LANSING — More than 700,000 Michigan households can expect to receive checks next year that will include an average of $550 for families.

On Thursday, Governor Whitmer announced that the checks from the Working Families Tax Credit are expected to be sent to Michigan families in February.

The checks are the result of a new law signed last March that boosted the state’s Working Families Tax Credit to match the federal government’s Earned Income Tax Credit of 30 percent. Families can expect a combined tax refund of $3,150.

The governor said the tax credit checks “directly benefits half the children in Michigan, and moms and dads can use this extra money at tax time to pay the bills, put food on the table and buy school supplies.”

What is the Working Families Tax Credit?

The Working Families Tax Credit is the name the governor gave for the tax benefit that Michigan families receive if they have working individuals with income below a certain level.

It’s similar to the Earned Income Tax Credit, which is the federal government’s version of the same benefit.

The amount families receive is based on the household’s salary and the number of children they have. For example, a family with two parents who earn no more than $59,478 and has two qualifying children can receive up to $6,604 according to tables made available by the IRS.

Earlier this year, the state expanded the Michigan Earned Income Tax Credit from 6 percent to the federal rate of 30 percent.

The money is a credit for taxes someone has already paid and reduces the amount that a family would owe.

When will I receive my check?

The tax credit checks will be mailed out on Feb. 13, 2024.

What about my 2022 tax return

The tax credit expansion was written to include a family’s 2022 tax returns as well. The retroactive function means even though the law won’t take effect until 2024, it will include a tax credit someone was eligible to receive in 2022.

Eligible individuals who claimed the credit received the original 6 percent credit. When they receive their 2023 tax credit check, they will also receive a check that will make up the difference of the original rate and the new 30 percent tax rate — or 24 percent.

You don’t need to file an amended 2022 income tax return to receive the extra money.

According to the IRS, in order to qualify for the EITC, a person must have “worked and earned income under $63,398” and have investment income below $11,000. They must also be a U.S. citizen and have a valid Social Security number.