Michigan Families to Receive $550 Tax Credit Checks in February Amid State Tax Benefit Expansion

Governor Whitmer’s recent announcement has stirred anticipation as over 700,000 Michigan households are set to receive tax credit checks averaging $550 in February, following the expansion of state tax benefits earlier this year.

Michigan Families to Receive $550 Tax Credit Checks in February Amid State Tax Benefit Expansion (Photo: Bing)

Tax Credit Expansion and Its Implications

In March, Governor Whitmer signed legislation expanding the Earned Income Tax Credit and exempting pension income from taxation, resulting in significant relief for working families in Michigan.

The checks, a direct result of the Working Families Tax Credit, are part of a new law that aligns the state’s credit with the federal Earned Income Tax Credit at 30 percent, providing families with a combined tax refund of up to $3,150.

Families eagerly anticipate the checks, expected to benefit half of the children in Michigan, representing valuable support for households in meeting essential financial needs.

READ ALSO: Discovering The Reasons You Could Owe Money To The IRS This Tax Season

Working Families Tax Credit: A Boon for Michigan

Like the federal Earned Income Tax Credit, the Working Families Tax Credit provides tax benefits to Michigan families with working members earning below a certain threshold; the amount received depends on household income and the number of children.

Notably, the recent expansion of the Michigan Earned Income Tax Credit, previously at 6%, now mirrors the federal rate of 30%, providing substantial relief for eligible families and reducing their tax obligations.

Read also: IRS Brings Holiday Cheer: $1 Billion Penalty Relief For Taxpayers!