I pay rent in Ann Arbor MI but not property taxes on that rental unit. To qualify for homestead credit, is paying rent enough or do I need to pay property taxes directly?

[MinhT1]

As a renter in Michigan, you may qualify for the Michigan Homestead Property Tax credit.

Please use this checklist to verify if you are eligible.

[mittal7]

Hi I understand. But I have trouble verifying my eligibility. TurboTax states to claim homestead property tax credit:

You own or rent and resided in a Michigan home on which property taxes were paid

For me to meet this condition, do I have to pay property taxes directly or me renting a unit on which property taxes were paid by the owner sufficient?

[JohnW152]

No, you don't have to pay the property taxes directly, if you're a renter.  You renting a unit on which property taxes were paid will qualify you. 

For more detail, please see Rent Eligible for Credit in the MI-1040CR Instructions.

[mittal7]

Thank you John! That was helpful. One clarification on the document you sent; it states:

"Your homestead is in your state of domicile. Domicile is the place where you have your permanent home. It is the place to which you plan to return whenever you go away. College students and others whose permanent homes are not in Michigan are not Michigan residents"

I am not a us citizen or green card holder, but on temporary visa. However I have a MI license and for tax purposes I am considered a MI resident. Can I then say I am domiciled in MI or do I have to be a citizen to call MI a "permanent home"?

Thanks!

[DaveF1006]

According to this, you may claim the homestead credit if:

1. Your homestead is located in Michigan •
2. You were a Michigan resident at least six months of 2022.  
3. You pay property taxes or rent on your Michigan homestead •
4. You were contracted to pay rent.

There is no mention alien requirements so you may claim the credit if you qualify in accordance with the requirements listed above. 

@mittal7