More than 700,000 Michigan households are set to benefit from a $1 billion tax-cut package signed into law earlier this year. Michigan Governor Gretchen Whitmer announced on Thursday that these households will receive an average of $550 starting in February of 2024.

The tax cuts aim to quintuple the Working Families Tax Credit, providing much-needed relief to Michigan families. Governor Whitmer emphasized the positive impact this measure will have, stating that it directly benefits over half of the children in the state. The additional funds can be used by parents to cover essential expenses, such as bills, food, and school supplies.

The tax cuts align with broader efforts to alleviate financial burdens faced by families across the United States. As inflation rates decrease and take-home pay increases, Michigan's move, along with President Biden's initiatives in Washington, is seen as a step in the right direction.

When it comes to distribution, Michigan residents can expect to receive their checks from February 13, 2024. These checks will be calculated as the difference between the 6% tax credit already received by Michiganders on their tax returns and the enhanced 30% credit under the new law.

In March, Governor Whitmer signed legislation expanding the Michigan Working Families Tax Credit to 30%, up from 6%. This expansion will result in an average combined tax refund of $3,150 for 700,000 families, benefiting close to one million children, approximately half of Michigan's child population.

Eligible households are encouraged to apply for the expanded tax credit if they meet the criteria this year. Notably, it is possible for Michiganders to receive both the additional Working Families Tax Credit check from their 2022 tax returns and the full 30% tax credit when filing their 2023 tax return.

The Michigan Department of Treasury will handle the processing and delivery of the checks. The payments will be issued on a rolling basis as soon as they are printed. It is estimated that the printing and distribution process will take anywhere from five to six weeks to complete.

Importantly, eligible residents do not need to submit any additional paperwork to receive the tax credit. However, those who have recently moved or have concerns about the accuracy of their addresses can manually update the information through the provided channels.

To qualify for the Earned Income Tax Credit (EITC), U.S. citizens must have earned income below $63,398 and investment income below $11,000. Additionally, individuals must verify their federal EITC eligibility and file federal and Michigan income tax returns to claim the tax credit.

This tax-cut package represents a significant financial boost for over 700,000 Michigan households, providing relief and support for families across the state. As Michigan continues its efforts to lower costs and strengthen the economy, these tax cuts aim to build a more financially secure future for its residents.