Michigan starts tax credit payments to 700K households: What to know

Households to get an average of $550

FILE - A portion of the 1040 U.S. Individual Income Tax Return form (AP Photo/Mark Lennihan, File) (Mark Lennihan, Copyright 2018 The Associated Press. All rights reserved.)

More than 700,000 Michigan households will get a check this year as part of $1 billion in tax cuts signed into law in 2023.

Michigan Gov. Gretchen Whitmer said than the more than 700,000 households will get an average of $550 starting in this month.

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When will Michigan residents get checks?

Beginning February 13, 2024, Michigan will mail checks to families who qualified for the Working Families Tax Credit as part of their 2022 tax return. The checks will be the difference between the 6% tax credit Michiganders received on their tax return and the 30% that is owed to the under the new law.

In March, Whitmer signed legislation quintupling the Michigan Working Families Tax Credit match of the federal Earned Income Tax Credit to 30%, up from 6%. This 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.

Eligible Michiganders should still apply for the expanded tax credit if they meet the criteria this year. It is possible for Michiganders to receive both the additional Working Families Tax Credit check from their 2022 tax return and also receive the full 30% tax credit on their 2023 tax filing when they file next year.

How are payments being delivered?

The Department of Treasury will automatically process checks for Michiganders who submitted their 2022 tax return and confirmed eligibility for the additional state credit. Checks will be mailed on a rolling basis as soon as they are printed. It is estimated to take between five to six weeks to print and distribute all payments.

Eligible Michiganders do not need to submit any additional paperwork to receive the tax credit. However, if an individual has moved frequently or recently and has concerns about their address accuracy, Michiganders can manually update it here.

Who’s qualified for the tax credit?

In order to qualify for the EITC, a U.S. citizen must have “worked and earned income under $63,398,” and have investment income below $11,000. Read more about the tax credit expansion in Michigan here.

To claim the Michigan EITC for Working Families, you must have “earned income” – that is taxable earnings and wages you get by working for someone else or by working for yourself/owning a business/operating a farm.

AND Verify your federal EITC eligibility;

  • If you qualify for the federal EITC, you qualify for the Michigan EITC if: you are a Michigan resident or part-year resident. You do not need positive Michigan taxable income to qualify, or you are a nonresident and you have taxable Michigan income.
  • Use the IRS’ Qualification Assistant to verify your federal EITC eligibility. The federal EITC Qualification Assistant is available in English and Spanish.
  • If you do not qualify for the federal EITC, you do not qualify for the Michigan EITC.

AND file your federal income tax return with the IRS.

  • You must file, even if you do not owe tax or are otherwise not required to file.
  • You must claim the federal EITC.

AND file the Michigan individual income Tax Return (MI-1040).

  • You must file, even if you do not owe tax or are otherwise not required to file.
  • You must claim the Michigan EITC.

Find out how to work with a tax preparer to claim the EITC.


About the Author

Ken Haddad has proudly been with WDIV/ClickOnDetroit since 2013. He also authors the Morning Report Newsletter and various other newsletters, and helps lead the WDIV Insider team. He's a big sports fan and is constantly sipping Lions Kool-Aid.

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