Michigan Residents to Receive $550 in Direct Deposit as Part of Working Families Tax Credit
Some Michigan residents are in for a financial boost as they will be receiving a direct deposit of up to $550.00 USD into their bank accounts. The financial aid, which is part of the Working Families Tax Credit, is expected to benefit more than 700,000 eligible families and is set to arrive as of February 13.
Governor Gretchen Whitmer had announced the Working Families Tax Credit, also known as the Michigan Earned Income Tax Credit (EITC), last year. In addition, the federal credit is projected to increase from 6% to 30% starting in fiscal year 2023.
Eligible residents will be able to receive an additional check for their tax return from last year due to the retroactive application of the stimulus until 2022.
The benefit, according to Governor Whitmer, directly helps half of the children in Michigan and also provides support to parents, who can use the extra money to pay bills, buy food, or school supplies. She also noted that the announcement comes at a time when inflation is decreasing in the United States and take-home pay is increasing.
While the amounts each taxpayer receives may vary, the average payment is estimated to be $550.00 USD. The aim of the Working Families Tax Credit is to provide people with the tax money they have already paid and ultimately reduce the amount of taxes they owe, resulting in more money in their pockets. Additionally, for those who do not owe taxes, both the Michigan EITC and the federal EITC could generate a refund.
The additional income is expected to help Michiganders take care of their families, cover their living expenses, or save for difficult times.
Governor Whitmer expressed that there is still more work to be done, but the announcement will provide relief to eligible residents sooner than expected.