TurboTax only calculates this information if you are living separately. I recommend these steps to troubleshoot the prompts you're getting about Household Resources when the credit does not apply in your circumstance:
1. Check your input about Married Filing Separate
- From the left menu, select My Info
- Make sure that you have answered the questions about Married Filing Separately accurate to your situation
2. TurboTax Online: Go back to Michigan if you want to "untrigger" the questions. This is an optional step. You could go straight to Step 3.
- Option 1: You do not need Form 5049
- From the left menu, select State
- Continue
- Michigan and click Continue
- On the Your 2019 Michigan taxes are ready for us to check page, scroll to Credits and taxes and select Edit
- Under Personal, home and family credits, find Homestead Property Tax Credit and select Revisit
- Do you want to review your total household resources? Select Yes
- Location of Property Click No
- Homestead Property Tax Credit - Identified that you do not qualify for the credit. Click Continue
- Click Done with credits and taxes
- Option 2: You DO need Form 5049
- From the left menu, select State
- Continue
- Michigan and click Continue
- On the Your 2019 Michigan taxes are ready for us to check page, scroll to Credits and taxes and select Edit
- Under Personal, home and family credits, find Homestead Property Tax Credit and select Revisit
- Do you want to review your total household resources? Select Yes
- Location of Property Click Yes
- Any of these sources of household resources? Answer and click continue
- Enter Medical Insurance or HMO Premiums Answer and click continue
- Homestead Property Tax Credit Click No; you will get a screen telling you to file the MI-1040CR manually, which you do not need to do
- Total Household Income Required click Continue
- Click Done with credits and taxes
- Married Filing Separate Click Yes, enter the dates you lived together and click Continue
- Prorate your income on Form 5049 and click Continue
3. TurboTaxOnline: Delete the Michigan Forms related to the Homestead Property Tax Credit
- From the left menu, select Tax Tools
- Tools
- Delete a form
- Scroll to the Michigan forms in your return.
- Michigan Household Resources Worksheet, if you otherwise do not need this form for the MI-1040, click Delete and confirm you want to delete it
- Form 5049, if you otherwise do not need this form for the MI-1040, click Delete and confirm you want to delete it
- MI-1040CR click Delete and confirm you want to delete it
4. TurboTax CD/Download: As @zerotaxesplease suggests, in Forms mode, go to Form 5049 and click Delete Form in lower left corner. Repeat the process for MI-1040CR.
Click the links if you are interested in additional details:
Michigan Homestead Property Tax Credit Summary Information
2019 MI-1040CR Instructions
2019 Form 2105 and Instructions Michigan Homestead Property Tax Credits for Separated or Divorced Taxpayers
2019 Form 5049 and Instructions Worksheet for Married, Filing Separately and Divorced or Separated Claimants
[Edited 3/24/2020 | 3:06 PM PST]
