Good news, Michiganders! There are some changes in the tax code this year, and they may actually benefit you! Let’s check out what’s changed.
Here are Five Fast Facts on changes to the MI tax code:
- 📉 Taking A Dip - The first change is that the income tax rate dips from 4.25% to 4.05%. This means more money back in your pocket!
- 📈 Jumping Up - The next change is a much more generous 30% tax credit for working families (up from 6% in 2021). It’s capped out at $2,229, but it’ll also count up to $2,080 for last year, too. This will stay in place for the next three years. Woo-hoo!
- ❕❕ Extra Extra! - The average amount most qualifying returns will get is around $550 more than last year. Thank you, sir, I’d like another!
- 👍 Retirement Rollback - The third big change is a rollback on income from retirements like pensions - public servants like police, fire department, and corrections officers (and some others) would have their retirement income exempt from taxes. Hey, they deserve it, right?
- 🔍 Double Check - Some of these provisions will kick a check to you automatically, and some will allow you to compare your tax returns under the old way and the new want and pick whichever one works best for you. Make sure you work with a tax preparer to get the best deal possible!
🔥Bottom line: It’s nice when changes to the tax code actually benefit the regular folks. Hopefully these changes will stick for the long term!
What do you think of these changes?
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