Starting in 2024, about 700,000 families will receive a tax refund of about $550, but it could reach $2,229.
The refunds are part of a push for the Earned Income Tax Credit, passed by the Democratic-led state Legislature in March, which increased the credit from 6 percent to 30 percent.
Currently, the national inflation rate sits at 3.1 percent, and finding money for basic needs like food remains a struggle for some Americans.
To qualify for the extra money, residents do not need to submit additional forms. All they had to do was file their 2022 tax return and be eligible for the additional state credit.
A stimulus check will be a big relief
Financial experts say this amount could be a big help to Americans. Many of whom still face financial hardship in the current hyperinflationary economy.
“Americans are about as on edge as they can be right now, which is really not a good thing,” said Scott Bauer, CEO of financial education firm Prosper Trading Academy. “Most people certainly don’t have enough savings and some of this isn’t really their fault. This is what inflation does to the world over time.”
While inflation still affects the daily lives of Americans, younger generations are more likely to struggle.
“Unfortunately, the younger generations are the ones who feel it the hardest,” Bauer said. “As you can probably see, buying a home is getting harder and harder these days, and if a young person isn’t prepared to keep up with inflation or doesn’t invest adequately, they will fall behind very quickly.”
Who is the stimulus check for?
About 700,000 families in Michigan will be able to receive tax refund checks averaging $550 starting Feb. 13, Whitmer announced Thursday.
Governor Gretchen Whitmer announced that residents should expect check shipping to begin on February 13 as the state increases its income tax credit. The Democratic-led state legislature increased the loan from 6 percent to 30 percent.
“We had hoped that this relief would reach people’s pockets early this year. But Republicans in the Legislature stopped it from going into effect immediately,” Lt. Gov. Garlin Gilchrist said at a news conference earlier this month.
Gilchrist added that the refunds are intended to support everyday Michigan families. “It’s real money at a time when everything is so expensive,” he said.
Who will get the stimulus check?
“This directly benefits half of Michigan’s children. And moms and dads can use this extra money at tax time to pay bills, put food on the table and buy school supplies,” Whitmer said in a statement.
“Across the United States, inflation is falling and take-home pay is rising. That shows our work in Michigan and President Biden’s efforts in Washington are moving us in the right direction. “We still have more work to do, and today’s announcement It will help to get relief sooner than expected.”
How much is a stimulus check?
The exact amount for Michigan taxpayers depends on your income, marital status, number of qualifying children and your disability status.
Previously, the Earned Income Tax Credit was known as the “Working Families Tax Credit” because it benefited low-income residents. For 2022, that includes people with less than $59,187 in income and less than $10,300 in investment income.
While the average amount will be $550, residents could potentially qualify for up to $2,080 for tax year 2022 and $2,229 for tax year 2023.