Governor Gretchen Whitmer of Michigan has announced a significant step in providing financial relief to working families in the state.
On February 13, 2024, families across Michigan will receive Working Families Tax Credit checks ahead of schedule, reflecting the administration’s commitment to easing financial burdens for its residents.
Putting Money in Pockets
These checks, averaging $550, are part of a comprehensive $1 billion tax cut initiative signed into law earlier in the year by Governor Whitmer. The legislative package, which included a bill from Senator Kristen McDonald Rivet (D-Bay City), aimed to bolster the state’s federal match of the Earned Income Tax Credit (EITC) from 6% to an impactful 30%.
Senator McDonald Rivet emphasized the positive impact of the Working Families Tax Credit expansion, stating, “Every child and hard-working family deserves stability, and I firmly believe we’re delivering that.” The tax credit checks are anticipated to provide essential support for Michigan families, helping them cover necessities like food, childcare, and advanced education or training.
In March, Governor Whitmer signed legislation that increased the Michigan Working Families Tax Credit match of the federal Earned Income Tax Credit to an impressive 30%.
This move is expected to result in an average combined tax refund of $3,150 for approximately 700,000 families, directly benefiting nearly one million children—representing almost half of Michigan’s youth population.
Senator McDonald Rivet, who played a crucial role in championing the tax credit expansion, highlighted the significance of the policy shift: “Expanding this tax credit from 6% to 30% was my day one priority because I knew how meaningful it would be. Families hit hardest by inflation will get an average of $3,150 back in their pockets from the combined credits.”
Beginning February 13, the State of Michigan will initiate the mailing of checks to families qualifying for the Working Families Tax Credit based on their 2022 tax returns. These checks will represent the difference between the 6% tax credit previously received and the 30% owed under the new law. Based on data from previous returns, eligible Michiganders can expect an additional $550, on average.
The expanded state match, effective in 2024, also applies retroactively to 2022. This means eligible Michiganders may receive both an additional check from their 2022 tax return and the full 30% tax credit on their 2023 tax filing, offering a dual benefit to those in need.
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Michigan’s $1 Billion Tax Cut and EITC Boost
Eligible Michiganders need not submit additional paperwork to receive the tax credit. The Department of Treasury will automatically process checks for those who submitted their 2022 tax return and confirmed eligibility. Checks will be mailed on a rolling basis as soon as they are printed, with an estimated distribution period of five to six weeks.
However, Michiganders with concerns about address accuracy can manually update their information on the Michigan Department of Treasury – Taxes webpage.
The Michigan EITC is a vital tax benefit for working individuals with income below a certain level. For tax years 2022 and 2023, the credit amount can reach up to $2,080 and $2,229, respectively, depending on various factors.
The quintupled tax credit is expected to benefit thousands of households, with data from the Michigan League for Public Policy indicating positive impacts on Senate District 35, including nearly 30,000 kids and uplifting 718 families out of poverty.
As Michigan takes proactive steps to support its working families, the early disbursement of Working Families Tax Credit checks serves as a beacon of financial relief and stability for households across the state.
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