I received a letter from the Michigan Treasury that my Homestead/Heating Credit has been adjusted to $0 since income < living expenses. I live through my student loans...

[gironzaf]

I understand student loans aren't taxable income so they weren't included on my tax forms since I am currently still a full-time student and haven't made any interest payment on my loans yet. I'm not sure why they have disallowed my credits, I have received them before but now am likely going to have to go through a lengthy appeals process. I was just posting this question before doing that to make sure that I am correct in believing that I can receive these credits (TurboTax seemed to have thought so...)

[Anita01]

Total household income, or resources, as they call it, are considered when applying for this credit.  Loans, however, are shown as not counting towards household resources.  You can use the following chart from MI Department of Revenue to see what income, taxable or nontaxable, you should have included.

http://www.michigan.gov/documents/taxes/CC-41011_608354_7.pdf

[gironzaf]

Thank you for your response. So am I not eligible then?

[Anita01]

You should be eligible because the form says you do not need to include loan money as part of your resources.

[Anita01]

For anyone using loan money for household expenses, their resources would always show as lower than their expenses.

[gironzaf]

Ok then, I will start the appeals process. Thank you!

[andi29]

I received a similar letter, not student loans but same concept. Why is Turbo tax not catching this? Im in MI also and the wording is exact. I went from a refund of 1,300 to $105

[cmscorpio23]

Hello, this same thing happened to me on my 2018 taxes. I was wondering if you had any success with the appeals process, and what you submitted?

[gironzaf]

I did, it took a while and they eventually relented. In the end confirmation came from the 2nd page on my 1098-T form which shows the loan disbursement. I had sent in twice (they scan it in themselves and apparently the 2nd page was too light to see).