Good news for Michigan families! In February 2024, Governor Gretchen Whitmer launched a program offering tax relief through the Working Family Tax Credit. This initiative replaces the state’s previous Earned Income Tax Credit (EITC) with a significantly larger credit, providing much-needed financial assistance to qualified Michigan residents.
This article provides a comprehensive overview of the Michigan Working Family Tax Credit in 2024, including details on eligibility, credit amount, payment dates, and how to check your application status.
What is the Michigan Working Family Tax Credit?
The Michigan Working Family Tax Credit is a refundable tax credit program designed to help low- and moderate-income working families in the state. This program replaces the previous Michigan EITC, which offered a smaller credit based on a percentage of the federal EITC.
Benefits:
- Provides additional tax relief for qualified families.
- This can result in a tax refund or reduce the amount of taxes owed.
- Helps offset the rising cost of living for working families.
Eligibility for the Michigan Working Family Tax Credit
To qualify for the Michigan Working Family Tax Credit, you must meet the following criteria:
- Earned Income: You must have “earned income,” which includes wages from employment, self-employment income, and income from owning a business or farm.
- Michigan Residency: You must be a resident of Michigan for at least part of the tax year.
- Federal EITC Eligibility: While not mandatory, qualifying for the federal EITC typically increases your chances of receiving the Michigan credit.
- Investment Income: Your investment income for the 2023 tax year must be less than $11,000.
- Tax Filing Requirement: You must file a Michigan tax return to receive the credit.
- Citizenship Status: You must be a permanent resident or citizen of the United States.
Important Note: Even if you don’t qualify for the federal EITC, you might still be eligible for the Michigan Working Family Tax Credit. It’s always best to check your eligibility by speaking with a tax professional or using an online tax preparation tool.
Amount of the Michigan Working Family Tax Credit
The Michigan Working Family Tax Credit offers a significantly larger benefit compared to the previous EITC program. Governor Whitmer signed legislation in March 2024, increasing the credit from 6% to 30% of the federal EITC. This translates to an average credit amount of approximately $2,080 for eligible families.
Additionally, the program provided a one-time retroactive payment in February 2024. This payment averaged around $550 and went to roughly 700,000 Michigan families who qualified for the EITC in 2022.
The exact amount of credit you receive will depend on your circumstances, including your income, filing status, and the number of qualifying dependents you claim.
Michigan Working Family Tax Credit Payment Date
The Michigan Working Family Tax Credit is typically issued as part of your tax refund when you file your Michigan tax return.
Here’s a breakdown of the key payment dates:
- February 2024: Distribution of one-time retroactive payments for qualifying families who filed for the EITC in 2022 (average of $550).
- Tax Refund Date: You will receive the remaining credit amount as part of your tax refund when you file your 2024 tax return. The exact date will depend on when you file and how you choose to receive your refund.
Important Note: You will only receive a payment if you have filed a Michigan tax return, even if you believe you qualify for the credit.
How to Check Your Michigan Working Family Tax Credit Status
If you filed a Michigan tax return and are expecting a refund that includes the Working Family Tax Credit, you can check the status of your refund online.
Here’s how:
- Visit the official Michigan Department of Treasury website: https://www.michigan.gov/treasury
- Locate the section for “Individual Income Tax.”
- Look for a link or option to check your refund status. You may need to enter your Social Security number or filing status to access your information.
The website will display the status of your refund, including whether it has been processed and sent.
Additional Tips and Resources
- File your Michigan tax return on time. This ensures you receive the credit as soon as possible. The extended deadline for filing Michigan tax returns in 2024 is June 17th due to severe weather events.
- Consider using a tax preparation service or software. These tools can help you determine your eligibility for