Low-Income Families can get Relief with Home Heating Expenses

By Michigan League for Human Services

Due to the high cost of oil and natural gas, Michigan families and individuals are facing enormous home heating expenses this winter. In Michigan, these costs especially harm low-income working families, who may be forced to forgo other necessities in order to pay their monthly heat bills.

To help offset some of these expenses, the State of Michigan provides a Home Heating Credit to Michigan residents. The credit is available to both homeowners and renters, who can receive the credit even if they do not owe any Michigan income tax and do not file an income tax form for 2010. (The form used to claim the credit is separate from the Michigan income tax form.)

Residents who pay their heating bills themselves get the credit in the form of an energy voucher, which must then be sent to their heat provider. Renters who have heat included in the rent receive a check for half of their credit amount, while recipients of the Family Independence Program have their credit sent directly to the heat provider. Unlike most tax credits, which need to be claimed on tax forms filed before April 18, the home heating credit can be filed as late as September 30, 2011.

Agencies and organizations that serve low-income people are encouraged to make their clients aware of the credit and to assist them in filing for the credit if needed. Filers can also find out where to receive assistance through the Michigan Statewide EITC Coalition's website (www.MichiganEIC.org) or by calling 2-1-1.

The "Money Back in Michigan" handout includes the following information for Tax Year 2010:

• State Homestead Property Tax Credit
• State Home Heating Tax Credit
• Federal and State Earned Income Credits
• Federal Child Tax Credit
• Federal Child & Dependent Care Credit
• Federal American Opportunity Tax Credit
• Federal Making Work Pay Credit
• Federal Making Work Pay Credit

For the “Money Back in Michigan” handout, click here.