topic I should qualify for the Michigan Homestead Property Tax credit. I make less than $60K, my property is valued at $24K, I'm a year round resident, why don't I qualify? in Deductions & credits

I should qualify for the Michigan Homestead Property Tax credit. I make less than $60K, my property is valued at $24K, I'm a year round resident, why don't I qualify?

horsewomann — Mon, 03 Feb 2020 02:46:44 GMT

I own the property and paid property taxes on it.

Re: I should qualify for the Michigan Homestead Property Tax credit. I make less than $60K, my pr...

DaveF1006 — Mon, 03 Feb 2020 03:11:31 GMT

Please review all of the qualifications in this Turbo Tax link to make sure you qualify for the credit. Here is a summary of the link.

You may claim a property tax credit if all of the following apply:

Your homestead is in Michigan
You were a resident of Michigan for at least six months during the year
You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied
If you own your home, your taxable value is $135,000 or less (unless unoccupied farmland)
Your total household resources are $60,000 or less (part year residents must annualize total household resources to determine if a credit reduction applies)

Re: I should qualify for the Michigan Homestead Property Tax credit. I make less than $60K, my pr...

jmedina71984 — Fri, 07 Feb 2020 00:50:24 GMT

I'm having the same problem. I meet all requirements and it says I do not qualify. How could this be? Is there a glitch in this program? My friend gets the same message. How do we fix this?

Re: I should qualify for the Michigan Homestead Property Tax credit. I make less than $60K, my pr...

KathrynG3 — Fri, 07 Feb 2020 16:25:52 GMT

Here are the 2019 Instructions for the Michigan Homestead Property Tax Credit.

The total household resources are the total income, taxable and nontaxable. Please check the list to see if there were possibly some things that are otherwise not included in your income that this credit counts as income.

Here is a link to the MI 1040CR Homestead Property Tax Credit Claim. Please check the section under Total Household Resources to check if there are any categories that would have otherwise been unexpected to count.

Re: I should qualify for the Michigan Homestead Property Tax credit. I make less than $60K, my pr...

gpshslax — Fri, 27 Mar 2020 20:05:41 GMT

I've experienced the same thing. I had the same issue last year and just gave up.

This year I've double checked all the requirements. We are way under the assessment value. We lived at the residence all year. Etc, etc. The only thing that could be iffy is the Total Household Resources requirement. Even so, my wife makes less than $50k and I'm unemployed. She has student loan interest, which should reduce THR, and we have medical insurance portion of our auto policy that should reduce THR further. The only think I can find that might be considered other income is box 12b code DD from her W-2, but that should be her employer contribution to her medical insurance premium. Based on the state of Michigan Checklist for THR, and the document linked in this thread, that's not an addition for calculation THR.

By my best estimation the THR for our return should be around $45k, and we should qualify. I don't think turbotax is calculating this right, or at the very least need to show the components to users so they can see why they don't qualify.

Re: I should qualify for the Michigan Homestead Property Tax credit. I make less than $60K, my pr...

KathrynG3 — Fri, 27 Mar 2020 21:04:47 GMT

It depends. From the 2019 MI-1040CR Instructions page 1, unemployment is included in total household resources with the maximum allowed of $60,000. The taxable value of the property per the tax assessor cannot be more than $135,000.

Yes, you are correct, the student loan interest and the medical insurance portion of your auto insurance policy do reduce the total household resources.

Life, health, and accident insurance premiums paid by your employer must be added into total household resources while premiums you paid yourself can be subtracted.

Please see the Checklist for Determining the Total Household Resources for the Michigan Homestead Property Tax.

Re: I should qualify for the Michigan Homestead Property Tax credit. I make less than $60K, my pr...

gpshslax — Sat, 28 Mar 2020 12:53:35 GMT

No, as it turns out I was not correct, and neither are you, or anyone else to answer any of these questions on any forum I've found. I figured it out last night, not by reading any of the documentation of the requirements, but by working through the form view of turbo tax very carefully until I reached the point where it stopped.

There is a "hidden" requirement, not listed in the documentation for the credit, that disqualifies you if you don't meet it. Regardless of meeting all the listed requirements, if your property tax paid is less than 3.2% of your Total Household Resources then you don't qualify for the Michigan Homestead Property Tax credit, full stop.

Re: I should qualify for the Michigan Homestead Property Tax credit. I make less than $60K, my pr...

KathrynG3 — Sat, 28 Mar 2020 22:22:16 GMT

Yes, you are correct. That is an important third layer. There are additional steps for the Michigan Homestead Property Tax Credit MI-1040CR after the 3.2% for senior claimants and for disabled claimants, as well.

Step 1: The taxable value of the home is $135,000 or less

Step 2: The total household resources is less than $60,000.

Step 3: Using the table below, the Homestead Property Tax Credit is limited by a certain percentage.

Re: I should qualify for the Michigan Homestead Property Tax credit. I make less than $60K, my pr...

silversparkles50 — Sat, 06 Feb 2021 23:44:33 GMT

Thank you so much for answering this question and letting us know about the hidden 3.2% part of it. I couldn't understand why I wasn't getting this homestead property tax credit, but now it makes sense. Turbo Tax should include this information in their Help menu.

Re: I should qualify for the Michigan Homestead Property Tax credit. I make less than $60K, my pr...

hairnone 56 — Thu, 23 Mar 2023 22:05:42 GMT

i show where i get 202 back. whydoesnt turbo tax show.

Re: I should qualify for the Michigan Homestead Property Tax credit. I make less than $60K, my pr...

MayaD — Fri, 24 Mar 2023 13:30:29 GMT

The credit is not showing on your return?

You should complete the Michigan Homestead Property Tax Credit Claim MI-1040CR to see if you qualify for the credit.

To preview your forms: How do I preview my TurboTax Online return before filing?

You may qualify for a homestead property tax credit if all of the following apply:

Your homestead is in Michigan.
You were a resident of Michigan for at least six months during the year.
You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied.
If you own your home, your taxable value is $143,000 or less.
Your total household resources are $63,000 or less. Part-year residents must annualize total household resources to determine if the credit reduction applies.
Your total household resources do not consist solely of payments received from the Michigan Department of Health and Human Services

There are additional steps for the Michigan Homestead Property Tax Credit MI-1040CR after the 3.2% for senior claimants and for disabled claimants, as well to determine if you qualify for the credit.( check line 34 and 35 on the MI-1040CR form)

Instructions for form MI-1040CR2022, MI-1040CR Instructions

To claim the credit on your return:

Open your return.
Go to State Taxes.
Select Edit next to Michigan return.
Continue until you get to the screen Homestead Property Tax Credit