Earlier this term, I was proud to vote to expand the Michigan Earned Income Tax Credit (EITC) for Working Families; it had been cut to 6% in 2012 despite proven benefits for working families. The EITC is a tax credit for working individuals with income below a certain level. The Michigan tax credit is similar to the federal EITC. The Lowering MI Costs Plan quintupled the Michigan EITC from 6% of the federal EITC to 30%, significantly expanding savings for Michigan taxpayers. 

The expanded Michigan EITC is retroactive to the 2022 tax year. The law took effect on Feb. 13. 

Tax Year 2022 (Jan. 1, 2022 – Dec. 31, 2022; due April 18, 2023)

Federally eligible individuals who claimed the Michigan EITC on their 2022 MI-1040 received the original 6% credit. Between tax year 2022 and tax year 2023, the Michigan Department of Treasury addressed impacted returns. As of Feb. 13, Treasury is issuing supplemental check payments over a 5-to-6-week period to provide eligible taxpayers with the remaining 24% portion of the credit. 

These paper check payments will be issued to the most recent address on file with the Treasury. If you have moved frequently or recently and have concerns about your address accuracy, you can manually update it through IIT eService

Tax Year 2023 (Jan. 1, 2023 – Dec. 31, 2023; due April 15, 2024)

Michigan’s 2023 tax return, forms, and instructions (e-file and paper format) reflect the expanded Michigan EITC created in the new law. Treasury will address impacted returns submitted prior to Feb. 13 and prepare them for release so that Michigan EITC eligible individuals can claim the expanded credit. 

Please go to michigan.gov/taxes/iit/eitc for more information.