LANSING — Legislation passed early in 2023 goes into effect this year that will lower taxes for seniors and working families. The Working Families Tax Credit along with the repeal of the Snyder-era Retirement Tax will save 1.2 million Michiganders hard earned dollars.
House Bill 4001, was sponsored by State Representative Angela Witwer (D-Delta Township), amends the Income Tax Act to phase out the retirement tax over four years and ultimately deliver an average of $1,000 to 500,000 households. The bills also equalizes the exemption on both public and private pensions. That phase out begins this year.
When signed into law, Governor Gretchen Whitmer stated, “Right now, families are facing the pinch and having tough conversations about how to make ends meet,” said Governor Whitmer. “Today, I am proud to sign a $1 billion tax cut for seniors and working families. Getting this done will help people pay the bills, put food on the table, and afford essentials like groceries and school supplies. It will ensure seniors can keep more of what they’ve earned over a lifetime of hard work and put money back in the pockets of 700,000 working families. I will continue to work with our legislative partners to build on this progress, grow our economy, and lower costs for every Michigander.”
The Working Families Tax Credit will see checks mailed out to families beginning February 13. The checks had to wait a year due to Republicans in the legislature blocking implementation – a tax increase on hard working Michiganders. However, Governor Whitmer worked to ensure families will get the relief as soon as possible.
An announcement last month included a statement from the governor, “By quintupling the Working Families Tax Credit, we’re putting an average of $550 back in the pockets of 700,000 Michigan families ahead of schedule,” said Governor Whitmer. “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. 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. Let’s keep rolling up our sleeves, lowering costs, and growing our economy.”
The Department of Treasury will automatically process checks for Michiganders who submitted their 2022 tax return and confirmed eligibility for the additional state credit. Checks will be mailed on a rolling basis as soon as they are printed. It is estimated to take between five to six weeks to print and distribute all payments.
