Starting in 2024, 700,000 families in Michigan will earn tax rebates of around $550.
Governor Gretchen Whitmer said residents should expect the checks to start going out on February 13 as the state boosts its Earned Income Tax Credit. The Democrat-run state legislature upped the credit from 6 to 30 percent.
About 700,000 families in Michigan can expect tax rebate checks averaging approximately $550 starting on February 13, Whitmer announced Thursday.
The rebates are a part of a boost to the Earned Income Tax Credit that was passed by the Democrat-led state legislature in March, which expanded the credit from 6 percent to 30 percent.
"We had hoped to have this relief be in people's pockets earlier this year but Republicans in the legislature blocked that from going into effect immediately," Lt. Gov. Garlin Gilchrist said in a press conference earlier this month.
Gilchrist added that the rebates are intended to support the everyday Michigan family.
"It's real money at a time when stuff is so expensive," he said.
Today, the nationwide inflation rate stands at 3.1 percent, and finding the money for essentials like groceries remains a struggle for some Americans.
To qualify for the extra cash, residents don't need to submit any additional forms. All they had to do was submit their 2022 tax return and be eligible for the extra state credit.
The specific amount Michigan taxpayers depends on your income, filing status, the number of qualifying children as well as your disability status.
Previously, the earned income tax credit was known as the "Working Families Tax Credit" because it benefits low-income residents. For 2022, that included those with an income below $59,187 and investment income lower 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.
"This directly benefits half the children in Michigan, and moms and dads can use this extra money at tax time to pay the bills, put food on the table, and buy school supplies," Whitmer said in a statement.
"Across the United States, inflation is decreasing and take-home pay is increasing, proving 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 you some relief sooner than expected."
Financial experts say this amount of money could go a long way in helping Americans, many of whom are still cash-strapped in the high-inflation economy.
"Americans are stretched thin as much as they possibly could be right now which is not really a good thing," Scott Bauer, CEO of financial education firm Prosper Trading Academy, told Newsweek. "Most people definitely do not have enough savings in place and part of it is not really their fault. This is what inflation does to the world over time."
With inflation still affecting Americans in their daily lives, the younger generation is more likely to struggle.
"Sadly enough, the younger generations are the ones that are going to experience it the hardest," Bauer said. "As you probably can see, it's getting harder and harder to buy a house these days and if someone young isn't prepared or properly invested to keep up with inflation, they're going to fall behind really quick."
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