Tax Credit Refund Update: 700,000 Homes to Get Checks

Some 700,000 households in Michigan will receive refund checks in 2024, according to the state’s Governor Gretchen Whitmer.

On Thursday, the Democrat announced that her administration will send checks to the value of $550 on average to thousands of households who qualify for the state’s Earned Income Tax Credit for Working Families (EITC) early next year.

Michigan’s EITC, which is similar to the federal EITC, is a tax benefit for working individuals and families with income below a certain level. It allows them to get money back on taxes they’ve already paid. Earlier this year, Whitmer signed a tax overhaul aimed at providing relief for retirees and low-income earners in Michigan; it expanded the state’s EITC from 6 percent of the federal credit to 30 percent.

While the law wasn’t backed by enough Republicans to be approved before the 2022 tax-filing deadline, it will still be effective for the 2022 tax year only, providing the additional credit included in the EITC expansion to thousands of households.

Michigan Democrats have celebrated the checks as a victory.

“This was one of the first bills our new majority passed for good reason: the EITC has a legacy of being one of the best policies to support work while also helping families out of poverty, making it a win-win for Michigan workers and employers,” Senate Majority Leader Winnie Brinks, a Democrat, wrote in a statement quoted by Michigan Advance, a nonprofit media outlet.

“Whether they use it to pay off holiday bills, make a necessary purchase or take a well-deserved vacation, this is just the latest example of putting the people of Michigan first and improving their quality of life,” House Speaker Joe Tate, also a Democrat, said of the checks.

The checks will be directly mailed by the Department of Treasury to the eligible households starting on February 13, 2024, according to Whitmer. It will then take up to six weeks to conclude the distribution of all the checks.

Eligible households will include individuals who worked and earned under $59,187 and had investment income of $10,300 or below.

If you live in Michigan and you think you are eligible for the checks but have changed address since 2022, you can update your contact information here.

Whitmer said these payments will directly benefit “half the children in Michigan, and moms and dads can use this extra money at tax time to pay the bills, put food on the table and buy school supplies.”