Michigan’s $550 Tax Credit Checks – Who Can Expect It?

Tax credit

In the past week, the state of Michigan started to send out checks for refunding the tax credit to its citizens. Approximately 700,000 residents of the state who are in the low-income bracket would be receiving them. The average value of the checks is $550. Eligible recipients are the ones who met the qualifications for the 2022 Earned Income Tax Credit

Further Details Of The Michigan Tax Credit

In March 2023, the state passed a law that saw the EITC of Michigan expand to 30%, from the previous 6%, of the tax credit offered by the federal government. The recipients of this check are the qualifiers for the 2022 EITC. As such, the purpose is to help employed residents whose income is not much. The credit’s size will be dependent on the number of dependent children and the total household income.

For the tax year of 2022, if a married pair had 3 kids, and their combined income was not more than $59,187, then they would be eligible for the credit. For couples or single filers who did not have children, the maximum income threshold stood at $16,840. The uppermost limit of the EITC from the Michigan state is 30% of the tax credit provided by the federal government. It also received a yearly adjustment according to inflation.

The Michigan EITC-eligible residents who have already claimed it while filing their 2022 taxes have already been paid the previously stated 6%. As such, they will also receive checks throughout the week that will provide them with the rest of the 24% tax credit. The check’s average amount is calculated to be about $550. The Treasure Department of Michigan should be sending the checks over the upcoming 5-6 weeks, via mail.