Can anyone point me to where Michigan's EITC is not claimable for non residents. I do not believe that a nonresident should or can get this EITC, but I cannot find where in the instructions it says so. My client is only filing MI return for casino winnings, but does get federal EITC. My software is trying to give her the MI EITC and the software company told me that they could not find the nonresident exclusion for the state EITC anywhere in the instructions or on the website. I talked to the MI Dept of Revenue today and they could not find the instructions or specific exclusion either. I know that the intent of the MI EITC is not intended for nonresidents, but if they did not exclude them in the law then nonresidents who file a MI return would be eligible.
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Quick ... Let's all file a MI return!!
I could use some extra cash!!
That sounds nuts! Can't you just NOT take the credit? What tax software do you use?Matthew Jones
Tax Preparation
Computer Consultant
Tax Season is here!
Make sure everything is working, extra ink or toner is available, Advil in top drawer!
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Not Michigan but
Doesn't EIC stand for "Earned" Income Credit? How can Casino winnings be classified as "Earned" income? Of course, most non-resident returns consider the entirety of the federal return and then apportion downward, so there could be apportioned "earned income" for Michigan purposes, as wacky as that may sound.
I think THOUSANDS of non-residents should claim this idiocy, and that way the state people would do something to give a clear-cut answer.Comment
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I heard from the MI Dept Of Treasury today. It is an error in their tax code. The two pertinent portions of the code are MCO 206.272, which states that any taxpayer that has federal EITC qualifies for MI EITC, and MCO 206.26 which states that a taxpayer is anyone who needs to file a MI return. Because my client is required to file a MI return, due to having won $1206 at the casino and the casino did MI withholding.
The Michigan agent said that they have tried to pass legislation to limit this to Michigan residents, but the legislators have never passed any of it.
Our client will get almost as much MI EITC as she won in the casino. This is crazy.Comment
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All-Time Stupid
Toledo, you've got to be kidding. I suppose not since you've actually talked to the Michigan revenooers.
I remember Michigan when it had a vibrant economy, and among the upper echelon in states with respect to quality of life, property values, education structure, etc. I worked my way through college in the summers in the auto plants with Chrysler and earned enough in 3 months to pay my tuition for a whole year. I remember Grand Boulevard in Detroit when it was truly "Grand."
Today, entire vacant dilapidated blocks along Grand Boulevard are photod and circulated on the internet as the consummate example of urban decay. How can this state even afford EITC at all? let alone refuse to disqualify non-residents from claiming it?
Maybe the answer is the same as it is for all politics: "The more things change, the more things stay the same."Comment
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