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Michigan NewsBe prepared: Thousands to get more money from the state as changes...

Be prepared: Thousands to get more money from the state as changes come to Michigan’s income tax returns this year

Michigan – If you’re looking to get a large tax refund fast, it’s important to know that the Internal Revenue Service (IRS) will begin processing personal tax returns starting January 29th.

Tax season in Michigan starts on January 29th

On Tuesday, the Michigan Department of Treasury made it clear that this date, January 29th, is also when the 2024 tax season kicks off in Michigan. They pointed out that people can submit their state tax returns in three ways: online, through a tax professional, or by sending in the paperwork by mail. Remember, all tax returns and any taxes you owe to the state of Michigan need to be in by April 15, 2024.

To make things easier for taxpayers, Michigan has set the same deadline for state taxes as the IRS. This was confirmed by the Michigan Department of Treasury in a recent announcement.

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“The individual income tax season is rapidly approaching,” Deputy State Treasurer Kavita Kale said in the release. “The Michigan Department of Treasury will be ready to process your return when the filing season begins later this month. We will work as fast as practical to process your return and issue refunds, especially with some of the recent changes to state law regarding the Michigan Earned Income Tax Credit for working families and the ‘Retirement Tax’ rollback.”

Every employer has to send out W-2 and 1099 forms, which show last year’s earnings, to their employees by January 31st.

The Michigan Department of Treasury advises not to use your final pay slip of the year for filing state taxes. These slips often don’t show the total income you’ve made accurately. If you file your taxes too quickly without all the necessary documents, you might have to submit a corrected tax return later. Also, any state tax returns missing required documents will be delayed for later processing.

Tax season in Michigan starts on January 29th with some changes everyone should consider, money to hit Michiganders accounts soon

Working families to get more money under the Earned Income Tax Credit (EITC)

Michigan’s tax forms and guidelines for 2023 have been updated to show the increase in the Michigan EITC (Earned Income Tax Credit) for working families. This increase, from 6% to 30%, is part of the Lowering MI Costs Plan.

The new law will start on February 13, 2024, but the Michigan Department of Treasury advises taxpayers who qualify for the Michigan EITC not to wait. They should file their 2023 tax returns and claim the bigger credit now. The Treasury Department will start processing these returns as they come in and will get them ready for when the law begins.

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Michigan Department of Treasury payments for supplemental check for tax year 2022

Starting February 13, 2024, the Michigan Department of Treasury will be sending out extra checks over a period of 5 to 6 weeks. These checks are for those who qualify to get the additional 24% of the Michigan EITC (Earned Income Tax Credit) for the 2022 tax year. These checks will be mailed to the latest address the Treasury has on record.

The Treasury regularly updates addresses based on your recent tax returns, so they should have your current address. But, if you’ve moved a lot or just recently and are worried they might not have the right address, you can update it yourself through the IIT Service.

Remember, there’s no need to file a changed 2022 tax return just to update your address or to claim the increased Michigan EITC.

More Michigan retirees to benefit from “Retirement Tax” rollback

The Lowering MI Costs Plan is gradually bringing back the retirement and pension tax deduction for many Michigan taxpayers, starting in 2026. This four-year process is aimed at benefiting more retirees in the state. The Michigan Department of Treasury says this change will help retirees, especially those in special situations, without causing them any harm.

Retirees are encouraged to file their taxes early and take advantage of these new options for retirement and pension deductions as soon as tax season begins. This approach saves time and avoids the cost and hassle of having to file a corrected tax return later. Therefore, retirees eligible for these benefits should file their 2023 tax returns promptly and claim the most beneficial pension and retirement deductions available.

The Michigan Department of Treasury plans to start processing these affected tax returns as they come in and will get them ready for release once the law is in effect on February 13, 2024.

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To learn more about Michigan’s individual income tax, go to www.michigan.gov/incometax or follow Treasury on X, formerly Twitter, or on LinkedIn.