More Than 700k Households Should Receive $550 Tax Credits In 2024

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tax credit

In Michigan, over 700,000 families can expect a handy boost for their finances in the coming February. The state will begin to send out checks for tax credits that average about $550 per household. The payment is a component of tax cuts worth $1Bn that Governor Gretchen Whitmer had approved as law earlier in 2023. It is known as the Working Families Tax Credit. The starting date for the distribution will be February 13th, 2024 according to CBS Detroit.

The Working Families Tax Credit

The money under the tax credit will go to families who were eligible for the program according to their tax returns filed for 2022. The legislation increased the credit from 6% to 30% of the EITC, starting for the tax year of 2023. As per Michigan Advance, the increase saw a retroactive application as well for 2022. As such, Michigan citizens who are eligible can get an extra check for their tax return for 2022 as well as the entire tax credit of 30% for their tax return for 2023, when they do it next year.

Whitmer explained that quintupling this tax credit will return $550 on average to the 700,000 households much earlier than scheduled. As such, 50% of children in Michigan will be benefitted. Fathers and mothers will be able to use the bonus money during filing time to cover their bills, purchase supplies for school, and most importantly, ensure food is on their table.

As per the reports of Michigan Advance, the IRS rules for a person to be EITC-eligible, an individual must have worked and earned at most $63,398 for an entire year. Their income from investments must also be less than $11,000. Finally, they must be citizens of the country and possess valid numbers of Social Security.