Significant Update for Michigan Earned Income Tax Credit Calculation
There was an incorrect calculation for Earned Income Tax Credit in tax year 2022 and 2023 Michigan Individual Income Tax program. The incorrect calculation led to a failure to claim a refundable EITC from impacted returns, resulting in a smaller refund. A fix was implemented and released for tax year 2023 on 3/7/2024 and tax year 2022 on 4/18/2024. Before the fix was available, if a tax return claiming the Earned Income Credit on Federal Form 1040 filed Form MI-1040 with $0 Michigan taxable income and one of the following residency statuses, then the return may be impacted.
Please review and amend tax return as needed.
1. Joint return - One spouse is full year resident and other spouse is part year or nonresident
2. Joint return - One spouse is part year resident and other spouse is part year or nonresident, OR
3. Single return - Filer is a part-year resident
