LANSING, Michigan (WJRT) - (02/28/2018) - Michigan taxpayers will be able to continue claiming personal exemptions on their income taxes after Governor Snyder signed a package of bills restoring and increasing the personal exemption.
Federal tax reforms signed into law in December changed federal tax exemptions to zero.
Those exemptions carry over to state tax return forms, so new legislation clarifies Michigan's Income Tax Act so that exemptions at the state level can continue.
The technical fix to the federal reforms will save a family of four more than $600 hundred dollars a year on state income taxes.
The legislation also increases the personal exemption to $4,050 for tax year 2018, and to 4,900 for tax year 2021, six hundred dollars higher than what it was scheduled to reach.
That change that will save a single taxpayer $25.50 a year and a family of four $102.00.
"Well it's going to put more money in their pockets, so I'm proud of what we did together in a bipartisan fashion with my partners in the legislature," said Governor Snyder.
The legislation also allows taxpayers in Michigan cities with an income tax to continue to claim exemptions.