Hundreds of thousands of Michigan households are set to receive a much-needed financial boost as the state government begins mailing out $550 tax credit checks. Governor Gretchen Whitmer announced the initiative as part of a $1 billion tax cut plan, aimed at supporting working families. The tax credit checks, which will benefit over 700,000 households, are designed to alleviate financial strain and provide relief to those struggling to make ends meet.
Michigan’s Enhanced Working Families Tax Credit Explained!
To qualify for the Working Families Tax Credit, which mirrors the federal Earned Income Tax Credit, individuals must meet specific requirements and submit a federal income tax return. It’s essential to note that even if there’s no tax liability or obligation to file a return, applying for the federal credit remains crucial. Michigan enhances this credit by adding an extra 30% when taxpayers file their state income tax return.
When completing their state income tax returns, qualified taxpayers had already received a 6% Michigan Working Families Tax Credit for the 2022 tax year. With effect from February 13, a new state law guarantees that these taxpayers would get an additional check for the remaining 24% of their Working Families Tax Credit for the 2022 tax year.
The Michigan Department of Treasury will begin issuing these tax credit checks on February 13 via USPS, with distribution expected over a 5-to-6-week period. Checks will be sent to the most recent address on file with the state treasury. Looking ahead, the Working Families Tax Credit for the 2023 tax year will be applied at the full 30% rate when taxpayers file their state tax returns.
State Treasurer Rachael Eubanks encourages eligible individuals to consider filing electronically or seeking assistance from reputable tax preparers to ensure they claim all available credits. The potential financial benefit is significant, and accessing free tax preparation help from IRS-certified volunteers or resources like michiganfreetaxhelp.org can make the process easier for those in need. This initiative aims to provide vital support to Michigan families, helping them navigate financial challenges and build a brighter future.