Starting in 2024, about 700,000 families will receive tax refunds of about $550, but they can be as high as $2,229.
The refunds are part of the Earned Income Tax Credit initiative passed by the Democratic-led state legislature in March, increasing the tax credit from 6 percent to 30 percent.
Currently, the national inflation rate is 3.1 percent, and some Americans still find it difficult to find money for basic necessities like food.
To be eligible for the additional money, residents do not need to submit any additional forms. All they had to do was file their 2022 tax return and be eligible for the additional government credit.
The stimulus check would be a huge relief
Financial experts say this amount of money could be a big help to Americans. Many of them still face economic difficulties in the current hyperinflationary economy.
“Americans are as nervous as they could be right now, which is really not a good thing,” said Scott Bauer, CEO of financial education company Prosper Trading Academy. “Most people definitely don’t have enough savings and some of that isn’t really their fault. That’s what inflation does to the world over time.”
With inflation still impacting Americans' daily lives, the younger generation is more likely to struggle.
“Unfortunately, the younger generations will be hit the hardest,” said Bauer. “As you can probably tell, it is becoming increasingly difficult to buy a home these days and if someone who is young is not prepared or invested enough to keep up with inflation, they will find themselves falling behind very quickly. “
Who is the stimulus check for?
Nearly 700,000 Michigan families will be eligible to receive tax refund checks worth an average of about $550 starting Feb. 13, Whitmer announced Thursday.
Gov. Gretchen Whitmer announced that residents should expect checks to be mailed on Feb. 13 as the state increases its earned income tax credit. The democratically led state parliament increased the loan from 6 percent to 30 percent.
“We were hoping this relief would get into people’s pockets earlier this year. But Republicans in the House prevented it from taking effect immediately,” Lieutenant Governor Garlin Gilchrist said at a news conference earlier this month.
Gilchrist added that the refunds are intended to support everyday families in Michigan. “It’s real money at a time when everything is so expensive,” he said.
Who will receive the stimulus check?
“Half of the children in Michigan directly benefit from this. And moms and dads can use that 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. This shows that our work in Michigan and President Biden's efforts in Washington are moving us in the right direction. “We still have work to do and today’s announcement will help ensure we get relief sooner than expected.”
How much does the stimulus check cost?
The specific amount for Michigan taxpayers depends on your income, marital status, number of eligible children, and disability status.
Previously, the earned income tax credit was known as the “working family tax credit” because it benefits low-income residents. For 2022, this included individuals with income of less than $59,187 and investment income of less than $10,300.
While the average amount is $550, residents could potentially be eligible for up to $2,080 for the 2022 tax year and $2,229 for the 2023 tax year.