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Michigan NewsPayments of $550 for 700,000 Michigan households start Tuesday, this is how...

Payments of $550 for 700,000 Michigan households start Tuesday, this is how to check if you are eligible

Starting on Tuesday, February 13, over 700,000 families in Michigan will begin to receive $550 payments, a process that’s expected to take a few weeks. These much-anticipated payments come from a decision by Michigan’s Governor Whitmer, as part of the Earned Income Tax Credit (EITC) program for 2022. Additionally, Michigan residents can look forward to a substantial 30% tax credit for 2023. Back in March 2023, Governor Whitmer signed a law boosting the Michigan Working Families Tax Credit from 6% to 30%.

Read also: GOP Rep: Michiganders will have to pay higher taxes if Gov. Whitmer wants to achieve her education and housing plans

These payments are a portion of $1 billion in tax reductions signed into law early the previous year. Governor Gretchen Whitmer declared that the Working Families Tax Credit for those with lower incomes would jump from 6% to 30% of the federal credit starting with the 2023 tax year. This increase was also applied to 2022 after the fact, which means those who are eligible could receive an extra payment from their last year’s tax return, on top of the full 30% credit for this year.

More than 700,000 Michigan households will get $550 paycheck from the state part of Working Families Tax Credit law by Gov. Whitmer

The details

Governor Gretchen Whitmer introduced the Working Families Tax Credit or Earned Income Tax Credit (EITC) program. This initiative, unveiled earlier in the year, aims to give low-income earners a retroactive payment for 2022.

The Michigan EITC was boosted from 6% to 30% of the federal level, allowing more individuals to receive refunds on taxes they’ve already paid. From February 13, this adjustment means thousands can get a $550 tax rebate, provided they qualify.

What is the Working Families Tax Credit

On January 26, Governor Whitmer enacted a law increasing tax refunds for over 700,000 families, as reported by michigan.gov. This expansion of the Michigan EITC applies retroactively to the 2022 tax year, effectively increasing the credit fivefold from 2023 onwards. The governor has urged residents to apply for both their federal and state Earned Income Tax Credits (EITC), also known as the Working Families Tax Credit.

This rebate aims to lessen the financial strain for many, as living costs continue to soar.

“From small towns to downtowns, the Working Families Tax Credit empowers families across Michigan,” Governor Whitmer said in a release. “I encourage every eligible Michigander to take advantage of the credit when you file this year.”

Read also: Michigan nonprofit is challenging state’s decision to increase personal taxes, files lawsuit go bring them down

How to know if you qualify?

To be eligible for the refund, individuals must have been taxpayers in Michigan who filed their taxes for the 2022 tax year. The refund amount varies based on the total income of the household and the number of children. For Michigan residents to fully benefit from the increased credit, they must:

  • Have earned income that is taxable and file a Michigan Individual Income Tax Return.
  • Qualify for the federal EITC and have filed their federal taxes.

Even individuals who don’t owe taxes or are not required to file a return might receive a refund if they file through the Michigan EITC. Starting February 13, 2024, the state’s treasury department will start sending out supplemental checks over a period of five to six weeks.

This process is quite similar to receiving a federal IRS tax refund. State authorities advise those who have recently moved to ensure their address is updated with the state treasury via etreas.michigan.gov/iit.

Read also: Michigan GOP Representative blames Gov. Whitmer for tax rates increase and taking more money out of people’s paychecks

“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,” said Whitmer.

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.