February 2024 Michigan Tax Assessments: Discover Recipients of the Working Family Tax Credit Refund

This week marks the commencement of a significant initiative in Michigan, as approximately 700,000 low-income residents are slated to receive tax credit refund checks. These checks, with an average value of around $550, are allocated to individuals who qualified for the Earned Income Tax Credit (EITC) in the tax year 2022.

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The issuance of these checks follows the enactment of a state law in March of the preceding year, which saw an expansion of Michigan’s Earned Income Tax Credit from 6 percent to 30 percent of the federal tax credit.

Who stands to benefit from these checks? The recipients are taxpayers who met the eligibility criteria for the Earned Income Tax Credit in 2022. The EITC is specifically designed to provide assistance to residents who are employed but earn modest incomes. The amount of the credit varies depending on the household’s income level and the number of dependent children.

For the tax year 2022, a married couple with three children could qualify if their combined earnings were below $59,187, while individuals without children could be eligible if their income fell below $16,480.

What is the expected payout? The maximum Michigan EITC stands at 30 percent of the federal EITC, and it is subject to annual adjustments based on inflation. Taxpayers who were eligible for the Michigan Earned Income Tax Credit and claimed it during their 2022 tax filing already received a 6 percent credit. The checks being distributed this week will supplement the remaining 24 percent of the tax credit. On average, recipients can anticipate a refund of approximately $550.

When can recipients anticipate receiving their checks? The Michigan Department of Treasury plans to dispatch the supplemental checks via mail on a rolling basis over the course of the next five to six weeks, starting this week.

Is any action required to receive the refund checks? Eligible taxpayers need not take any additional steps to receive their paper checks. The Michigan Department of Treasury will automatically identify and send checks to individuals deemed eligible based on their 2022 tax return submissions.