Treasury News & Events Digest: February 2024

Michigan Department of Treasury sent this bulletin at 02/29/2024 03:57 PM EST

News & Events Digest: February 2024

Gov. Whitmer Announces Nearly 300,000 Checks Sent to Michiganders, Putting an Average of $550 Back in People’s Pockets

Governor Gretchen Whitmer provided an update on Feb. 26 on the state's progress to send Working Families Tax Credit checks to Michigan families. To date, nearly 300,000 checks worth more than $219 million have been sent to taxpayers. Once completed, the checks will put an average of $550 into Michiganders’ pockets for more than 700,000 Michigan households. Michigan taxpayers who received a 2022 tax year Michigan Earned Income Tax Credit for Working Families will soon be receiving a supplemental check in their mailboxes, according to the Michigan Department of Treasury. 

“With the Working Families Tax Credit check now making its way into the mailboxes of Michiganders, many families will feel a great sense of relief,” said Governor Whitmer. “By rolling back the retirement tax and quintupling the Working Families Tax Credit, we’re not just saving hundreds of thousands of Michiganders money on their taxes; we're providing families the support necessary to focus on what truly matters—paying the bills, putting food on the table, or even affording the basics such as groceries. Let's continue to work together to lower costs for Michiganders and grow our economy.”

“My team is working hard to ensure that 700,000 Michigan households receive their supplemental checks while simultaneously processing tax returns,” said State Treasurer Rachael Eubanks. “These checks are being sent in batches due to seasonal mailing demands. We anticipate this mailing will be completed in the next few weeks and ask eligible taxpayers to be patient as we work as fast as practical to get your check to you.” 

All supplemental checks are anticipated to be mailed to eligible taxpayers within five to six weeks from Feb. 13. Taxpayers are encouraged to contact Treasury if they have not received their 2022 tax year Michigan Earned Income Tax Credit supplemental check by April 1. 

For the 2022 tax year, eligible taxpayers were provided a 6% Michigan Earned Income Tax Credit when they filed their state individual income tax returns. A state law that became effective Feb. 13 means those taxpayers will receive a supplemental check for the remaining 24% portion of their 2022 tax year Michigan Earned Income Tax Credit for Working Families. 

The Michigan Earned Income Tax Credit is a tax benefit for working individuals with income below a certain level. Effective for the 2022 tax year and beyond, the Michigan Earned Income Tax Credit is a 30% match of the federal Earned Income Tax Credit. 

How do I know if I’m going to receive a check? 

If a taxpayer received a Michigan Earned Income Tax Credit when they filed their 2022 tax year state individual income tax return last year, a supplemental check will be on the way. 

Taxpayers can determine how much they will be receiving by taking the amount on Line 27b of their 2022 MI-1040 return and multiplying it by 4. 

Do I need to update my address? 

The supplemental checks will be issued to the most recent address on file with Treasury.  

Taxpayers who moved will have their addresses updated automatically when they file their 2023 tax year state individual income tax returns.  

When can I expect my check? 

Treasury began sending checks on Feb. 13. Please allow 5 to 6 weeks for the checks to hit mailboxes. If a check has not be received by April 1, please contact Treasury. 

Where can I go for more information? 

Additional information about the Michigan Earned Income Tax Credit for Working Families supplemental checks can be found at www.michigan.gov/2022eitc. To learn more about the state of Michigan’s individual income tax, go to www.michigan.gov/incometax.  

Michigan’s Individual Income Tax Filing Season Underway

The state and federal individual income tax filing season has begun.

Michiganders can file their 2023 tax year state individual income tax returns electronically through commercial software or by mailing paper forms through the U.S. Postal Service. All individual income tax returns must be e-filed or postmarked by Monday, April 15, 2024.

For the benefit and convenience of taxpayers, both the beginning and end of the individual income tax filing season are the same as the Internal Revenue Service.

"Working families and retirees have substantial benefits and options to consider when filing their taxes this year," said State Treasurer Rachael Eubanks. "These taxpayers have a lot to gain from the increased Michigan Earned Income Tax Credit for Working Families, ‘Retirement Tax’ rollback or other available tax credits. I encourage taxpayers to seek out a reputable tax preparer or use tax preparation software. We don’t want eligible taxpayers to miss out on these important benefits."

Tax Changes This Season

Michigan’s 2023 tax return, forms, and instructions reflect the expansion of Michigan Earned Income Tax Credit for Working Families from 6% to 30% under the Lowering MI Costs Plan.

In addition, the Lowering MI Costs Plan provides taxpayers with more options so they can choose the best taxing situation for their retirement benefits for the 2023 tax year.

Over a four-year phase-in, this new law restores the pre-2012 retirement and pension subtraction for most taxpayers in Michigan beginning in 2026. The change will benefit more retirees in Michigan while ensuring taxpayers in unique circumstances are not harmed.

Additional details about this year's tax season can be found on www.michigan.gov/incometax.

This month, State Treasurer Rachael Eubanks and Chief Economist Eric Bussis talk about Michigan's latest economic forecast and state budget.

Completing your Medicaid renewal paperwork and returning the information as soon as possible helps keep your family protected.

Volunteer Tax Preparers Can Connect Taxpayers with Tax Credits, Other Benefits

With the quintupling of the Michigan Earned Income Tax Credit for Working Families from 6% to 30% and other tax benefits on the table this year, the Michigan Department of Treasury is encouraging low-to-moderate income taxpayers to find qualified professional or volunteer tax preparers to ensure no benefits are left behind.

“Eligible taxpayers could miss out on valuable tax benefits if they don’t file a tax return or incorrectly file a tax return,” said State Treasurer Rachael Eubanks. “Volunteer preparers can help taxpayers receive the most deductions and credits possible. These benefits can reduce the amount of tax owed or even create a refund. Please connect with the tax preparation assistance that fits your situation.”

The Internal Revenue Service’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic return preparation to qualified individuals. Generally, assistance from VITA or TCE is available to taxpayers who meet one of the following conditions:

Your income is $64,000 or less.
You are a person with a disability.
You speak limited or no English.
You are age 60 or older.

For information about free tax help, go to irs.treasury.gov/freetaxprep or dial 2-1-1. Additional free tax help can be found at www.michiganfreetaxhelp.org.

The Michigan Department of Treasury provides guidance online about finding a qualified, paid tax preparer.

Under state law, taxpayers are responsible for the content within their tax returns and for any additional payments, penalty and interest that may result from a tax preparer’s error. While the state of Michigan does not require tax preparers to be licensed, many are licensed, certified and belong to professional organizations that require a minimum level of education and provide ongoing training.

State Treasury Department Providing Individuals, Businesses Tax Relief due to Federal Disaster Declaration

With the Internal Revenue Service granting tax relief on Feb. 15 after President Biden approved a federal disaster declaration for nine Michigan counites, the Michigan Department of Treasury is providing an opportunity for disaster survivors to obtain state tax relief.

Individual and business taxpayers who reside in Eaton, Ingham, Ionia, Kent, Livingston, Macomb, Monroe, Oakland and Wayne counties can request additional time to file state tax returns and pay state tax bills, with penalties and interest waived. These areas were affected by severe storms, tornadoes and flooding from Aug. 24-26, 2023.

“A natural disaster can be devastating both personally and financially,” State Treasurer Rachael Eubanks said. “By providing tax relief, disaster survivors will have more time to focus on recovering and getting their lives back to a sense of normalcy. Taxpayers should reach out to us to learn more about the process for obtaining this relief.”

Individuals unable to meet filing or payment deadlines due to this disaster should contact Treasury at 517-636-4486. Businesses are asked to call 517-636-6925.

In addition, affected taxpayers may write to Treasury to request disaster-related tax relief. When writing, the following must be included in the correspondence:

Name and account number of the individual or business taxpayer.
Reason for the relief request.
Taxpayer address within one disaster area or address of the tax preparer located in the disaster area.

Taxpayers should send the completed correspondence to the following address:

Michigan Department of Treasury
Attn: Disaster Tax Relief
Lansing, Michigan 48922

Some taxpayers may receive a preliminary assessment notice before a tax relief request is formally received by Treasury. Taxpayers within the disaster area who receive these notices should contact Treasury by phone to resolve.

Calculation of State Individual Income Tax Rate Adjustment for 2024 Tax Year

State Treasurer Rachael Eubanks, Senate Fiscal Agency Director Kathryn Summers and House Fiscal Agency Director Mary Ann Cleary today published their calculation about whether an individual income tax rate adjustment is statutorily required for the 2024 tax year.

Upon publication of the state of Michigan’s Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2023 – which ran from Oct. 1, 2022, to Sept. 30, 2023 – the state treasurer and agency directors conducted a state law-required calculation to determine if a rate change was required. The result of that calculation found that the conditions for an individual income tax reduction were not present.

Treasury Administration of Calculation

“State law requires that a very specific calculation be conducted annually following release of the state’s ACFR to determine the individual income tax rate,” said State Treasurer Rachael Eubanks. “As anticipated, we found that the conditions were not present for a rate reduction for the 2024 tax year. The tax rate will remain at 4.25%.”

Under state law, the individual income tax rate may be subject to a formulary reduction if the general fund grew faster than the rate of inflation for the immediately preceding state fiscal year and the inflation rate is positive.

Using data from the state Fiscal Year 2023 ACFR, the general fund was down -8.33% and inflation went up by 5.06%. This means conditions are not present for a rate reduction for the 2024 tax year.

A table with the individual income tax rate calculation data is available online.

The ACFR for Fiscal Year 2023 can be found on the State Budget Office’s website. Additional details about the individual income tax rate calculation can be found in a taxpayer notice issued by the Michigan Department of Treasury.

In 2015, Michigan enacted a law requiring a temporary reduction of the state individual income tax rate if the general fund grew faster than the rate of inflation in any year starting for the 2023 tax year. Because the general fund grew faster than inflation during the state’s 2022 fiscal year, the state individual income tax rate decreased to 4.05% for the 2023 tax year.

Last year, Attorney General Dana Nessel issued a legal opinion finding that the tax reduction will apply to the 2023 tax year only. The Michigan Court of Claims reaffirmed the finding.

Annually, upon the publication of the ACFR, the law requires the state treasurer and the directors of the House and Senate Fiscal Agencies to determine if the income tax rate will change.

Check for Unclaimed Property or Assets Today

Michiganders were encouraged to conduct a simple search online to see if they have any lost or abandoned property as a part of National Unclaimed Property Day on Thursday, Feb. 1.

“I encourage Michiganders to take a few moments out of their busy day to see if they have lost or unclaimed property,” said Terry Stanton, who oversees Michigan’s Unclaimed Property Program. “Even if you have searched for unclaimed property recently, please check our website again. Our unclaimed property database is updated multiple times throughout the year. My team is ready to help begin the process to reunite you with your unclaimed property or assets.”

To find out if you have cash or property, go directly to the Michigan's Unclaimed Property website, which provides enhanced search options and the ability to upload verifying documentation easily and securely. Individuals who live outside of the state of Michigan can check multiple states’ unclaimed property listings at www.UCPday.com.

Treasury has millions of dollars in lost or forgotten assets that includes dormant bank accounts, uncashed checks, valuables left in safe deposit boxes and stock certificates. These properties were all turned over to the state once they were determined to be abandoned as required by law.

Treasury is the custodian of these assets and reunites them with their owners -- or the owners' heirs -- when they are rightfully claimed.

Individuals are encouraged to search their name, a maiden name, or the name of a business or nonprofit. There is never a charge to search for and claim property.

Claimants may also call 517-636-5320 between 9 a.m. and 2 p.m., Monday through Friday.

For businesses, corporations, nonprofits, public entities and other organizations holding unclaimed or abandoned property, instructions on how to prepare and easily submit your report and remittance online can be found on Michigan's Unclaimed Property website as well.

According to the National Association of Unclaimed Property Administrators (NAUPA), more than $2.87 billion dollars in unclaimed property was returned to rightful owners around the country in 2023. Nearly 33 million people in the United States – 1 in every 7 – has unclaimed property: financial accounts or items of value in which the owner has not initiated any activity for a number of years.

In Michigan, $138.5 million was returned to rightful owners and heirs last year and more than $600 million over the last five years.

In 2021, to increase awareness of unclaimed property, NAUPA launched the first National Unclaimed Property Day on Feb. 1. Then and now, unclaimed property administrators encourage everyone to search for unclaimed property. To learn more about National Unclaimed Property Day, go to www.UCPday.com.

In support of National Unclaimed Property Day, Gov. Gretchen Whitmer has proclaimed Thursday, Feb. 1, as Michigan’s Unclaimed Property Day.

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