Tax season 2024: Here's how eligible Michigan residents can claim the Working Families Tax Credit
(CBS DETROIT) - Tax season is here, and Michigan residents are reminded to claim the federal and state Earned Income Tax Credit when they file their 2023 individual income tax returns.
People who qualify for the Earned Income Tax Credit, which is also known as the Working Families Tax Credit, could pay less in both federal and state taxes, pay no tax or get a tax refund.
In 2023, Gov. Gretchen Whitmer signed legislation that increased the average refund to more than $600.
"The Working Families Tax Credit, also known as the EITC, delivers an average combined refund of $3,150 to 700,000 Michigan families," said Whitmer. "Last year, with our new legislative majority, we quintupled Michigan's credit, which will put hundreds more dollars in people's pockets starting this year. The Working Families Tax Credit directly benefits half the kids in Michigan, and moms and dads use the extra money at tax time to pay the bills, put food on the table, and buy school supplies. From small towns to downtowns, the Working Families Tax Credit empowers families across Michigan. I encourage every eligible Michigander to take advantage of the credit when you file this year."
Even if no tax is owed or they have no requirement to file a tax return, that person must still file a federal income tax return if they meet the requirements to receive the Working Families Tax Credit.
If they receive it, then the state will provide an extra 30% credit when that person files their state income tax return.
According to a release for Whitmer's office, the amount a person will receive from their federal return is based on income, their filing status and the number of children they claim as dependents.
"I encourage Michiganders to check with a reputable tax preparer or use tax preparation software to see if they can claim the EITC on their federal and state tax returns," said State Treasurer Rachael Eubanks. "The extra income provided by this tax credit can help working families care for their children and meet living expenses. It's important for working families to see if they're eligible. Please seek out tax preparation help if you think you qualify and need assistance."
In addition, Whitmer's office says in mid-February officials will start sending out supplemental checks to residents beginning in mid-February.
These are 24% adjustment checks that are part of $1 billion in tax cuts that Whitmer signed into law in 2023. They will be sent to residents who qualified for the Working Families Tax Credit on their 2022 tax returns.