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Filing for the future: How Detroit families gain from tax credits

Detroit

When tax season arrives in Detroit, the stakes are high. More than 40% of the city’s children live in poverty, and the tax code is one of the surest, fastest tools for putting money into family budgets. Refundable credits like the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) can return thousands of dollars to eligible households—often enough to pay down debt, purchase a reliable vehicle, or take a first step toward homeownership. Yet every year, Detroit families leave an estimated $80 million in tax credits unclaimed—too often because filing feels confusing, costly, or out of reach.

The Detroit Tax Credit Coalition formed to change that. Launched in 2021 with support from a group of funders led by The Kresge Foundation, the coalition’s mission is straightforward: make it easy, trustworthy, and free for low- and moderate-income Detroiters to file taxes and receive every credit they’ve earned.

A coalition built on trust—and results

The Coalition builds on a 2017 effort spearheaded by Detroit Mayor Mike Duggan’s office. Today, United Way for Southeastern Michigan facilitates the steering committee alongside the City of Detroit and two tax preparation leaders—Accounting Aid Society and Wayne Metropolitan Community Action Agency—while a network of community organizations carries the message deep into neighborhoods.

“The key to increasing the number of Detroiters who file taxes and claim their credits comes down to three things: awareness, trust, and access,” said Megan Thibos of United Way. “Our central website, GetTheTaxFacts.org, offers clear information and a unified scheduling tool, and our VITA partners operate dozens of convenient sites so help is close to home.”

An evaluation by the University of Michigan estimated that in 2021–2022, the coalition helped Detroit families claim more than $6.5 million in Child Tax Credits that otherwise would have been missed—evidence that coordinated outreach and high-quality preparation can move real dollars into household budgets.

Meeting people where they are

“The Detroit Tax Credit Coalition works because it blends trusted, high-quality tax preparation with the deep community connections of our outreach partners,” said Matt Hetherwick of Accounting Aid Society. “We meet people where they are—geographically and in terms of trust—so no one is left behind because they didn’t know help was available or feared they couldn’t afford it.”

Wayne Metro’s Ricky Palitti underscored the impact: “Partnership makes it possible to reach as many people as we do. The result is real impact, saving families hundreds of dollars each in filing fees and putting more money back into household budgets where it’s needed most.”

For neighborhood partners, participation is about aligning with community priorities. “Congress of Communities participates in the tax coalition because the residents we serve need access to affordable tax preparation and clear information about all the benefits available to them,” said Amanda Holiday.

In HOPE Village, Executive Director Jeffrey Jones said tax help is core to the mission: “This work is a vital resource to our community. We exist to mitigate disparities in wealth, health, and education—and the coalition’s approach advances that priority.”

Breaking down barriers to benefits

Access is often blocked by multiple, overlapping hurdles. “Families may not know what they can claim, they may mistrust financial systems, or they may face practical challenges like transportation, language, or technology,” said Hetherwick. “We address this by offering free, trusted services in community settings; training outreach partners to share accurate, culturally relevant information; and providing in-person, drop-off, and virtual options. We invest in long-term relationships so residents know there’s reliable help year after year.”

Wayne Metro complements tax services with wrap-around support. “Our agency helps clients tackle other life needs that can stand between them and the credits they’ve earned,” said Program Manager Tameka Gray.

United Way targets common misconceptions. “Some families mistakenly believe they aren’t eligible,” Thibos said. “For example, grandparents raising grandchildren may qualify even when the children are not biological. We’ve added a trilingual flyer in English, Spanish, and Arabic, made our website and scheduling tool available in Spanish, provide 1:1 navigation for issues like IDs, and are exploring transportation support next year.”

Reaching the hardest to reach

The coalition’s outreach strategy is layered and persistent. “Mass outreach through text messaging and targeted digital ads casts a wide net and makes it easy to click straight through to schedule,” said Thibos. “Community-based outreach kick-starts word-of-mouth networks. And for those who are hesitant or face barriers, our team offers personalized navigation.”

Congress of Communities focuses on multiple touchpoints. “Research shows people need to see information several times before acting,” Holiday said. “We set up at community events, send texts and emails to members, and use social media—often handing out free books to encourage conversations and promote literacy at the same time.”

For HOPE Village, accessibility and presence are the rule. “Be accessible and show up in a variety of places,” said Jones. “That’s how trust is built.”

Virtual access and language capacity round out the approach. “Virtual appointments have been a game-changer, and our bilingual team members help ensure those whose first language isn’t English receive the assistance they need,” said Palitti.

Policy progress—and what’s next

The coalition pairs on-the-ground services with policy advocacy. Recent progress includes the 2023 expansion of the Michigan EITC, which quintuples the state credit and puts millions more dollars into family budgets. Even amid a volatile policy environment—with recent federal changes increasing the Child Tax Credit by $200 per child alongside cuts to SNAP and Medicaid—partners remain focused on expanding eligibility and benefit amounts for both the EITC and CTC over time.

Implementation work continues year-round: strengthening existing outreach partnerships, building new ones, expanding tax prep capacity, and learning from data to improve resident experience. The invitation is open. If your organization would like to collaborate, email [email protected]. To learn more or schedule a free appointment, visit GetTheTaxFacts.org.

Why it matters

When families file, children thrive. A maximum EITC can exceed $10,000 (state and federal combined), with an additional $1,700–$2,200 per child from the CTC—dollars that stabilize households and unlock opportunity. By centering trust, access, and community leadership, the Detroit Tax Credit Coalition is helping families file for the future—and keep more of what they’ve earned.

Contributors:

Megan Thibos, Director of Community Impact Innovation, United Way for Southeastern Michigan; Matt Hetherwick, Chief Program Officer, Accounting Aid Society; Ricky Palitti, Assistant Director of Programs, Wayne Metro; Tameka Gray, Program Manager, Income Tax, Wayne Metro; Jeffrey Jones, Executive Director, HOPE Village Revitalization; Amanda Holiday, Early Childhood Programs Director, Congress of Communities.