What Changed This Tax Season For Michigan Households
New state credits and a revamped filing system reshaped refunds this spring. Here's who came out ahead — and who owes more than they expected.
Tax season in Michigan looked different this year, and for a lot of households the difference showed up in the size of the refund. A package of state credit changes, phased in over the last two years, reached full effect this filing season, redistributing who benefits and by how much.
Winners and losers
Lower- and middle-income working families saw the biggest gains, thanks to an expanded state earned-income credit that stacks on top of the federal version. For many, it meant a refund several hundred dollars larger than last year.
Higher earners and some retirees, by contrast, found the math less friendly as older exemptions phased down. "The story this year is redistribution, not a broad cut," said Ann Arbor tax preparer Marcus Feld, who spent the spring explaining the shift to clients on both sides of it.
The filing headache
The rollout was not seamless. A new state e-filing portal launched mid-season with enough glitches that some preparers reverted to paper, slowing refunds for early filers. State officials say the bugs are largely resolved — cold comfort for anyone who spent March waiting on a check that used to arrive in weeks.
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