Michigan to offer $550 working family tax credit starting next month

Thousands of Michigan households will receive a new credit check next month. The tax credit, officially called the Michigan Working Families Tax Credit, is part of Gov. Gretchen Whitmer’s tax relief package signed into law last year. Eligible households will receive a tax credit of $550.

Michigan Working Family Tax Credit: When can I get it?

In 2023, Governor Whitmer signed a $1 billion tax cut package that included sending working family tax credits to eligible households in Michigan. The tax credit will be retroactive to tax year 2022, and more than 700,000 households are expected to benefit from it.

“This directly benefits half of Michigan’s children, and moms and dads can use this extra money on their tax returns to pay bills, put food on the table and buy school supplies,” said Governor Whitmer.

No application or paperwork is required to receive the Working Families Tax Credit in Michigan, but if you have moved to a new address, you will need to visit this link to update your address. Taxpayers should also visit the same link to ensure they have the correct address for their state.

The Michigan Department of Finance will automatically process payments for taxpayers who file their 2022 tax returns. Households must meet requirements to receive the tax credit. Families who qualify for the credit on their 2022 tax return will undergo a credit check.

The governor recently announced that credit checks will begin on February 13th. These checks will be mailed sequentially. Printing and issuing checks is expected to take 5-6 weeks. The amount of credit each family receives depends on family size and income, but the average credit amount is $550.

How much money is expected?

Initially, Governor Whitmer wanted to send $180 inflation relief checks, but was unable to get the support she needed from Republicans. Then in March, Governor Whitmer signed legislation that quintupled the Michigan Working Families Tax Credit from 6% to 30%, making it identical to the federal Earned Income Tax Credit. This credit will directly impact nearly one million children.

Governor Whitmer wanted to send a working family tax credit to Michigan early last year, but Republican lawmakers delayed the credit for a year. However, the Whitmer administration maintained funding to distribute the checks once the bill fully takes effect on February 13, 2024.

Therefore, eligible families will receive an additional deduction in tax year 2022 to make up the difference between the new tax rate (30%) and the old tax rate (6%). Eligible households do not need to file an amended 2022 tax return to receive this additional credit. Taxpayers should apply if they meet the criteria for the expanded tax credit for tax year 2023.

Some families may be eligible for an additional credit in 2022 and a full credit in 2023. To learn more about the Michigan Working Families Tax Credit, visit this link.