Michigan tax credit will be sent to 700,000 families with an average of $550 being issued
LANSING, Mich. (FOX 2) - More than 700,000 Michigan households can expect to receive checks next year that will include an average of $550 for families.
Checks from the Working Families Tax Credit are expected to be sent to families in February 2024, the governor announced Thursday.
The checks are the result of a new law signed last March that boosted the state's Working Families Tax Credit to match the federal government's Earned Income Tax Credit of 30%. Families can expect a combined tax refund of $3,150.
The governor said the tax credit checks "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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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 tax credit checks will be mailed out on Feb. 13, 2024.
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.