Major Tax Credit Issued To 700,000 Americans

To raise Michigan’s Earned Income Tax Credit from its current level of 6% to 30% of the federal credit, a new state statute was created to distribute more stimulus funds.

Over 700,000 Michigan residents will receive checks after Governor Gretchen Whitmer’s March 2018 passage of $1 billion in tax cuts. As the state increases its Earned Income Tax benefit, Witmer indicated that residents should anticipate the checks to begin being sent out on February 13.

Citizens who work but do not have high incomes may benefit from this credit, determined by family income and dependent children.

According to the Internal Revenue Service, those Michiganders whose annual income is below $63,398 and whose investment income is below $11,000 may be qualified for the federal Earned Income Tax Credit.

Households in the state would have to pay less in taxes due to the policy shift. The reduced tax burden will be reflected in the mailed checks beginning February 13. Whitmer’s original plan was inflation relief checks for $180, but he couldn’t get enough Republicans to support it.

But the California Senate rejected the plan on March 1 and passed the bill without the $180 checks, saving the state about $800 million. On average, each family will get $550 in benefits; however, the exact amount can vary somewhat.

The payments will be sent out on a rolling basis over the next five to six weeks by the Michigan Department of Treasury, starting this week. The Michigan Department of Treasury will determine who is eligible. No further steps will be taken from workers who submitted their 2022 tax returns. No additional steps will be required of qualified taxpayers; they will get the paper checks automatically.