HB4488

Michigan HB4488 provides a tax credit of up to $5,000 per qualified dependent under age 3 for working parents.

Michigan HB4488 amends the state's individual income tax law to introduce a working parent tax credit. This credit allows a qualified taxpayer to claim up to $5,000 per qualified dependent who is 3 years old or younger at the end of the tax year. A qualified dependent is defined as a qualifying child under federal tax law. A taxpayer can claim this credit for up to three qualified dependents per tax year. If the credit exceeds the taxpayer's tax liability, the excess amount must be refunded. To qualify, the taxpayer must have earned income of at least $10,000 for the tax year.