Gov. Gretchen Whitmer announced on Thursday 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 – which are on average $550 – to more than 700,000 Michigan households. The new checks are part of $1 billion in tax cuts that Whitmer signed into law earlier this year, including a bill from Sen. Kristen McDonald Rivet (D-Bay City) to raise the state’s federal match of the Earned Income Tax Credit from 6% to 30%.
“Research shows that families mostly use their refunds to pay for necessities like food and childcare, or to pay for advanced education or training,” McDonald Rivet said. “Every child and hard-working family deserves stability and I firmly believe we’re delivering that.
“Having championed the Working Families Tax Credit expansion for years, building and working with an extensive coalition to get it passed, it’s gratifying to know our working families who need this the most will finally be getting this relief.”
What is the Working Families Tax Credit?
In March, Whitmer signed legislation increasing the Michigan Working Families Tax Credit match of the federal Earned Income Tax Credit to 30 percent. This expansion will deliver an average combined tax refund of $3,150 to 700,000 families, directly impacting nearly one million children – almost half the kids in Michigan.
“Michiganders needed us to go big and we did,” McDonald Rivet said. “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 Feb. 13, the State of Michigan 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.
Why are Michiganders receiving additional checks?
While the expanded state match takes effect in 2024, the legislation applies retroactively to 2022, meaning eligible Michiganders can receive both an additional check from their 2022 tax return and receive the full 30% tax credit on their 2023 tax filing when they file next year.
Eligible Michiganders should still apply for the expanded tax credit if they met the criteria in 2023. 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.
How do Michiganders receive their checks?
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 on the Michigan Department of Treasury – Taxes webpage.
Michigan Earned Income Tax Credit
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.
According to data compiled by the Michigan League for Public Policy, 22,207 households in Senate District 35 received the EITC in 2019. The quintupled tax credit will benefit nearly 30,000 kids and uplift 718 families out of poverty in McDonald Rivet’s district.