topic Michigan Homestead Property Tax Credit (Form 1040CR) says I don't qualify every year even though I meet all requirments. in State tax filing

Michigan Homestead Property Tax Credit (Form 1040CR) says I don't qualify every year even though I meet all requirments.

gpshslax — Thu, 26 Feb 2026 16:58:07 GMT

I've been using turbo tax for years and this issue has vexed me from the beginning. The Michigan homestead tax credit always says I don't qualify, even though I meet all requirements. Low enough Income, low enough property value, full time Michigan residency, owner, etc. I wanted to know if anyone else has run into this and if they found a solution.

Re: Michigan Homestead Property Tax Credit (Form 1040CR) says I don't qualify every year even tho...

AmyC — Thu, 26 Feb 2026 18:21:23 GMT

The issue is usually the THR: Total household resources (THR) are the total income (taxable and nontaxable) of both spouses or of a single person maintaining a household. Check to see if you have nontaxable income like Social Security or a pension that could be pushing you over the limit.

2025 Homestead Property Tax Credit Information states:

Maximum Taxable Value

$165,400

Total Household Resources (THR) Limit

$71,500

Phase-out begins when Total Household Resources exceeds

$62,500

Credit Limit

$1,900

Re: Michigan Homestead Property Tax Credit (Form 1040CR) says I don't qualify every year even tho...

gpshslax — Thu, 26 Feb 2026 19:00:43 GMT

Thanks for the reply. You may be right that the THR is the issue. Just to be certain, I don't work and I wife and I have no other income besides her job. Do the tax withholdings shown on her W2 get added back the AGI to compute the THR?

Re: Michigan Homestead Property Tax Credit (Form 1040CR) says I don't qualify every year even tho...

DavidD66 — Wed, 04 Mar 2026 00:37:49 GMT

The tax withholdings on your wife's W-2 would not be added back to your AGI because that amount is already included in AGI. Tax withholding is not deducted from income to calculate AGI.