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Level 2
January 23, 2022
Solved

Child support not taxable but reducing my refund?

  • January 23, 2022
  • 3 replies
  • 39 views

Everything I find says child support is not taxable. But it asks for it on my State return and then deducts money from my refund when I enter it. Why is that if it is not taxable?

Best answer by RBBrittain

Though child support is not taxable in Michigan (same as Federal), it is taken into account as household resources in computing the Homestead Property Tax Credit which is part of your tax return. Thus, child support received reduces your property tax credit. See Michigan forms & instructions at https://www.michigan.gov/documents/taxes/Book_1040_with_forms_744829_7.pdf .

3 replies

Alumni - Champ
January 23, 2022

Which state?

Ladop221Author
Level 2
January 23, 2022

Michigan

Alumni - Champ
January 23, 2022

Though child support is not taxable in Michigan (same as Federal), it is taken into account as household resources in computing the Homestead Property Tax Credit which is part of your tax return. Thus, child support received reduces your property tax credit. See Michigan forms & instructions at https://www.michigan.gov/documents/taxes/Book_1040_with_forms_744829_7.pdf .