other State-Level Programs
Homestead Property Tax Credit
This credit helps low- and moderate-income homeowners and renters with their property taxes.
Key Points:
– Eligibility:
– You must own or rent your home in Michigan.
– Your total household resources (income) must be below a certain limit.
– You must have lived in Michigan for at least six months during the year.
– How to Claim:
– File Form MI-1040CR with your Michigan tax return.
– For more information and to download the form, visit the Michigan Department of Treasury’s Homestead Property Tax Credit page.
Home Heating Credit
This program helps low-income households pay for heating costs.
Key Points:
– Eligibility:
– Based on income, number of people in the household, and heating costs.
– Both homeowners and renters can apply.
– How to Claim:
– File Form MI-1040CR-7.
– You do not have to file a full tax return to claim this credit.
– More details are available on the Michigan Department of Treasury’s Home Heating Credit page.
Implications for Pending Applications and Future Policy
Pending Applications:
If you have already filed your taxes for 2024 and claimed the Michigan EITC, you do not need to take further action unless you receive a letter from the Michigan Department of Treasury asking for more information. If you are waiting for a decision, make sure your contact information is up to date and respond quickly to any requests from tax authorities.
Future Policy Changes:
Advocacy groups continue to push for changes that would allow more immigrants, including those with ITINs, to claim the Michigan EITC. They also want to expand eligibility to younger workers under 25 and older workers over 65 who do not have children. However, as of July 2025, no new laws have been passed to make these changes.
What This Means for Immigrants:
– If you have a Social Security Number, you can benefit from the expanded Michigan EITC and the federal Child Tax Credit.
– If you only have an ITIN, you are not eligible for these credits, but you may still qualify for other state programs like the Homestead Property Tax Credit or the Home Heating Credit.
– Stay informed about possible changes by checking the Michigan Department of Treasury’s website or speaking with a trusted tax advisor.
Economic and Social Impact
The expanded Michigan EITC now helps about 740,000 households in the state. This extra money helps families pay for food, rent, and other basic needs. According to analysis by VisaVerge.com, these credits also help local businesses because families have more money to spend in their communities.
Experts say that while these credits are a big help, more needs to be done to include immigrants who work and pay taxes but do not have Social Security Numbers. Many advocacy groups argue that expanding eligibility would help even more families and make the tax system fairer.
Multiple Perspectives
- Advocacy Groups:
These groups want Michigan to allow people with ITINs to claim the EITC and to create a state-level child tax credit. They say this would help more families and support economic growth. - Government Officials:
Officials have expanded the Michigan EITC but have not yet changed the rules to include more immigrants. They say they are still looking at ways to help more people but have not made any promises.
Practical Guidance and Next Steps
If you are an immigrant in Michigan and want to make sure you get all the tax benefits you qualify for, here are some steps you can take right now:
- Check Your Eligibility:
Review your immigration status and make sure you have a Social Security Number if you want to claim the Michigan EITC or the federal Child Tax Credit. - File Your Taxes on Time:
Even if you do not owe any taxes, you must file a return to claim these credits. - Get Help if You Need It:
Free help is available from the United Way and the Michigan Department of Treasury. They can answer your questions and help you fill out the right forms. - Stay Informed:
Policy changes can happen at any time. Check the Michigan Department of Treasury’s website for the latest updates.
Conclusion
The Michigan Earned Income Tax Credit and the federal Child Tax Credit are important tools for helping working families, including many immigrants, keep more of their money. While the rules can be strict—especially about needing a Social Security Number—there are still ways for many immigrants to benefit. Other programs, like the Homestead Property Tax Credit and the Home Heating Credit, offer more help for those who qualify.
If you are unsure about your eligibility or need help filing your taxes, reach out to trusted organizations or visit official government websites for guidance. By taking these steps, you can make sure you get the support you deserve and stay up to date on any new changes that may affect you and your family.
Learn Today
Earned Income Tax Credit (EITC) → A tax credit for low- to moderate-income workers, reducing taxes owed and increasing refunds.
Social Security Number (SSN) → A unique identifier required for claiming most tax credits, proving work authorization status.
Individual Taxpayer Identification Number (ITIN) → A tax processing number for non-SSN holders, ineligible for certain credits like Michigan EITC.
Homestead Property Tax Credit → A Michigan state credit helping low- and moderate-income homeowners or renters reduce property tax payments.
Federal Child Tax Credit → A federal tax benefit up to $2,000 per qualifying child under age 17 with valid SSN.
This Article in a Nutshell
Michigan’s 2025 tax credit updates benefit many immigrants with Social Security Numbers, expanding the Earned Income Tax Credit to 30% federal level. ITIN holders remain excluded. Homeowners, renters can apply for property and heating credits. Timely filing and documentation are crucial for claiming these benefits correctly.
— By VisaVerge.com
