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News & Events Digest: January 2024





Governor Whitmer
Gov. Whitmer Encourages Michiganders to Save Money with New Tax Cuts This Season

Governor Gretchen Whitmer recently announced that both the federal and state individual income tax season has begun and urged Michiganders to check out two important state tax changes that could put more money into the pockets of eligible taxpayers.

“Working families and retirees will save and get more money back when they file their taxes this year,” said *Governor Whitmer*. “Last year, we rolled back the retirement tax and quintupled the Working Families Tax Credit, saving hundreds of thousands of Michiganders money on their taxes. I am so proud our new legislative majority delivered over $1 billion in tax relief to help Michiganders care for their families, pay the bills, or save for a rainy day. Let’s keep working together to lower costs and ensure anyone can ‘make it’ in Michigan.”

On January 29, Michiganders began filing their 2023 tax year state individual income tax returns electronically [ [link removed] ] through commercial software or by mailing paper forms [ [link removed] ] 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 [ [link removed] ].

"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."

Read more about tax cuts this tax season on Governor Whitmer's website. [ [link removed] ]



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Earned Income Tax Credit
Gov. Whitmer Encourages Eligible Michiganders to Claim the Working Families Tax Credit

Governor Gretchen Whitmer recently encouraged eligible Michiganders to claim both the federal and state Earned Income Tax Credit (EITC), also known as the Working Families Tax Credit, when filing their 2023 individual income tax returns. Those who qualify and claim the tax credit could pay less federal and state taxes, pay no tax or even get a tax refund. Last year, Governor Whitmer signed legislation quintupling Michigan’s state match of the federal EITC, increasing the average refund by over $600. 

“The Working Families Tax Credit, also known as the EITC, delivers an average combined refund of $3,150 to 700,000 Michigan families," said *Governor Whitmer*. “Last year, with our new legislative majority, we quintupled Michigan’s credit, which will put hundreds more dollars in people’s pockets starting this year. The Working Families Tax Credit directly benefits half the kids in Michigan, and moms and dads use the extra money at tax time to pay the bills, put food on the table, and buy school supplies. From small towns to downtowns, the Working Families Tax Credit empowers families across Michigan. I encourage every eligible Michigander to take advantage of the credit when you file this year." 

To qualify, individuals must meet certain requirements [ [link removed] ] and file a federal income tax return, even if no tax is owed or there is no requirement to file a return. If a federal credit is granted, the state of Michigan will provide up to an additional 30% credit when the taxpayer files their state income tax return. 

The amount of the federal EITC depends on income, filing status and number of qualifying children claimed as dependents [ [link removed] ] on the taxpayer’s federal income tax return. The EITC reduces the amount of tax owed and may provide a refund. 

“I encourage Michiganders to check with a reputable tax preparer or use tax preparation software to see if they can claim the EITC on their federal and state tax returns,” said *State Treasurer Rachael Eubanks*. “The extra income provided by this tax credit can help working families care for their children and meet living expenses. It’s important for working families to see if they’re eligible. Please seek out tax preparation help if you think you qualify and need assistance.” 

The IRS reports the average federal EITC claimed on returns from Michigan was $2,587 last year. The average Michigan EITC was $154, with the credit at 6%.  

The additional 24% adjustment checks for tax year 2022 will average $618 per recipient.  

*Tax Year 2022 Michigan EITC Supplemental Checks* 

In mid-February, the Whitmer Administration will begin issuing supplemental check payments over a 5-to-6-week period to provide eligible taxpayers with the remaining 24% portion of the Michigan EITC for the 2022 tax year. 

These paper check payments will be issued to the most recent address on file with Treasury. Treasury routinely updates taxpayer address records based on current tax filings, so your address should be up to date. However, if you have moved frequently or recently and have concerns about your address accuracy, you can manually update it through IIT eService [ [link removed] ]. Visit how to change your address with Treasury [ [link removed] ] for more information. 

Do not file an amended 2022 individual income tax return to change your address or claim the increased Michigan EITC. 

*Free Tax Help* 

Individuals with low income, disabilities or who are 60 years of age or older may qualify for free tax preparation help from IRS-certified volunteers [ [link removed] ]. For information about free tax help, go to irs.treasury.gov/freetaxprep [ [link removed] ] or dial 2-1-1. 

Additional free tax help can be found at www.michiganfreetaxhelp.org [ [link removed] ].  

*About EITC Awareness Day* 

To inform and educate taxpayers about the importance of the EITC for working families, the Internal Revenue Service and Michigan Department of Treasury celebrate EITC Awareness Day [ [link removed] ] on Friday, Jan. 26, 2024. 

To learn more about the EITC, go to www.irs.gov/eitc [ [link removed] ]. More information about state of Michigan income taxes can be found at www.michigan.gov/incometax [ [link removed] ]. 



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Podcast

This month, guest host Ron Leix and guest Pam Bennett discuss how Treasury can be improved through internal review  and improvement. [ [link removed] ]



Medicaid Reminder

New Year's Resolution: Remember to complete your Medicaid renewal and return your paperwork so your family stays covered with eligible benefits. [ [link removed] ]






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Gift of Life Michigan
State Income Tax Forms Ready to Support the Michigan Organ Donor Registry

Gift of Life Michigan hosted the Michigan Department of Treasury, Eversight and Michigan Association of CPAs on January 22 to kick off tax season and celebrate a new way to join the Michigan Organ Donor Registry.

The Check Your Heart Act, signed into law last year, adds an area to check a box on state income tax forms for taxpayers who want to help others through organ and tissue donation.

Filers can sign up on their paper forms or electronically. The form is available here: 4642, 2023 Michigan Voluntary Contributions Schedule and Anatomical Gift Donor Registry [ [link removed] ].

“The ability to join the Organ Donor Registry by simply checking a box on your state income taxes has the real potential to save lives,” said Jeff Guilfoyle, Michigan’s Chief Deputy Treasurer. “Six million Michiganders file tax returns each year, which includes primary filers and their spouses. We are proud to be part of this effort and I want to thank our partners, our friends at the Secretary of State, and Gift of Life Michigan, for the commitment and passion each bring to this collaboration. Together, we can save lives.”

Michigan is the first in the nation to add the question to tax returns. *Other states around the country are now taking steps to do the same.*

A visit to the Secretary of State is the only time the public is routinely presented with the Donor Registry question. This provides one more way.

“We’re so grateful that the Check Your Heart Act was signed into law last year and to the Treasury for this important partnership that offers a creative way to allow people to say yes to donation,” said Dorrie Dils, president and CEO of Gift of Life.

More than 2,400 patients are waiting in Michigan for a life-saving organ transplant.

“I am hopeful that this tax season we will see the generosity of Michiganders in action, as they choose to join the registry when completing their taxes,” said Michael Titus, VP of clinical operations at Eversight, Michigan’s cornea and eye donation program.

Rachel Kuntzsch, a Lansing heart recipient said growing the Donor Registry is critically important for Michigan: “The more people who are registered, the more people can be matched, the more lives can be saved. People like me can see another year, another birthday, another sunset because of registered organ donors.”

Gift of Life Michigan is a federally designated organ procurement organization that serves the state of Michigan as the intermediary between donors, their families and hospital staff. In collaboration with Eversight, Gift of Life provides all services necessary for organ, eye and tissue donation. For more information, or to sign up on the Donor Registry, visit www.golm.org [ [link removed] ] or call 866.500.5801.



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Kavita Kale
Kavita Kale Selected as Deputy State Treasurer over Revenue Services

The Michigan Department of Treasury is pleased to announce that Kavita Kale has been selected as the Michigan Department of Treasury's new deputy state treasurer over Revenue Services. The deputy treasurer of Revenue Services is responsible for the oversight of the Tax Administration Services Bureau, Tax Compliance Bureau, and the Collection Services Bureau.

Kavita comes to us with 20 years of experience with the state of Michigan. She previously served as the director of the Collection Services Bureau and program director of the MiTreas project. Prior to joining Treasury in 2020, Kavita served as the administrator of the Enforcement Division of the Cannabis Regulatory Agency.

Kavita also worked with the Michigan Public Service Commission, the HIV Care and Prevention program with the Michigan Department of Health and Human Services and with Michigan Rehabilitation Services. She has a wide range of experience overseeing programs and contracts, implementing IT projects, and partnering with stakeholders to accomplish shared goals.

Kavita holds several master’s degrees in allied health. Her experience and strength in strategic planning and execution, technology systems, customer experience, legislation and policy matters, and continuous improvement activities will be a great asset to the Treasury leadership team.



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MiABLE
Ringing in 2024 Presents Opportunity to Open a Disability Savings Account, Making for a Happier New Year

With the dawn of the new year, the Michigan Department of Treasury is encouraging hundreds of thousands of Michiganders with disabilities to open MiABLE savings accounts and discover more about gaining greater financial freedom through MiABLE.

Approximately 500,000 individuals in Michigan are eligible to open MiABLE accounts, but only about 1% of that number are currently enrolled statewide.

“As people all over the world make New Year’s resolutions to diet, exercise or make some other self-improvement, we’re recommending that people with disabilities and their families add a commitment to achieving financial freedom through MiABLE to their list of pledges,” said R. Scott de Varona, MiABLE program director.

De Varona added, “There is no better way to start off the new year from a financial opportunity standpoint for people with disabilities and their families than to open a MiABLE account.”

While de Varona noted that “any time of year is a good time to open a MiABLE account,” he called the dawning of the new year “an opportunity to remind people that MiABLE serves as an important financial equity tool for Michiganders.”

Established in Michigan in 2015, MiABLE is a disability savings program administered by the Michigan Department of Treasury. It stands for Michigan Achieving a Better Life Experience and was designed to help ease the financial burden challenging people with disabilities and their families. MiABLE accounts help people with disabilities save for current and future expenses without jeopardizing government assistance like Medicaid and Supplemental Security Income.

In Michigan and nationally, a $2,000 federal asset limit is imposed on people with disabilities who receive government benefits. Compared with their peers, people with disabilities are twice as likely to live in poverty, less likely to be employed and more likely to be underemployed.

MiABLE allows individuals who became disabled before age 26 and their families to save up to $18,000 annually in various investment options. On top of that limit, beneficiaries who are employed can contribute an amount equal to their current-year gross income, up to another $14,580.

Setting up a MiABLE account is quick and easy, generally taking about 15 minutes, de Varona said.

A MiABLE account lets you make your own decisions about how to spend your money on qualified disability expenses (QDEs), without getting permission from a special trust. QDEs are expenses to maintain or improve your health, independence or quality of life. Examples include health care costs, housing, education and transportation.

MiABLE also allows family members, guardians, powers of attorney and others to open and manage an account on behalf of a person with a disability. Earnings on MiABLE savings grow tax-free, and no federal or state tax is owed on withdrawals used to pay for qualified disability expenses.

For more information or to open a MiABLE account online, go to www.MiABLE.org [ [link removed] ].



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Computer and Data
Municipalities Can Correct Errors in 2023 Personal Property Tax Reimbursements

The Michigan Department of Treasury (Treasury) reminds municipalities that, although not required, they can correct errors in the 2023 Personal Property Tax (PPT) reimbursements distributed in October 2023 and February 2024.

The Local Community Stabilization Authority (LCSA) Act provides municipalities an opportunity to review the PPT reimbursement calculations and data used in the calculations to ensure accurate PPT reimbursement distributions.  To determine if an error has occurred in the PPT reimbursement calculations or data used, the municipality must review the applicable reports on Treasury's 2023 Personal Property Tax (PPT) Reimbursements website [ [link removed] ].

*Links to the 2023 PPT reimbursement calculations and most common data used*:


* School District & ISD - 2023 PPT Calculation by Millage - October 2023 and February 2024 [ [link removed] ]
* Other Municipalities - 2023 PPT Calculation by Millage - October 2023 and February 2024 [ [link removed] ]
* 2013 and 2023 Personal Property Taxable Values Reported in Calendar Year 2023 [ [link removed] ]
* 2013 and 2023 Personal Property Taxable Values of Renaissance Zones [ [link removed] ]

*When NO Errors Are Identified:*

If a municipality does not identify an error, the municipality does not need to file a form or take any further action to notify Treasury.

*When Errors ARE Identified:*

If a municipality does identify an error, the municipality will need to complete the appropriate correction form to notify Treasury of the error(s).  In addition to the correction form(s), municipalities must provide substantiating documentation to support a correction.  The correction forms (along with the associated deadlines) are available on Treasury's Forms for Calculation of PPT Reimbursements website [ [link removed] ].


* Form 5651 [ [link removed] ] - "Correction of 2023 Personal Property Taxable Values Used for the 2023 Personal Property Tax Reimbursement Calculations"
* Municipality submission deadline to County Equalization Director:  *February 28, 2024*
* County Equalization Director submission deadline to Treasury:  *March 31, 2024*
* *Note: * Per the LCSA Act, only the 2023 personal property taxable values may be corrected.  The 2023 personal property taxable values must be the taxable value on May 10, 2023.

* Form 5654 [ [link removed]-(2022).pdf?rev=1b5f53a3214449e18fbaf419becf648c&hash=8E6086E485617E225EA7F1B5C5935621 ] - "Correction of School Millage Rates or Other Errors for the 2023 Personal Property Tax Reimbursement Calculations"
* Municipality submission deadline to Treasury:  *March 31, 2024*
* *Note:*  Only debt and hold harmless millage rates for school districts may be corrected at this time.  The LCSA Act does not allow any other millage rate errors to be corrected after August 1, 2023.

* Form 5658 [ [link removed] ] - "Modification of the 2013, 2014, and 2014 Personal Property Taxable Values Used for the 2023 Personal Property Tax Reimbursement Calculations"
* Municipality submission deadline to Treasury:  *March 31, 2024*
* *Note:*  Per the LCSA Act, the 2013, 2014, and 2015 personal property taxable values may only be modified because of a personal property reclassification or municipal boundary change.

*The corrections reported on Form 5651, Form 5654, and Form 5658 will be used in the calculation of the May 2024 distribution of the 2023 PPT reimbursements.*

Please direct any questions regarding the PPT reimbursement correction process to [email protected] or 517-335-7484.



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CREC Group Photo
Administration, Fiscal Agencies Reach Consensus on Revenue Estimates

State Treasurer Rachael Eubanks, Senate Fiscal Agency Director Kathryn Summers and House Fiscal Agency Director Mary Ann Cleary on January 11 reached consensus on revised economic and revenue figures for the remainder of Fiscal Year (FY) 2024, the upcoming 2025 fiscal year and the initial forecast for the 2026 fiscal year.

Detailed state revenue projections are available on the Michigan Department of Treasury's website. [ [link removed] ]

“Michigan’s economy and revenues are strong and stable, laying the groundwork for the upcoming budget process,” said State Treasurer Rachael Eubanks. “Confidence in our economy is expected to increase with lower inflation, lower interest rates, lower gas prices, and low unemployment. People are going to feel better and better about the economy as we move into 2024.”

The revenue estimates are based on the most recent economic projections and forecasting models. As with any economic and revenue forecast, there are potential risks to the estimates agreed to, including unexpected changes in the national economy and international economic issues.

“Under Gov. Whitmer’s leadership we’ve passed a balanced budget on time, every year; we’ve built up a record balance in the rainy-day fund; and paid off nearly $20 billion in debt,” said State Budget Director Jen Flood. “Following today’s conference, we’ll finalize the Governor’s budget proposal which will continue to prioritize lowering costs, investing in kids, and growing jobs and economy.”

FY 2024 spans from Oct. 1, 2023, to Sept. 30, 2024, while FY 2025 spans from Oct. 1, 2024, to Sept. 30, 2025. FY 2026 begins on Oct. 1, 2025.

The January Consensus Revenue Estimating Conference’s detailed forecast – as well as presentations from today’s session – can be found at www.michigan.gov/crec [ [link removed] ].

The January conference marked the first time in history where the directors of the state House and Senate Fiscal Agencies, Michigan Department of Treasury, and State Budget Office were all women.

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