$550 Working Families Tax Credit from Michigan Coming Next Month

Published on

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

Working Families Tax Credit from Michigan: when to expect it

In 2023, Gov. Whitmer signed into law a $1 billion tax cut package that includes sending the Working Families Tax Credit from Michigan to eligible households. The tax credit is retroactive to the 2022 tax year, and more than 700,000 households are expected to benefit from this credit.

“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,” Gov. Whitmer said last month.

No application or paperwork is required to get the Working Families Tax Credit from Michigan, but if anyone has moved to a new address, they must update their address by visiting this link. Also, taxpayers need to visit the same link to check whether the state has their correct address.

Michigan’s Department of Treasury will automatically process the payment for taxpayers who submitted their 2022 tax return. Households need to meet the requirements to qualify for the credit. Families who qualified for the credit on their 2022 tax returns will receive the credit checks.

The governor informed recently that the credit checks will start going out on February 13. These checks will be mailed out on a rolling basis. The printing and issuance of checks are expected to take five or six weeks. The amount of credit each family receives would depend on the family size and income, but the average credit amount will be $550.

How much money to expect?

Initially, Gov. Whitmer wanted to send a $180 inflation relief check, but she was unable to get needed support from Republicans. Then, in March, Gov. Whitmer signed legislation quintupling the Michigan Working Families Tax Credit from 6% to 30% to equal the federal Earned Income Tax Credit. The credit will directly impact almost one million kids.

Gov. Whitmer wanted to send the Working Families Tax Credit from Michigan earlier last year, but Republican lawmakers delayed the tax credit for a full year. The Whitmer Administration, however, retained the funding to distribute the checks when the legislation fully takes effect on Feb. 13, 2024.

So, eligible families will receive an extra credit for the 2022 tax year to make up for the difference between the new rate (30%) and the old rate (6%). Eligible households don’t need to file an amended 2022 tax return to get this extra credit. Taxpayers need to apply if they meet the criteria for the expanded tax credit for tax year 2023.

Some families could qualify for the extra credit for 2022 and the full credit for 2023. Visit this link to know more about the Working Families Tax Credit from Michigan.