November 2022
 The Michigan State Capitol Holiday Tree greets visitors during a brisk late November afternoon. (Courtesy Photo/Michigan Department of Treasury)
State Treasurer Rachael Eubanks recently announced an opportunity for Michiganders to serve their communities through the 2023 Volunteer Income Tax Assistance (VITA) program.
"VITA is an excellent opportunity to help hardworking Michiganders receive the federal and state tax benefits they are entitled to receive," State Treasurer Rachael Eubanks said. "We need more volunteers to be stationed at sites statewide, so we can connect even more taxpayers with these critical VITA services. This program is a great example of neighbors helping neighbors and giving back to the community."
VITA volunteers are community members trained to help their neighbors file their taxes for free and claim every tax credit available to them. Their service supports workers in caring for their families, withstanding unexpected economic changes, and bolstering their overall financial well-being.
VITA programs save Michiganders approximately $19.5 million annually in tax preparation fees alone and place $64 million in the pockets of Michiganders.
Free tax preparation services are available to people who generally make $60,000 or less, persons with disabilities, the elderly, and limited English-speaking taxpayers who need assistance in preparing their own tax returns.
"This year, there are more opportunities than ever to volunteer with VITA," said Brian Rakovitis, Director of Economic Inclusion at the Community Economic Development Association of Michigan (CEDAM). "No tax experience is needed, the training for IRS certification is free, and the hours are flexible."
Because no tax experience is required, volunteers assisting with the VITA Program come from all walks of life: working professionals, retirees, college and high school students, IRS employees, and people who just want to contribute to their community.
VITA volunteers are assigned to work with a sponsoring organization – first to receive training and then to begin volunteering at a convenient location. Training is offered both online and in the classroom. Tax sites are generally open nights and weekends, and the hours are flexible, allowing volunteers to choose time slots that fit their schedules. Individuals can sign up now through the IRS.
"It's really been a wonderful experience," says Jim H., a volunteer tax preparer for the Heart of West Michigan United Way. "At the end of the day, I get to go home knowing I was able to help some of my friends and neighbors in our small town."
Learn more
To Volunteer
https://www.opssupport-surveys.com/se/2511374571F86012
Volunteer Information
https://www.irs.gov/individuals/irs-tax-volunteers
Taxpayer Assistance Information
https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers
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Gov. Whitmer Announces Nearly 210,000 Michigan Households Are Receiving Additional Home Heating Credit Payment
Gov. Gretchen Whitmer recently announced that nearly 210,000 Michigan households who received Home Heating Credits for the 2021 tax year are receiving an additional one-time payment this month to help keep their homes warm.
"No one should have to choose between keeping the heat on or paying for other essentials like rent, prescription medication, or groceries, but far too many Michiganders face those kinds of choices. That’s why I’m proud to announce more relief from our Home Heading Credit, which will keep families warm by covering heating costs,” said Governor Whitmer. “As we enter colder months, these extra dollars back in people’s pockets will save families money and help them meet their basic needs. I’ll work with anyone to save people money and ensure they have access to the basics that we all deserve."
The additional payment is the result of remaining Fiscal Year 2021-2022 federal Low-Income Home Energy Assistance Program (LIHEAP) block grant dollars allocated to the Home Heating Credit program. The recipients of the additional credit are households that filed a 2021 MI-1040CR-7 Home Heating Credit Claim and qualified for the credit.
Households with seniors, disabled individuals or children under 5 years old are receiving $575. Other eligible households are receiving $380.
Treasury has mailed checks to all households that are eligible for the supplemental Home Heating Credit. Recipients are expected to apply the LIHEAP payment to their household heating costs.
"The Michigan Department of Treasury has processed all payments and the checks have been sent through the U.S. Postal Service,” State Treasurer Rachael Eubanks said. "If you already received a Home Heating Credit payment this year, no further action is required. A payment should be headed to your mailbox soon.”
Anyone with questions about their Home Heating Credit can contact Treasury at: Michigan Department of Treasury, Customer Contact Section, P.O. Box 30058, Lansing, MI 48909, or call 517-636-4486.
Home Heating Credit applications will again be accepted when the Individual Income Tax filing season begins in early 2023. Additional information can be found on the Home Heating Credit website.
“The Michigan Department of Health and Human Services (MDHHS) is pleased to be able to work with our partners at the Michigan Department of Treasury so that Michigan residents can have easy access to this additional Home Heating Credit,” MDHHS Director Elizabeth Hertel said. “These payments will allow families to spend more of their money on other necessities such as food in addition to ensuring they can pay their utility bills.”
For information regarding heating assistance and other forms of emergency relief, please visit the MDHHS website.
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Watch Out for Holiday Scams and Protect Personal Information as Tax Season Nears
The Internal Revenue Service, the Michigan Department of Treasury and other Security Summit partners recently kicked-off the 7th National Tax Security Awareness Week with information for taxpayers on how to avoid scams and protect sensitive personal information.
With the holiday season now in full swing, the period presents a prime opportunity for identity thieves to try stealing personal financial information, which also could be used to potentially file fraudulent tax returns. People can face risks if they're shopping online and using publicly accessible Wi-Fi. And the Summit reminds people that fictitious text scams with "smishing" schemes continue during this period.
"With holiday shopping starting and the 2023 tax season quickly approaching, many people will be using laptops and personal devices to share sensitive financial information," said IRS Acting Commissioner Doug O'Donnell. "In the months ahead, these same devices will be used to complete millions of tax returns by both taxpayers and tax professionals, making the holiday season the perfect time to take steps to protect your valuable information and watch out for scams."
The Summit partners urged people to take extra care while shopping online or viewing emails and texts, especially during the holiday season when criminals are very active. The Security Summit reminds everyone to stay safe while holiday shopping with the following considerations:
- Shop at sites where the web address begins with "https" – the "s" is for secure communications and look for the "padlock" icon in the browser window.
- Don't shop on unsecured public Wi-Fi in places like a mall.
- Keep security software for computers, tablets and mobile phones updated.
- Protect the devices of family members, including young children, older adults as well as less technologically savvy users.
- Make sure anti-virus software for computers has a feature to stop malware, and that there is a firewall enabled that can prevent intrusions.
- Use strong and unique passwords for online accounts.
- Use multi-factor authentication whenever possible. It helps prevent thieves from easily hacking accounts.
The IRS also reminds people about advice from the Federal Trade Commission to never buy anything from online sellers that accept payment only by gift cards, money transfers through companies like Western Union or MoneyGram or cryptocurrency.
Payments you make that way are nearly impossible to trace and reverse. Scammers often tell people to use those payment methods so they can get money quickly.
Additionally, the IRS warned taxpayers of a recent increase in IRS-themed texting scams aimed at stealing personal and financial information. During 2022, the IRS identified and reported thousands of fraudulent domains tied to multiple MMS/SMS/text scams (known as smishing) targeting taxpayers.
Smishing campaigns target mobile phone users, and the scam messages often look like they're coming from the IRS, offering lures like fake COVID relief, tax credits or help setting up an IRS online account. Recipients of these IRS-related scams can report them to phishing@irs.gov.
Stolen data can be used to file fraudulent tax returns that make it more difficult for the IRS and the states to detect because the fraudulent returns use real financial information. Other data thieves sell the basic tax preparer or taxpayer information on the web so other fraudsters can try filing fraudulent tax returns.
Given the rise of texting scams, taxpayers can check out security recommendations for their specific mobile phone by reviewing the Federal Communications Commission's Smartphone Security Checker. Since phones are used for shopping and even for doing taxes, remember to make sure phones and tablets are just as secure as computers.
Formed in 2015, the Security Summit partnership between the IRS, state tax administrators and the tax software and tax professional community have worked together to improve defenses and protect people from tax-related identity theft. As part of that effort, the Summit partners worked to raise taxpayer and tax professional awareness about security issues – not only protecting people from the risk of identity theft but helping protect the nation's tax system from refund-related fraud.
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Treasury Provides Special Benefits to Military Members and Veterans
On Veterans Day, the state of Michigan extended its gratitude to current and former military members by reminding them of the special benefits they may be entitled to receive through the Michigan Department of Treasury.
Current and former military members may be eligible to receive:
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Military Pay Tax Exemption. Military pay is exempt from Michigan tax, including military retirement benefits and exit and separation pay.
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Children of Veterans Tuition Grant. This program provides undergraduate tuition assistance to the children of Michigan veterans who were totally and permanently disabled, missing in action or died while serving. Students may receive scholarship assistance for up to four academic years for a total of up to $11,200.
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Disabled Veterans Property Tax Exemption. A property tax exemption for real property used and owned as a homestead as outlined in state law.
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Principal Residence Exemption (PRE) for Active Duty Military Personnel. Property owners can retain a PRE while on active duty if their property is rented or leased.
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Property Tax Relief during Active Military Service. Property owned by a serviceperson cannot be sold to pay delinquent property taxes during a tour of active duty.
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Summer Property Tax Deferment. A serviceperson, veteran or widow or widower whose income outside of military compensation is no more than $7,500 per year may be eligible for a summer property tax deferment.
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Federal Military Spouses Residency Relief Act. The spouse of an individual in the military may not be subject to the state's taxation if they are a nonresident of the state, the service member is present in the state due to military orders, the spouse is solely in the state to accompany the service member, and the spouse maintains a domicile in another state. This act was amended in December 2018 to alternately allow military spouses to elect the same state of domicile as their service member spouse, even if they are not present in that state.
"The Michigan Department of Treasury will work closely with our military members past and present to ensure they get the tax benefits and other resources they deserve," State Treasurer Rachael Eubanks said. "If you have questions about any of these benefits, please contact us so we can talk about your options."
Individuals with questions about tax relief and other benefits for current and past military members should go to Michigan.gov/Treasury and click on "Contact." Program-specific phone numbers can be found on the "Contact" webpage.
In addition, State Treasurer Rachael Eubanks recently talked with Michigan Veteran Affairs Agency Director Zaneta Adams to learn about the benefits of a small business becoming a veteran-friendly employer. Individuals can listen to the discussion on the Treasury Talk: The Veteran-Friendly Employer Program and Your Small Business podcast.
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The Veteran-Friendly Employer Program and Your Small Business
Join State Treasurer Rachael Eubanks and Michigan Veteran Affairs Agency Director Zaneta Adams to learn about the BIG small business benefits of becoming a Veteran-Friendly Employer!
Podcast guest Zaneta Adams was appointed Director of the Michigan Veterans Affairs Agency by Gov. Gretchen Whitmer in June 2019. She is the first woman veteran in Michigan history to be appointed to a governor’s cabinet position. In 2006, after eight years of service in the U.S. Army, National Guard and Reserve, Adams was medically discharged with honor.
During her time in the military, Adams served as a Joint Counter Narcotics Task Force Agent for the National Guard. Prior to her appointment to the MVAA in 2019, she was an attorney at Williams Hughes PLLC, assisting veterans with compensation and pension appeals. Adams is also an appointed member of the U.S. Department of Veterans Affairs' Sexual Assault and Harassment Prevention Workgroup, and in August 2022 was elected junior vice president of the National Association of State Directors of Veterans Affairs (NASDVA).
Listen now: https://www.buzzsprout.com/2065389/11642806
RESOURCES for Veterans, and for Your Small Business:
Previously on Treasury Talk: CyberSecurity and Your Small Business. Listen to Treasurer Rachael Eubanks and Michigan Treasury's Ryan McElhone to learn how to protect your business's reputation and bottom line.
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Tax Policy Division Publishes Latest Update
The Michigan Department of Treasury recently published the November 2022 edition of Treasury Update. This quarter's issue features:
- The Treatment of Student Loan Forgiveness Under the Income Tax Act
- Recently Issued Guidance from Treasury
- Supreme Court Denies Treasury's Motion for Rehearing Comerica Inc. v. Department of Treasury
- Ruling that Reverse Vending Machines Do Not Qualify for the Industrial Processing Exemptions Becomes Final Word
- Michigan Enacts New Partnership Reporting Legislation
- Court of Claims: "Field Charges" Not Properly Included in MBT Inventory Deduction.
The most recent issue -- as well as past issues -- are available online.
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State Tax Commission: Inflation Multiplier Rate Set for 2023
The State Tax Commission on Nov. 15 issued Bulletin 17 of 2022, reporting a 7.9% inflation rate to be used in calculating 2023 property tax Headlee millage rollbacks.
Proposal A, however, limits the increase in taxable value of each parcel of property to the inflation rate or 5%, whichever is less, until the property is sold. Property owners can expect 2023 taxable values to increase by 5%, but not to exceed the 2023 state equalized value.
New construction will result in an additional taxable value increase. Changes in 2023 tax bills will also depend on whether any millage rates are raised or lowered.
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Fostering Futures Scholarship End of Year Giving
As 2022 draws to a close and you plan your end-of-year giving, please 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.
Since 2012, fundraising efforts have totaled approximately $1,300,000; all of which have 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 along 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 December 31 are eligible for a tax deduction in the year they are made.
Approximately 10,000 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.
Michigan's young adults who have experienced foster care appreciate your generosity.
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