Do you like a good tax refund you weren’t expecting? Here are some good news if you reside in Michigan: The Working Families Tax Credit (WFTC), kalso nown as the Michigan Earned Income Tax Credit, is a direct financial support mechanism for state residents earning low to moderate incomes.
This annually adjusted program returns a portion of paid taxes, running as both a work incentive and a source of relief for essential costs like housing and food. For the 2025 tax filing season, which addresses the 2024 fiscal year, the WFTC is delivering millions of tax refunds checks.
Michigan Working Families Tax Credit 2025 Guide
Data from the Michigan Department of the Treasury indicates an average distribution of $890 per qualifying household, reaching roughly 665,000 homes. This credit is issued as a direct refund and integrates with the Federal EITC, potentially raising a household’s total financial benefit beyond $3,000.
The origin of the current expansion of the WFTC is linked to tax reforms promoted by Governor Gretchen Whitmer. In 2023, a historic increase in the state credit rate was enacted, raising it from 6% to 30% of the corresponding federal amount.
This update expanded its coverage and amount in response to post-pandemic economic conditions, including inflationary pressures and the increase in the cost of living.
WFTC Michigan 2025: Average Payout and Dates
For fiscal year 2024, the maximum state credit for families with three or more qualifying children is set at $2,349, adjusted for inflation. For households without children, the maximum amount is approximately $180.
Calculations are based on 30% of the federal EITC: a single parent with two children and moderate income could access up to $1,981 from the state, in addition to the $6,604 federal amount. This additional income can be used to cover several months of utility bills or invest in job training.
Who Can File to Claim the Tax Refund?
Eligibility for the WFTC is subject to defined criteria that require accurate tax reporting. For 2025, applicants must prove Michigan residency, have earned income during 2024—from wages, tips, or self-employment—and not exceed inflation-adjusted income limits. Investment income cannot exceed $11,600 annually.
The minimum age to apply is 25, with exceptions for 18-year-olds who are full-time students, have disabilities, or are parents with qualifying children. Income thresholds fluctuate based on marital status and the number of dependents.
- Income Thresholds for Single Individuals (Filing Separately):
- Without children: $18,591
- With one child: $49,084
- With two children: $55,768
- With three or more children: $59,899
- Income Thresholds for Married Couples (Filing Jointly): These limits increase by approximately $6,500 across all categories, reaching up to $66,819 for families with three or more children.
Example of Eligibility: A single mother with one child and an income of $35,000 fully qualifies, receiving a state credit of approximately $1,200. The credit amount progressively decreases as income approaches the maximum threshold.
Do I Have to Apply to Claim a Refund Check?
There’s no need to complete a separate application; the process is completed by filing the state tax return MI-1040 along with the federal Form 1040, making sure to check the box for the federal EITC. If you qualify for the federal credit, the state automatically computes the 30% and incorporates it into your total refund.
The filing period began in January 2025 and ended on April 15. Electronic refunds are typically processed within two weeks, while mailed refunds can take up to eight weeks.
For taxpayers without access to commercial tax preparation software, Michigan offers free programs such as VITA (Volunteer Income Tax Assistance), administered through the United Way, which serves more than 100,000 people annually. It’s recommended that you check your refund status through the Treasury’s My Account portal, where you can also update your banking information to expedite direct deposits and minimize inconveniences.
