Summary
Michigan Governor Gretchen Whitmer signed a law that removes state taxes on income from tips, overtime, and Social Security. The change aims to save money for retirees and workers earning hourly wages or tips. This move aligns with similar federal tax changes made earlier this year.
Key Facts
- Michigan's new law eliminates state taxes on tipped, overtime, and Social Security incomes.
- Governor Whitmer signed the law as part of the new state budget.
- The tax changes intend to help retirees and working families save money.
- Lawmakers approved the tax exemptions last week before Whitmer signed them into law.
- The federal government also recently enacted similar tax deductions for workers and retirees.
- Workers can now deduct up to $25,000 from income earned from tips and overtime under federal law.
- Retirees can receive up to a $20,000 or $40,000 tax exemption, depending on their filing status, under federal law.
- Both Michigan and federal officials aim to give people more financial control and spending power through these changes.
