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MI HB4592

MI HB4592
Individual income tax: deductions; deduction for all compensation earned by a taxpayer 17 years of age or younger; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).


summary

Introduced
06/10/2025
In Committee
06/10/2025
Crossed Over
Passed
Dead

Introduced Session

103rd Legislature

Bill Summary

A bill to amend 1967 PA 281, entitled"Income tax act of 1967,"by amending section 30 (MCL 206.30), as amended by 2023 PA 4.

AI Summary

This bill modifies Michigan's income tax law to provide a tax deduction for compensation earned by individuals who are 17 years of age or younger, effective for tax years beginning on or after January 1, 2026. Specifically, the bill adds a new provision that allows taxpayers to deduct all compensation received during the tax year by either: 1) a taxpayer who is 17 years of age or younger, or 2) a dependent of a taxpayer who is 17 years of age or younger. This deduction would apply to the taxpayer's adjusted gross income, effectively reducing the amount of income subject to state income tax for young workers. The bill aims to provide a financial benefit to younger workers by allowing them to keep more of their earned income, potentially encouraging youth employment and providing additional financial support to families with working teenagers or dependent children.

Committee Categories

Budget and Finance

Sponsors (10)

Last Action

Bill Electronically Reproduced 06/10/2025 (on 06/11/2025)

bill text


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