Dear Friend, 

As we head into tax season, I want to make sure you are taking full advantage of recent tax cuts we’ve made to lower costs for Michiganders and that you have the resources to file your taxes easily and safely.

In 2023, I signed legislation to roll back the retirement tax and quintuple the Working Families Tax Credit, delivering a $1 billion tax cut for working families and retirees. This year, hundreds of thousands of senior households will save an average of $1,000 on their taxes and 650,000 families—home to half of the kids in Michigan—will get an average combined tax refund of $3,200 bucks.

Check out the tips below to see if you qualify for a tax break, how to take advantage of these savings on your upcoming tax filings if you qualify, and how to protect yourself from potential fraud. 

Together, let’s navigate this tax season with confidence and put money back in Michiganders’ pockets.

Sincerely,

Take Advantage of Michigan Tax Savings

Rolling Back the Retirement Tax

In 2012, Michigan’s tax code was rewritten to slap a retirement tax on hundreds of thousands of Michiganders. Money that was promised to Michigan seniors was taken out of their hands. Under the legislation I signed in 2023, Michigan has begun phasing out the retirement tax over four years, saving 650,000 senior households an average of $1,000 a year.

This tax season, on 2024 tax returns, most qualifying seniors will see a 50% reduction in their pension tax. By the 2026 tax year, all qualifying seniors will receive 100% of their pension funds tax-free. Additionally, any public safety officers, like police and firefighters, are 100% exempt from any taxes on their retirement funds.

Rolling back the retirement tax puts money back in our retirees’ pockets for non-negotiables like prescriptions, housing, utilities, car payments, or gifts for grandkids. After working for a lifetime, Michiganders deserve to be able to retire and keep every hard-earned dollar of their retirement funds.

If you are retired or plan to retire soon, check out how to take advantage of these savings in your upcoming tax filings. See more information about your specific situation here:

Working Families Tax Credit

In March of 2023, I signed legislation quintupling the Working Families Tax Credit, from 6% to 30%, delivering an average combined tax refund of $3,200 to 700,000 families. This directly benefits nearly one million kids – almost half the kids in Michigan – and is helping working families get the extra support they need to make ends meet and invest in their future.

To qualify, individuals must meet certain requirements and file a federal income tax return. 

Protecting Yourself from Fraud

Be vigilant about protecting your financial data, especially during tax season when fraud is more common. Always verify the authenticity of any communication requesting personal or financial information.

This tax season, Attorney General Dana Nessel is encouraging Michigan residents to file their taxes early to help prevent tax-related identity theft. Here are some tips:

• Protect your personal information — and that of your dependents.
• Do not give out your Social Security Number (SSN) unless there’s a good reason and you’re sure it will be protected.
• File your tax return as early as you can.
• If you file electronically, use a secure internet connection.
• If filing by mail, send your tax return directly from the post office.
• Research a tax preparer thoroughly before you hand over your personal information — and never send your personal information in a text or email.

Tax Resources

For any additional guidance you may need when filing your taxes, please visit the Michigan Department of Treasury’s website. There, you will find comprehensive resources regarding tax filing, credits, and exemptions:

• Michigan Department of Treasury - Taxes
• Individual Income Tax Guidance
• Individual Income Tax eService Help Center
• New Developments For Tax Year 2024

I am committed to ensuring that Michigan’s working families and retirees have the tools and resources they need to take advantage of new tax savings. Protect yourself by staying informed and utilizing the resources above.