The Working Families Tax Credit was part of the Lowering MI Costs Plan — the biggest tax relief initiative Michigan has seen in decades that cut taxes by $1 billion for the Michiganders who need it most. The plan also overhauled the unfair and unpopular retirement tax. The proposal was designed to combat rising costs and help more Michigan families and seniors save money.
“The issue of affordability is one Michigan families know all too well. Between groceries and gas, child care and doctors’ visits, the cost of living adds up too quick nowadays,” said Sen. Hertel. “As parents struggle to balance budgets while trying to find a few dollars to set aside for rainy days or their children’s college fund, it’s vital that lawmakers take steps to alleviate some of that pressure. With Michigan’s historic 30% match of the EITC, families can keep more of their hard-earned money and build a more secure future for their kids without having to choose between basic necessities.”
Last year, the expanded credit helped approximately 665,000 Michiganders who have the hardest time affording the basics save an average of $890 more per year, resulting in $3,856 in total savings with the federal and state EITCs combined. The benefits of the EITC extend beyond household budgets, helping contribute over $550 million to local economies and small businesses, as families use the additional breathing room to afford necessities like child care, car repairs, new appliances, groceries, and more.
Nearly 1 in 5 eligible households miss out on claiming the EITC. To see if you qualify, visit Michigan.gov/taxes.
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Eliminating taxes on tips, overtime, and social security;
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Slashing red tape and ensuring spouses of disabled veterans can maintain property tax exemptions;
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Continuing to fund the free school meal program, saving families an estimated $1,000 per child every year;
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Making major investments to lower child care costs and expand affordable preschool for four-year-olds, helping families save $10,000 annually; and
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Increasing financial support for those pursuing skilled trades, lowering the cost of a higher degree, and making community college accessible for all students.