State increases tax credit for working families

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LANSING – On Dec. 14, Gov. Gretchen Whitmer announced that Michigan families will receive working families tax credit checks ahead of schedule, beginning Feb. 13, 2024. 

The administration is taking steps to send Working Families Tax Credit checks to more than 700,000 Michigan households, according to a news release. The new checks are part of $1 billion in tax cuts that the governor signed into law earlier this year, quintupling the Working Families Tax Credit.  

Beginning Feb. 13, the government will mail checks to Michigan families who qualified for the Working Families Tax Credit as part of their 2022 tax return. The checks will be the difference between the 6% tax credit Michiganders received on their tax return and the 30% that is owed to them under the new law. Based on data from last year’s returns, Michiganders should expect to receive an additional $550 on average.   

In March, Whitmer signed legislation increasing the state match for federal earned income tax credit from 6% to 30%. According to Whitmer’s office, the expansion will directly impact nearly one million kids – almost half the kids in Michigan. Republican lawmakers were able to delay the increase for about a year via procedural vote. 

Additionally, eligible Michiganders can apply for the expanded tax credit. It is possible for Michiganders to receive both the additional Working Families Tax Credit check from their 2022 tax return and also receive the full 30% tax credit on their 2023 tax filing when they file next year. 

“This was one of the first bills our new majority passed for good reason,” said Senate Majority Leader Winnie Brinks (D-Grand Rapids). “The [earned income tax credit] has a legacy of being one of the best policies to support work while also helping families out of poverty.”  

The Department of Treasury will automatically process checks for Michiganders who submitted their 2022 tax return and confirmed eligibility for the additional state credit. Checks will be mailed on a rolling basis as soon as they are printed. It is estimated to take between five to six weeks to print and distribute all payments.  

Eligible Michiganders do not need to submit any additional paperwork to receive the tax credit. However, if an individual has moved frequently or recently and has concerns about their address accuracy, Michiganders can manually update it online at michigan.gov/taxes.

The Michigan Earned Income Tax Credit for Working Families (Michigan EITC) is a tax benefit for working individuals with income below a certain level. The Michigan EITC provides a tax credit up to $2,080 for tax year 2022 and $2,229 for tax year 2023. The eligible credit amount depends on several factors – including income, filing status, number of “qualifying children” and disability status.