Stimulus Update: Over 700K Families in This State Are Set To Receive Average $550 Payment in 2024
More than 700,000 Michigan households will get a nice financial boost beginning in February when the state starts sending out tax credit checks averaging $550 each as part of $1 billion in tax cuts Gov. Gretchen Whitmer signed into law earlier this year.
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The Working Families Tax credit checks will be distributed starting on Feb. 13, 2024, CBS Detroit reported. The money will be sent to families who qualified for the credit on their 2022 tax returns.
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As part of the legislation, the credit was increased to 30% from 6% of the federal Earned Income Tax Credit (EITC) beginning with the 2023 tax year. It also applied retroactively to 2022, according to Michigan Advance. This means eligible Michiganders can receive both an additional check from their 2022 tax return and the full 30% tax credit on their 2023 tax filing when they file next year.
“By quintupling the Working Families Tax Credit, we’re putting an average of $550 back in the pockets of 700,000 Michigan families ahead of schedule,” Whitmer said in a statement. “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.”
As Michigan Advance noted, IRS rules state that in order to qualify for the EITC, a person must have worked and earned income under $63,398 and have investment income below $11,000. They must also be a U.S. citizen and have a valid Social Security number.
“The expansion will deliver an average combined tax refund of $3,150 to 700,000 families, directly impacting nearly one million kids — almost half the kids in Michigan,” said a press release issued by Whitmer’s office after the legislation was signed in March.
The higher credit was greeted with cheers by working family advocates.
“For many years, we have advocated for an increase to the state’s Earned Income Tax Credit, and we are thrilled to see Governor Whitmer sign this substantial boost for working families into law today,” Dr. Darienne Hudson, president and CEO of United Way for Southeastern Michigan, said. “Raising Michigan’s EITC to 30% of the federal credit will directly benefit more than 2 million Michigan children by providing a meaningful increase to working families’ incomes, many of whom are still struggling in the wake of the pandemic and whose budgets have been strained by inflation.”
Michigan residents who are eligible for the credit don’t need to submit any additional paperwork, CBS Detroit reported. Those who are eligible should apply for the expanded tax credit to see if they meet the criteria this year. Residents can receive the additional check from their 2022 tax return and the 30% tax credit when they file next year.
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This article originally appeared on GOBankingRates.com: Stimulus Update: Over 700K Families in This State Are Set To Receive Average $550 Payment in 2024
