In an effort to support Michigan households, Governor Whitmer announced that over 700,000 families will receive checks averaging $550 next year through the Working Families Tax Credit. This boost comes from a new law enacted in March, aligning the state’s credit with the federal Earned Income Tax Credit of 30 percent. Families are anticipated to receive a combined tax refund of $3,150 in February. Governor Whitmer highlighted the direct benefits to half the children in Michigan, emphasizing that the extra funds can assist parents in covering bills, providing meals, and purchasing school supplies during tax time.
Enhancing Financial Support: The Working Families Tax Credit in Michigan
The Working Families Tax Credit is a tax benefit provided to Michigan families if their working members earn below a certain income threshold. Connected to the federal government’s Earned Income Tax Credit, this credit depends on the family’s income and the number of children they have. For instance, if two parents earn up to $59,478 and have two qualifying children, IRS tables indicate they could receive a credit of up to $6,604.
This year, Michigan increased the Earned Income Tax Credit from 6% to 30%, aligning with the federal rate. Families benefit from a reduced overall tax bill as the credit they receive lowers their existing tax obligations. Following recent legal changes, tax credit checks are scheduled to be mailed on February 13, 2024, assisting eligible families with financial challenges.
The initiative supports families by providing them with cashback, particularly aiding those facing financial difficulties. Michigan aims to ensure families receive a fair and increased credit by aligning it with the federal standard, addressing diverse financial needs and promoting overall well-being.
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Tax Credit Expansion: Easy Updates for Your 2022 Returns
The expanded tax refund can be applied to your 2022 tax returns as well. Although the law takes effect in 2024, it retroactively covers tax credits for 2022. If you qualify and claim the original 6% credit, it will make up the difference when you receive your 2023 tax credit check, including the extra amount to match the new 30% tax rate.
No need to stress about modifying your 2022 tax return to receive the additional funds. The Earned Income Tax Credit (EITC) is accessible to individuals who worked and earned less than $63,398 in income, with investment income below $11,000. Additionally, U.S. citizenship and a valid Social Security number are required.
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