Starting in 2024, about 700,000 households will receive tax refunds of about $550, but it could be as high as $2,229.
The refunds are part of the push for the Earned Income Tax Credit, passed by the Democratic-led state Legislature in March, which expanded the credit from 6 percent to 30 percent.
Currently, the national inflation rate is 3.1%, and finding money for basic needs like food remains a challenge for some Americans.
To qualify for additional funds, residents do not need to submit additional forms. All they had to do was file their 2022 tax return and qualify for the additional state credit.
The stimulus check would be a huge relief
Financial experts say this amount of money could provide significant assistance to Americans. Many of them still face economic difficulties in the current economy, which suffers from high inflation.
“Americans are 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 that isn't really their fault. That's what inflation does to the world over time.”
As inflation continues to impact Americans' daily lives, the younger generation is likely to suffer.
“Unfortunately, it's the younger generations that are going to have it the hardest,” Bauer said. “As you can probably see, it is becoming increasingly difficult to buy a home these days, and if a young person is not prepared or invested enough to keep up with inflation, they will fall behind very quickly.”
Who is the stimulus check for?
Nearly 700,000 Michigan households will be able to receive tax refund checks averaging about $550 starting Feb. 13, Whitmer announced Thursday.
Governor Gretchen Whitmer announced that residents should expect checks to start shipping out on February 13 as the state increases the Earned Income Tax Credit. The Democratic-led state Legislature increased the credit from 6 percent to 30 percent.
“We had hoped this aid would reach people's pockets early this year. But Republicans in the Legislature blocked it from taking effect immediately,” Lt. Gov. Garlin Gilchrist said in 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 has become so expensive,” he said.
Who will get a stimulus check?
“This directly benefits half of Michigan's children. 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 household wages are rising. This shows that 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 will help get relief sooner.” “than was expected.”
How much is a stimulus check?
The exact amount to 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, this includes those with income less than $59,187 and investment income less than $10,300.
While the average amount will be $550, residents could potentially qualify for up to $2,080 for the 2022 tax year and $2,229 for the 2023 tax year.
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