$219M in tax credits sent to Michigan families since mid-February

Since a new tax law took effect in Michigan on Feb. 13, the state has already made significant progress in issuing tax credit checks to nearly 300,000 low-income families.

The Michigan Department of Treasury estimates it will take five to six weeks to mail checks to the more than 700,000 Michigan households that were eligible for the Michigan earned income tax credit on their 2022 tax returns. State Treasurer Rachael Eubanks said in a statement that her team is working to ensure that Michigan households receive their supplemental checks while the department is simultaneously processing tax returns.

“These checks are being sent in batches due to seasonal mailing demands,” Eubanks said. “We anticipate this mailing will be completed in the next few weeks and ask eligible taxpayers to be patient as we work as fast as practical to get your check to you.”

Eligible Michiganders should expect to receive, on average, an additional $550 via mailed check. The state has allocated more than $219 million for the checks that have already been issued, according to a press release from the governor’s office.

The earned income tax credit, which began as a federal policy, is a refundable tax credit for low-income workers. The amount received depends on factors that include a taxpayer’s filing status, number of children, and disability status.

Of the 30 U.S. states and cities with their own version of the EITC, Michigan’s ranked among the lowest as a percentage before Democrats changed the state’s tax law last year to raise it from 6% to 30%.

The checks make up the difference between the previous 6% tax credit and the 30% owed under the new law, which applies retroactively to the 2022 tax year.

Many families will feel a great sense of relief when they receive their checks, Gov. Gretchen Whitmer said in a statement. Not only will the new tax laws save Michigan residents money on their taxes, she said, but it will provide extra financial support that will help families pay bills and afford basic necessities such as groceries.

In order to go into immediate effect after being signed into law last March, the bill would have needed to be passed by two-thirds of lawmakers in both chambers of the Legislature. But not enough Republicans joined the Democratic majority in supporting the tax credit, which prevented it from going into effect until this year.

Republicans took issue with a provision that would have sent out $180 rebate checks to all Michigan residents for their 2022 tax returns, which would have drained a COVID-related budget surplus and avoided an automatic rollback of the state’s income tax rate that is required by a 2015 GOP road funding bill.

The Michigan Department of Treasury is automatically processing checks for residents who submitted their 2022 tax return and confirmed eligibility for the EITC. Eligible Michiganders don’t need to submit any additional paperwork to receive the additional tax credit. If you believe you’re eligible and have not received a check by April 1, the state encourages you to contact the treasury department.