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News & Events Digest





*January 2023*
Revenue Conference

State Treasurer Rachael Eubanks,?Senate Fiscal Agency Director Kathryn Summers and House Fiscal Agency Director Mary Ann Cleary on Jan. 13 reached consensus on revised economic and revenue figures for the remainder of Fiscal Year (FY) 2023 and 2024 and the initial forecast 2025 fiscal year. (Jean MacLeod/Michigan Department of Treasury)

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State Treasurer: Individual Income Tax Filing Season Officially Begins; State Individual Income Tax Returns Due on April 18, 2023

Tax Season

State Treasurer Rachael Eubanks on Jan. 23 announced that Michigan's individual income tax filing season has officially begun.

Michiganders can start filing their 2022 tax year state individual income tax returns?online [ [link removed] ]?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 Tuesday, April 18, 2023.

"It?s hard to believe that individual income tax season is already here," State Treasurer Rachael Eubanks said. "My team is ready to begin processing your state income tax return today. For the easiest and quickest experience, I recommend filing electronically. This helps ensure tax returns are accurate and improves tax refund turnaround times."

Choosing electronic filing and direct deposit is convenient, safe and secure. Last year, more than 4.8 million Michigan taxpayers e-filed, which is 89% of state individual income tax filers.?

For more information about e-filing, go to?www.mifastfile.org [ [link removed] ].

Printed tax forms are being distributed and will be available in limited quantities by mid-February at public libraries, some northern Michigan post offices, Michigan Department of Health and Human Services county offices and Treasury field offices.

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] ].

City of Detroit individual income tax returns are due on April 18, 2023.

*Ask Questions with eServices*

Michigan taxpayers who have questions about their individual income tax returns or refunds can use the?Treasury eServices [ [link removed] ]?platform to find answers.

The state Treasury Department portal enables taxpayers to ask state individual income tax-related questions when convenient and avoids waiting for a customer service representative to answer your call. Taxpayers typically get answers to questions through Treasury eServices within 24 to 48 hours.

Real-time tax refund status information is available 24 hours a day, seven days a week.

The?Treasury eServices [ [link removed] ]?platform also enables taxpayers to change addresses, view estimated tax payments, calculate penalty and interest, and view and respond to letters.

*Free Tax Help*

Individuals with low income, disabilities or 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.


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

eitc

Governor Gretchen Whitmer and State Treasurer Rachael Eubanks recently encouraged eligible Michiganders to claim both the federal and state Earned Income Tax Credit (EITC) for working families when filing their 2022 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.

?Under my plan, the Working Families Tax Credit will deliver an average of $3,000 in combined tax refunds to more than 700,000 families, putting money back in household budgets to help pay rent, buy school supplies, and put nutritious meals on the table,? said Governor Gretchen Whitmer. ?Expanding this credit directly benefits almost 1 million kids?nearly half the kids in Michigan. It will empower working-class families of every race and in every county, from our small towns to our city centers. I encourage every eligible family to take advantage of this tax credit and get your refund when you file this year. I am so proud that the legislature passed a bill to at least triple the credit last night. I look forward to signing it!?

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 a 6% add-on credit when the taxpayer files their state income tax return. If the legislature expands the credit, the state will issue the increase as a supplemental payment later in the year.??

The amount of the federal?EITC for working families 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.

?When filing an annual tax return, Michiganders should check with their tax preparer or tax preparation software to see if they can claim the EITC for working families on their federal and state tax returns,? said State Treasurer Rachael Eubanks. ?The extra income this tax credit provides can help Michigan families care for their children and meet living expenses. It?s important for working families to see if they?re eligible.?

During the 2019 tax year, the last comparable year prior to the pandemic, more than 738,000 claimants received the Michigan EITC for working families, totaling more than $110 million with an average credit amount of $150.

Under the governor's plan, Michigan EITC households would see an average of $500. Under the bill just passed by the House, they would see an average of $750.

To inform and educate taxpayers about the importance of the EITC for working families, the Internal Revenue Service and Michigan Department of Treasury celebrated?EITC Awareness Day [ [link removed] ]?on Friday, Jan. 27, 2023.


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Business Taxpayers Reminded About Wage Statement and Income Record Form Due Dates

Taxes

Business taxpayers are reminded that they must submit their wage statements and other income record forms -- such as?W-2s [ [link removed] ],?1099-NEC [ [link removed] ]?and?1099-R [ [link removed] ]?-- to the Michigan Department of Treasury on or before Feb. 1, 2023.

Business taxpayers may send their wage statements and income record forms through one of the following options:

*Michigan Treasury Online (MTO):*?While open to all taxpayers, businesses issuing 250 or more income statements are required to use MTO to send W-2 and 1099 forms. Taxpayers and tax professionals can create a personal user profile and upload their forms. For guidance, visit?the MTO Help Center [ [link removed] ].

*Mailed Magnetic Media:*?The state Treasury Department offers magnetic media mailing to taxpayers with fewer than 250 income statements. Details for mailing magnetic media can be found on?Transmittal for Magnetic Media Reporting of W-2s, W-2Gs and 1099s (Form 447) [ [link removed] ].

*Paper Form Mailing:*?Paper copies of income statements from issuers with fewer than 250 statements may be mailed to the following address: Michigan Department of Treasury Lansing, MI 48930. No additional form is needed with paper form mailing.

Business taxpayers can submit their 1099-MISC income record forms on or before March 1 for paper filers and on or before March 31 for electronic filers.

While certain wage statements and income record forms are due on or before Feb. 1, 2023, the Sales, Use and Withholding Taxes Annual Return (Form 5081) is still due on Feb. 28, 2023. Wage statements and other income record forms should not be submitted with Form 5081.


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Grants Available for Financially Distressed Cities, Villages, and Townships; Money for Special Projects to Free Up Funds for Important Services

Michigan Map

Cities, villages and townships experiencing financial struggles can now apply for a grant to help fund special projects and free up tax dollars for important services.

Applications are now being accepted for the Financially Distressed Cities, Villages, and Townships (FDCVT) grant program. Municipalities interested in applying for an award must submit applications to the state Treasury Department by 11:59 p.m. on Friday, March 31, 2023.

All cities, villages and townships experiencing at least one condition of ?probable financial distress? as outlined in the Local Financial Stability and Choice Act are eligible to apply for up to $2 million. A total of $2.5 million in funding is available for Treasury to award through the FDCVT grant program for the 2023 fiscal year.

Grant funding may be used to pay for specific projects or services that move a community toward financial stability. Preference will be given to applications from municipalities that meet one or more of the following criteria:


* A financial emergency has been declared in the past 10 years.
* An approved deficit elimination plan for the General Fund is currently in place.
* Two or more conditions indicating ?probable financial distress? currently exist.
* The fund balance of the General Fund has been declining over the past five years and the fund balance is less than 3 percent of the General Fund revenues.

Due to requirements outlined under state law, school districts are not eligible for funds from this grant program.

For more information about the FDCVT grant program or to download an application, go to?www.michigan.gov/revenuesharing [ [link removed] ].


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Reminder: Inflation Multiplier Rate Set for 2023

Facts and Figures

The State Tax Commission on Nov. 15 issued?Bulletin 17 of 2022 [ [link removed] ], 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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Administration, Fiscal Agencies Reach Consensus on Revenue Estimates; Economy Continues to Thrive, Revenues Up from May Forecast

CREC at Capitol

State Treasurer Rachael Eubanks,?Senate Fiscal Agency Director Kathryn Summers and House Fiscal Agency Director Mary Ann Cleary on Jan. 13 reached consensus on revised economic and revenue figures for the remainder of Fiscal Year (FY) 2023 and 2024 and the initial forecast 2025 fiscal year.

A detailed analysis of the revenue projections and quotes from the state treasurer and state budget director can be found in the news release issued after the conference [ [link removed] ].


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PODCAST: End-of-Year Tax Tips and Your Small Business

Bussis

Join host Treasurer?Rachael Eubanks?and guest?Eric Bussis, Chief Economist and Director of Treasury?s Office of Revenue and Tax Analysis, for all-new info designed to help small business owners guide their companies in our new economy.?

*"Listen now"*:?Michigan?s Economic Forecast and Your Small Business (buzzsprout.com) [ [link removed] ]

Podcast host?Rachael Eubanks [ [link removed] ]?was appointed as Michigan's 47th State Treasurer by Governor Gretchen Whitmer in January of 2019. Treasurer Eubanks is committed to building Treasury's culture of service to Michiganders through continuous improvement and employee engagement, which are the foundation of Treasury's mission to provide fair and efficient financial services to all taxpayers for the long-term fiscal health and stability of our state.

Eric Bussis serves as chief economist and director of the Office of Revenue and Tax Analysis in the Michigan Department of Treasury. The office provides revenue estimates for all tax matters to the governor, state treasurer, and state budget director.

Mr. Bussis is responsible for forecasting economic activity, tracking state government revenues, and estimating the fiscal impact of tax legislation. He works with stakeholders in the executive and legislative branch to craft tax legislation and meet revenue objectives. Prior to his current position, he served three different governors in budget and economist roles in the Michigan State Budget Office and the Indiana Office of Management and Budget.

Listen now:?[link removed]

*RESOURCES*


* The Consensus Revenue Estimating Conference (CREC)?economic forecast documents [ [link removed] ]


* WATCH:?January Consensus Revenue Estimating Conference (Senate TV - Jan. 13, 2023 [ [link removed] ]

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Register Today for a Michigan Achievement Scholarship Webinar!

Graduation

High school students and their families/caregivers looking to secure more financial aid for college are encouraged to?register for an informational webinar [ [link removed] ]?about the?Michigan Achievement Scholarship [ [link removed] ], which is a new State of Michigan scholarship program expected to impact the majority of students in the Class of 2023 and beyond!?

Participants will be able to gather the following information:


* Michigan Achievement Scholarship eligibility requirements
* Michigan Achievement Scholarship award amounts
* Important action items for students and families
* Additional resources and program information

All sessions are free of charge and open to the public. Please register for one session only, as space is limited.?

The Michigan Department of Treasury is not affiliated with National Merit Scholarship Corporation or its registered trademarks National Achievement?, Achievement Scholarship?, or Achievement Scholar?


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*Register for a Free After-Hours Tax Webinar*

Treasury Outreach

After Hours Events from Treasury Outreach: "Preparation for SUW Tax Year End Webinar Series." Register now for free online evening sessions:?[link removed].


* Sales, Use, and Withholding Tax Basics
* Ins & Outs of SUW Tax Returns
* SUW Filing and Payment Rules
* Treasury Web Services for SUW Taxes
* MTO Live Demo






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