Michigan state tax refunds: Nearly 300,000 Working Families Tax Credit checks sent out
DETROIT (FOX 2) - Michigan taxpayers have received more than $219 million as part of the Working Families Tax Credit, the state announced Monday.
Nearly 300,000 checks worth an average of $550 each have been sent out. More than 700,000 families are expected to get checks.
Earlier this year, the state expanded the Michigan Earned Income Tax Credit from 6% to the federal rate of 30%. The money is a credit for taxes someone has already paid and reduces the amount that a family would owe.
"My team is working hard to ensure that 700,000 Michigan households receive their supplemental checks while simultaneously processing tax returns," said State Treasurer Rachael Eubanks. "These checks are being sent in batches due to seasonal mailing demands. We anticipate this mailing will be completed in the next few weeks and ask eligible taxpayers to be patient as we work as fast as practical to get your check to you."
That's not the only check that eligible families will receive. When the state expanded the credit, they included the 2022 tax year as well. Anyone who would have been eligible in that year under the current guidelines will also receive a supplemental check.
What is the Working Families Tax Credit?
The Working Families Tax Credit is the name the governor gave for the tax benefit that Michigan families receive if they have working individuals with income below a certain level.
It's similar to the Earned Income Tax Credit, which is the federal government's version of the same benefit.
The amount families receive is based on the household's salary and the number of children they have. For example, a family with two parents that earn no more than $59,478 and has two qualifying children can receive up to $6,604 according to tables made available by the IRS.
Earlier this year, the state expanded the Michigan Earned Income Tax Credit from 6% to the federal rate of 30%.
The money is a credit for taxes someone has already paid and reduces the amount that a family would owe.
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When will I receive my check?
The state began mailing out the checks on Feb. 13, 2024. All checks are expected to be mailed within within five to six weeks of this date.
If you don't receive your Earned Income Tax Credit supplemental check by April 1, contact the Michigan Department of Treasury.
What about my 2022 tax return
The tax credit expansion was written to include a family's 2022 tax returns as well. The retroactive function means even though the law won't take effect until 2024, it will include a tax credit someone was eligible to receive in 2022.
Eligible individuals who claimed the credit received the original 6% credit. When they receive their 2023 tax credit check, they will also receive a check that will make up the difference of the original rate and the new 30% tax rate - or 24%.
You don't need to file an amended 2022 income tax return to receive the extra money.