Low Income Residents in Michigan to Start Receiving Big Checks
As part of the $1 billion in tax cuts signed into law in 2023, more than 700,000 Michigan families will receive checks this year. Gov. Whitmer said that each of those households are supposed to receive an average of about $550 beginning this month. The Michigan Work Families Tax Credit will begin to be mailed to families starting February 13, 2024.
Under the new law, Michiganders will receive checks for the difference between the 6% tax credit they received on their tax returns and the 30% that is due. Michigan’s Working Families Tax Credit was quintupled from 6% to 30% by Whitmer in March of 2023. A combined tax refund of $3,150 will be provided to 700,000 Michigan families, directly benefiting nearly one million kids – almost half of Michigan’s children.
Low Income Residents in Michigan to Start Receiving Big Checks
To the question on everybody’s mind, how will you receive the money. Michiganders who have submitted their 2022 tax returns and confirmed their eligibility for the additional state credit will receive checks automatically from the Department of Treasury. Checks will be mailed as soon as they are printed. According to multiple sources it is estimated to take between five to six weeks for all checks to be printed and distributed.
In order to be eligible for the EITC the applicant must be an American citizen and have a gross income of under $63,398 and no investment income over $11,000. EITC eligibility for Michigan Working Families requires “earned income” – earnings and wages you earn from either working for someone else or working for yourself/owning a business/operating a farm. Michigan residents and part-year residents who qualify for the federal EITC also qualify for the Michigan EITC. In order to qualify, you do not need a positive Michigan taxable income, or you are a nonresident who has taxable Michigan income.
For more information regarding eligibility or any other question you may have log on to https://www.michigan.gov/taxes/iit/eitc
Tax Deductions and Credits That Could Save You Big
Standard deduction amounts
The standard deduction for 2023 is $13,850 for single or married filing separately; $27,700 for married couples filing jointly or qualifying surviving spouse; and $20,800 for head of household. “If you’re married filing separately, you can’t take the standard deduction if your spouse itemizes. You must both choose the same method,” the IRS says.
To find the standard deduction if you’re over 65 or blind, go here. To find the standard deduction if you’re a dependent on someone else’s tax return, go here.
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Deductible expenses whether you take the standard deduction or itemize
According to the IRS, you can deduct these expenses whether you take the standard deduction or itemize:
Alimony payments
Business use of your car
Business use of your home
Money you put in an IRA
Money you put in health savings accounts
Penalties on early withdrawals from savings
Student loan interest
Teacher expenses
For some military, government, self-employed and people with disabilities: work-related education expenses
For military servicemembers: moving expenses
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Deductible expenses if you itemize
According to the IRS, you can deduct these expenses if you itemize:
Bad debts
Canceled debt on home
Capital losses
Donations to charity
Gains from sale of your home
Gambling losses
Home mortgage interest
Income, sales, real estate and personal property taxes
Losses from disasters and theft
Medical and dental expenses over 7.5% of your adjusted gross income
Miscellaneous itemized deductions
Opportunity zone investment
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Frequently asked questions
Tax season can be a confusing time. There are lots of bits and piece that you have to put together. That said, the IRS has a very helpful page with frequently asked questions. Find the list of questions and answers here. As always, it’s also a good idea to get a professional to help with any questions.
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