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Michigan NewsFinancial relief: Michigan Gov. Whitmer confirms that 700,000 families will get $550...

Financial relief: Michigan Gov. Whitmer confirms that 700,000 families will get $550 on average as soon as next month

Michigan – Governor Gretchen Whitmer is working on a plan to reduce taxes by $1 billion, which could really help Michigan residents save money. A key part of this plan is the child tax credit (CTC) program, which could make a big difference for many families.

“By quintupling the Working Families Tax Credit, we’re putting an average of $550 back in the pockets of 700,000 Michigan families ahead of schedule,” Whitmer said in a statement. “This directly benefits half the children in Michigan, and moms and dads can use this extra money at tax time to pay the bills, put food on the table, and buy school supplies.”

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“Across the United States, inflation is decreasing and take-home pay is increasing, proving that our work in Michigan and President Biden’s efforts in Washington are moving us in the right direction. We still have more work to do, and today’s announcement will help get you some relief sooner than expected. Let’s keep rolling up our sleeves, lowering costs, and growing our economy,” she continued.

700,000 Michigan residents are going to get $550 on average starting next month as a part of Earned Income Tax Credit (EITC)

Working Families Tax Credit also known as Earned Income Tax Credit (EITC)

This program, also known as the Earned Income Tax Credit (EITC), is for payments from 2022. But people in Michigan can also get a big 30% tax credit on their taxes for 2023. In March 2023, the governor of Michigan made a law to increase the Michigan Working Families Tax Credit from 6% to 30%.

This big increase means that about 700,000 families will get an average tax refund of $3,150, helping around one million children. This is almost half of all the kids in Michigan. The money works like a tax credit, reducing the amount families have to pay in taxes. It’s a lot like the federal Earned Income Tax Credit.

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People living in Michigan don’t have to fill out extra forms to get these tax credits. However, if you’ve moved recently, it’s a good idea to tell the state about your new address. This way, they know where to send your money. You can update your address by mail, phone, or online.

Who is eligible to get the money

To be eligible, you need to be a US resident and have a valid Social Security number. Michigan families can take advantage of the Working Families Tax Credit, and this applies to the 2022 tax year as well. If you’re in Michigan and filed your taxes for 2022, the Department of Treasury will handle sending out checks for anyone who qualifies for extra state credit.

The amount in each check is the extra money you get from the new rule. It’s the difference between a 6% tax credit (which was the old rate) and the new 30% rate. How much you get depends on your total family income and how many kids you have.

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When qualifying families are going to get paid

Governor Whitmer announced that her team will start sending out checks to qualified families in Michigan on February 13, 2024. They’ll send these checks gradually. It’s expected to take about five to six weeks to print and send all the payments. So, the final checks should be on their way by around the middle of March.