In a span of 11 days, the Michigan Department of Treasury will initiate the disbursement of payments averaging $550 to eligible taxpayers as part of the expansion of the state’s working families tax credit.
As per the official announcement from the state, an estimated 700,000 households are scheduled to receive disbursements through the expanded tax credit.
This disbursement process is set to occur over a duration of five to six weeks, commencing on February 13.
The forthcoming payments vary, with the amount to be received this month calculated as the difference between the 6% working families tax credit incorporated in an eligible resident’s 2022 tax refunds and the elevated 30% value established by the legislation enacted the previous year.
Michigan’s Enhanced Tax Credit: $3,150 Average Refund
State officials anticipate that the expanded tax credit will result in an average tax refund of $3,150 for eligible residents in 2022.
The enhanced 30% rate for the working families tax credit will be applicable to tax refunds for the years 2023 and beyond.
Governor Gretchen Whitmer, a Democrat from Michigan, emphasized the significance of the extended tax credit in a statement made in December 2023.
She articulated, “By quintupling the working families tax credit, we are allocating an average of $550 back into the finances of 700,000 Michigan families ahead of the anticipated schedule.”
Furthermore, Governor Whitmer underscored the direct positive impact on fifty percent of Michigan’s children.
She noted that parents can leverage this additional financial support during the tax season to fulfill financial responsibilities, ensure sustenance for their families, and procure essential school supplies.
Her remarks highlight the tangible and beneficial outcomes of the expanded tax credit for Michigan residents, particularly families with children, contributing to their economic well-being and easing financial burdens.
Authorities from the state affirm that eligible individuals in Michigan will receive the payment automatically and are not required to complete any additional paperwork. Further details regarding the extended tax credit can be accessed on the Michigan Department of Treasury website.