After Governor Gretchen Whitmer approved $1 billion in tax cuts last March, Michigan is set to provide stimulus checks to over 700,000 households. The distribution of these checks will commence on February 13 as part of the state’s enhanced Earned Income Tax benefit.
The state law, aimed at bolstering Michigan’s Earned Income Tax Credit from 6% to 30% of the federal tax credit, targets individuals with annual incomes below $63,398 and investment income under $11,000, as per the Internal Revenue Service guidelines.
Recipients will primarily consist of taxpayers eligible for the Earned Income Tax Credit in 2022, which is determined based on household income and the number of dependent children. This credit is designed to assist individuals who work but have lower incomes.
Governor Whitmer’s Policy Initiative
Governor Whitmer’s policy initiative seeks to reduce the tax burden on households in the state. Beginning February 13, checks reflecting the reduced tax liability will be mailed out. While Whitmer initially proposed issuing $180 in inflation relief checks, the state Senate rejected this proposal on March 1, approving the law without the additional checks and saving approximately $800 million. The average benefit per family is expected to be around $550, although individual amounts may vary.
Potential Stimulus Check Amounts
Formerly known as the “Working Families Tax Credit,” the earned income tax credit targets low-income citizens, including individuals with incomes under $59,187 and investment income under $10,300. Depending on factors such as income level, marital status, number of children, and handicap status, some families may receive payments of up to $2,080 in 2022 and $2,229 in 2023.
Related: Big Bucks Incoming: One State’s Residents Set to Receive $260 Stimulus Payments!
Impact and Delivery of Stimulus Checks
Governor Whitmer asserts that these stimulus checks will directly benefit numerous Michigan families, assisting them in covering expenses, purchasing essentials, and meeting various financial needs. Michigan State’s decision to increase the Working Families Tax Credit will inject an additional $550 into the pockets of 700,000 families ahead of schedule, providing much-needed relief amid ongoing economic challenges.
The Michigan Department of Treasury will initiate the distribution of checks this week, with deliveries expected to occur over the next five to six weeks. Eligible taxpayers will automatically receive paper checks based on information from their 2022 tax returns, requiring no further action. Individuals who have changed addresses can update their information on the official Michigan eServices portal to ensure timely delivery of their checks.