Governor Gretchen Whitmer on Dec. 8 announced that the Michigan Education Trust (MET) is lowering the rates of its contracts so families will realize significant savings the earlier they start saving for a college education.  

"Today's decision by the MET Board lowers costs for working families and helps us put Michiganders first by empowering them to pursue their potential," said Gov. Whitmer. "On top of Michigan Reconnect, Futures for Frontliners and other initiatives, setting the MET contract prices lower today will help us achieve our Sixty by 30 goal to increase the number of working-age adults with a skill certificate or college degree to 60% by 2030 and put more Michiganders on a path to attain the education and skills they need to get better jobs and earn bigger paychecks. I applaud the MET Board for its action, and I urge any family interested in saving for education to start." 

A prudent investment strategy over the last decade has resulted in a record surplus for the MET which can be used to invest in Michiganders. At their meeting on Nov. 16, the MET Board of Directors unanimously agreed that the surplus should be used to help more Michigan children access a college education that will help them prepare to compete in a modern workforce and solve future challenges. MET last offered reduced pricing in 2007.  

"We are constantly striving to deliver to parents, grandparents and others a safe, secure and flexible way to make sure their loved ones meet their higher education goals," said State Treasurer Rachael Eubanks, who also serves on the MET Board of Directors. "While the new price structure will make it easier for those with young children to save, MET will continue to provide families with older children advantages as they work and plan to help them pursue their dreams." 

"As a dad with three young kids, I know that saving for college is a crucial investment for so many Michigan families," said Lt. Governor Garlin Gilchrist II. "A good education enriches a student's life, unlocks better jobs, and results in more lifetime income. Today's action by the Michigan Education Trust will make it easier for working families to save, helping them share in the prosperity we are working hard to build in Michigan and giving students throughout Michigan a chance to explore and live up to their full potential. Through lower MET contract prices and the fully funded Michigan Reconnect and Futures for Frontliners Programs, Governor Whitmer and I are committed to boosting the number of Michiganders with postsecondary degrees or certificates and helping every Michigander achieve their educational goals." 

In addition, MET will offer a $150 match on the first 200 contracts purchased for new beneficiaries in December. Eligibility and rules are posted at SETwithMET.com along with pricing details. Families who make a MET purchase by December 31 will qualify for a deduction on their 2021 Michigan tax returns.  

About the Michigan Education Trust 

Administered by the Michigan Department of Treasury, MET lets families pay today's prices for future higher education costs. Signed into law in 1986, it was the first prepaid tuition program in the nation.  

More than 96% of high school graduates participating in MET have attended a college, university or technical school. 

There are three types of MET plans: the full benefits plan, the limited benefits plan and the community college plan. Families can purchase one plan or mix and match options.  

MET benefits can be used for postsecondary education at universities, colleges and technical schools. If a child chooses to attend a private Michigan school or out-of-state college or university, funds can be directed to that institution. MET benefits may also be transferred to other eligible family members and are refundable if the student does not attend college.  

Parents, grandparents or other family and friends can make MET contributions on behalf of beneficiaries. MET has flexible and convenient payment options that allow purchasers to pay as they go, pay all at once or make monthly payments.  

Contributions to MET plans are tax deductible on Michigan tax returns. Earnings are tax exempt if they are used for higher education. 

More information about MET, including one-on-one consultation sessions with MET experts, is available at SETwithMET.com, 800-MET-4-KID or treasMET@Michigan.gov.  

System upgrades in preparation for next year's individual income tax filing season are underway.

On Thursday, Dec. 9, the state Treasury Department suspended processing state individual income tax refunds due to annual tax processing system upgrades required for the upcoming 2022 tax filing season. Individuals will be able to check the status of their refunds or returns after Jan. 10, 2022.

Most timely filed refunds for tax year 2020 have been processed.

"I want to first and foremost thank taxpayers for their patience as we conduct our annual system upgrade in preparation for the 2022 individual income tax filing season," said Deputy State Treasurer Glenn White, who oversees the state Treasury Department's Revenue Services programs. "As soon as we are operational again in January, we will resume processing tax returns and issuing refunds. We look forward to serving taxpayers in the new year."

At the close of each calendar year, the Michigan Department of Treasury undergoes system maintenance in preparation for the upcoming individual income tax filing season. The Internal Revenue Service and other states have similar end-of-the-year maintenance schedules.

For the 2021 filing season, the state Treasury Department processed nearly 5 million 2020 tax year individual income tax returns, processing 3.4 million refunds and providing an average refund of $634.

Individuals who are eligible for unemployment tax treatment due to the federal American Rescue Plan Act and have yet to adjust their 2020 state individual income tax return are encouraged to file their amended returns as soon as possible. An amended state tax return could reduce the amount of tax owed or provide a tax refund for 2020 state individual income taxes.

To learn more about Michigan's individual income tax, go to Michigan.gov/IIT.

Taxpayers are encouraged to check with current and previous employers and financial institutions to ensure they have up-to-date addresses on file in preparation for the 2022 income tax filing season.

By ensuring employers and financial institutions have the latest address information on file, W-2s and other financial documents can be mailed to the correct address. Incorrect addresses typically lead to information being mailed to the wrong location and could cause delays when filing tax returns.

"Please take a few moments out of your busy holiday schedule to make sure your address is updated with employers and financial institutions," said Deputy State Treasurer Glenn White, who oversees Treasury's Revenue Services programs. "When the individual income tax processing season opens at the beginning of next year, we will be ready to process your return."

Other notable items for Michigan's 2022 individual income tax filing season (2021 tax year):

• Beginning in January 2022, forms and instructions may be viewed and downloaded from www.michigan.gov/taxes. In addition, commonly used forms will continue to be available at Treasury offices, public libraries, northern Michigan post offices and Michigan Department of Health and Human Services county offices.
   
• When tax season begins in late January, taxpayers are encouraged to e-file their state tax returns instead of mailing a paper return. To learn more, go to www.mifastfile.org.
   
• Taxpayers may elect to use direct debit when e-filing their 2021 tax returns.  A direct debit is a tax payment the state Treasury Department electronically withdraws from the taxpayer's bank account using the bank information provided on the electronically filed return.
   
• State income tax filers have the option of making payments electronically using the Michigan Department of Treasury's e-Payments system. Payments can be made by using, electronic payment (eCheck), credit card or debit card.
   
• The ability to claim a refund for the 2017 tax year expires on April 18, 2022.
   
• Taxpayers who have been recent victims of identity theft are asked to report their circumstances to the state Treasury Department. Reporting identity theft helps thwart cybercriminals who attempt to file returns and steal state tax refunds.  To learn more about tax-related identity theft, go to www.michigan.gov/identitytheft.
   
• Individuals who are eligible for unemployment tax treatment due to the federal American Rescue Plan Act and have yet to adjust their 2020 state individual income tax return are encouraged to file their amended 2020 tax returns as soon as possible. An amended state tax return could reduce the amount of tax owed or provide a tax refund for 2020 state individual income taxes.

For the 2021 filing season, the state Treasury Department processed nearly 5 million 2020 tax year individual income tax returns, processing 3.4 million refunds and providing an average refund of $634.

To learn the latest about state of Michigan taxes, go to www.michigan.gov/taxes or follow the state Treasury Department on Twitter at @MITreasury. Federal tax information is available at www.irs.gov.

The Michigan Department of Treasury's Tax Policy Division has issued a December 2021 edition of the Treasury Update. 

Previous editions are available in the Treasury Update archive.

For questions or ideas for future newsletter or Revenue Administrative Bulletin topics, or suggestions for improving Treasury Update, please email Treas_Tax_Policy@michigan.gov.

As 2021 draws to a close and Michiganders plan their end-of-year giving, the Michigan Department of Treasury asks individuals to consider giving the gift of education through a tax-deductible donation to the Fostering Futures Scholarship Trust Fund.

Funds raised through the Fostering Futures Scholarship Trust Fund provide scholarships to young adults who have experienced foster care and are enrolled at a Michigan degree-granting college or university. Awards are paid to the students' college or university to assist with tuition, fees, room, board, books and supplies.

“During these extraordinary times, consider making a small donation to the Fostering Futures Scholarship Trust Fund,” said Diane Brewer, executive director of the Michigan Education Trust. “Students who receive this scholarship can use the money for tuition, housing, books and other college expenses. Often, those individuals exiting foster care have limited resources for a college education. This scholarship provides some help with college expenses when other assistance may be sparse.”

Since 2012, fundraising efforts have totaled approximately $1.3 million, which has been awarded as scholarships. This was done through individual donations, group donations, sponsorships, ticket sales, auctions and many volunteer-based fundraising events.

To make a charitable donation, complete and submit a MET Charitable Tuition Program Contribution form with a check for any dollar amount made payable to the State of Michigan Fostering Futures Scholarship Trust Fund. To make a contribution by credit or debit card visit the Fostering Futures Scholarship Donation Pay Site.

The Fostering Futures Scholarship Trust Fund, housed in the Michigan Department of Treasury, is a Sec. 170 (c) nonprofit organization, therefore Charitable Contribution forms postmarked by Dec. 31 are eligible for a tax deduction in the year they are made.

Approximately 11,500 children are in the Michigan foster care system at any given time. A growing number of Michigan youth are reaching adult age while in foster care and have few resources to attend college when they age out of the system.

To apply, donate or learn more about the Fostering Futures Scholarship, go to www.fosteringfutures-mi.com or call toll-free at 1-888-4-GRANTS (888-447-2687).

In an effort to help local units of government address critical needs in recruiting and training first responders, Gov. Gretchen Whitmer signed Public Act 87 of 2021 that appropriates $5 million to create the First Responder Training and Recruitment Grant Program.

All Michigan cities, villages, townships, counties or fire authorities are eligible to apply for a grant up to $100,000 related to first responder training and recruitment. First responders are police officers, firefighters, Emergency Medical Technicians (EMTs), paramedics and local unit of government corrections officers.

The Michigan Department of Treasury will be working directly with local units of government and other local government partners to implement this grant program.

Key items for local units of government to remember:

• A completed application with detailed information must be received by the Michigan Department of Treasury on or before Feb. 15, 2022.

• The governmental unit must demonstrate how budgeted costs directly relate to recruitment or training of first responders.
• Priority will be given to projects that will be completed by Sept. 30, 2022.
• Projects are funded on a reimbursement basis.
• $2 million will be designated for communities with a per capita property taxable value of less than $15,000, with the remaining funds awarded based on a review of applications and the determination of the effective use of and need for the grant funds.

During the application review process, applicants may be contacted for clarification. The Michigan Department of Treasury reserves the right to award funds for an amount other than requested.

Applications will be selected for funding by the Michigan Department of Treasury based on program purpose, eligibility and criteria. Projects are funded on a reimbursement basis.

To learn more about the First Responder Training and Recruitment Grant Program, go to Michigan.gov/FRG. Questions should be directed to TreasLocalGov@michigan.gov.

The Michigan Department of Treasury's Sterling Heights Office staff pooled resources together to donate to a family in need for the holiday season.

A Pontiac family of five -- which includes three small children -- was chosen from a Volunteers of America list of people needing help over the holidays. Treasury's Sterling Heights team was honored to deliver gifts and donations directly to the family, which included clothing, houseware items, diapers, wipes and paper products, as well as gift cards for Christmas dinner and other necessities. 

The team enjoyed seeing the family's reactions as they delivered the gifts. The 7-year-old also got his first bike, which he excitedly tried to ride with the help of a couple of the donors.

Special thanks to Tammy Leonard who spearheaded the project. Great job everyone!