Thank you for your reply; However, I disagree after reading the details of the MI instructions, in that the there is no mention that eligibility for the MI Homestead Property Tax (HPT) credit requires that you NOT be a dependent on another taxpayer's return.
While that little detail is actually singled out for the MI Home Heating Credit, it is not for the HPT Credit. In fact the filer can be a dependent on another return for the MI HPT Credit eligibility, however the total "household resources" (MI 1040 line #24) must of course include the amount that the parent provided to the student that allows them to be considered a dependent (i.e. over 50% of the dependent student's total household resources).
Because the off-campus apartment is being leased in the student's name for the full 12 month year (i.e. under contract), and the student pays the rent (receipts saved), it appears that the student qualifies. It seems that since the student plans will continue to rent 12 month leases to finish college, it becomes "the place the student returns to from being away" per MI definition, so the apartment nearby the university has essentially become the student's permanent home or "domicile", based upon the definition for the purposes of MI tax code. The is no indication that a MI resident who is a dependent college student, cannot consider their off-campus apartment their domicile / permanent home for MI tax code. The dependent student's MI return therefore would need to use the student's apartment address.
With respect to the student qualifying as a dependent under the FEDERAL tax code to count as an exemption on Fed 1040 (and therefore as an exemption on the MI return), the federal instructions indicate a child, of age 24 or less, who is absent due to the special circumstance of "education", still qualifies as being a member of the parent's household, and counts as a dependent exemption when receiving more than half of support from the parent. The dependent student's FED return therefore would need to use the parent's address.
If I am mis-interpreting or missing a tax rule somewhere that disqualifies eligibility for the MI HPT Credit for the situation that I have presented, it would be great if someone who is very familiar with MI tax code & returns could explain the fault... There must be many other parent & student taxpayers in this exact situation either already filing for the credit, or wanting to if it is allowed.
