Detroit’s No-Cost Tax Preparation Initiative Aims to Maximize Residents’ Refunds
Detroit is making strides to ensure residents receive all possible tax credits, thanks to a collaborative effort spearheaded by Mayor Mary Sheffield and various community organizations. With hundreds of volunteers ready to assist, Detroiters can access expert tax preparation services without any cost. As a result, the city’s no-cost tax preparers are ranked among the highest in the nation by the IRS.
Last year, Detroit families benefited from hundreds of millions in tax credits, including the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). This year, thanks to a legislative change, the Michigan EITC has increased, offering even more financial relief to eligible residents. Essential information and resources can be accessed through getthetaxfacts.org.
Mayor Sheffield, along with partners like United Way for Southeastern Michigan, Accounting Aid Society, and Wayne Metropolitan Community Action Agency, is committed to promoting these benefits. “My administration is intensely focused on getting more Detroit families and children out of poverty,” Sheffield said. “We have volunteers ready to help residents claim and receive the tax returns they are entitled to.”
Residents earning less than $69,000 qualify for free tax preparation. Last year, the coalition filed over 26,000 tax returns, achieving a remarkable 98% accuracy rate as audited by the IRS. This stands in stark contrast to the 40% accuracy rate typically found among paid tax preparers.
In 2024, Detroiters claimed over $450 million in EITC refunds for the 2023 tax year. Before 2017, approximately $80 million in potential EITC refunds went unclaimed annually. The EITC and CTC remain significant sources of financial support, even for those who usually do not file taxes or earn minimal incomes.
Mayor Mary Sheffield greets a resident who benefitted from the EITC through the free services offered by local agencies.
Engaging Eligible Residents Through Text Alerts
The City of Detroit, in collaboration with tax preparation partners, is utilizing innovative communication methods to reach low-income families potentially eligible for substantial refunds. Text messages, sent in partnership with the Michigan Department of Health and Human Services (MDHHS), have proven effective. Data from United Way of Southeastern Michigan shows a significant increase in online appointments on days when these messages are sent.
Elizabeth Hertel, MDHHS director, emphasized the importance of these services, stating, “Too often, people miss out on tax refunds simply because they can’t afford professional tax prep help.” Residents can find more information or schedule appointments by calling 2-1-1 or visiting getthetaxfacts.org.
Understanding the Earned Income Tax Credit
The Earned Income Tax Credit has been a vital support for over 50 years, providing financial assistance to qualifying families and individuals. This year, the Michigan credit has increased to 30% of the federal EITC, bringing more money to Detroit residents. Eligibility depends on income, filing status, and the number of children claimed, with detailed criteria available for review.
Child Tax Credit Eligibility
The Child Tax Credit offers $1,700 to $2,200 per qualifying child. Eligibility includes children under 17 living at home, with primary caregivers eligible even if not biological parents. A minimum income of $2,500 from 2025 and valid Social Security Numbers for both the filer and children are required.
Free Expert Tax Preparation Services
All Detroiters earning less than $69,000 qualify for free tax preparation services, available primarily in-person this tax season. “The Earned Income Tax Credit remains one of the most powerful tools for helping families build financial stability,” said Priscilla Perkins of the Accounting Aid Society. This initiative aims to strengthen Detroit by ensuring every eligible family receives their entitled credits.
Community partners helped Detroiters receive significant EITC refunds. A resident, Tiffany Thomas, utilized her Child Tax Credit for her child’s education.
Outreach and Support
The coalition is particularly focused on reaching those most at risk of missing out on available credits, such as first-time parents, non-traditional families, and those with limited resources. Community-based organizations are conducting in-person outreach and other efforts, supported by funding partners like the Kresge Foundation and Comerica.
Louis D. Piszker of Wayne Metro emphasized the importance of these services, saying, “Too many Wayne County households miss out on tax refunds simply because they don’t know they qualify or they don’t have access to trusted tax preparation services.” United Way leads the coalition to connect Detroiters with these essential resources.
Darienne Hudson of United Way for Southeastern Michigan noted, “At a time when families are feeling the pressure of rising costs and reduced federal supports, the Earned Income Tax Credit and Child Tax Credit are more important than ever.” Residents can schedule their free tax preparation appointments by calling 2-1-1 or visiting GetTheTaxFacts.org.
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