topic Michigan Homestead value question. in Deductions & credits

Michigan Homestead value question.

dadilisio — Wed, 05 Mar 2025 22:38:43 GMT

Whats the point of having a homestead and saving some tax payments when turbo tax asks the question about the homestated value, and then wipes away the credits, causing the user to have to pay? already paid the tax, now I am getting taxed on the property again. turbo tax never did this in the past.

Re: Michigan Homestead value question.

MayaD — Thu, 06 Mar 2025 14:52:27 GMT

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

You are considered a "natural person" (owner or claimant), and not a living trust, irrevocable trust, or other legal entity, such as a S corporation or LLC, etc.
Your homestead is in Michigan (whether you rent or own).
You were a Michigan Resident for at least 6 months of the year you are filing in.
You have Total Household Resources (THR) under a specified amount adjusted annually.
You own and occupy the homestead you are claiming for credit or you occupy your rental under a contract lease agreement.
For homeowners, the taxable value listed on your property tax statements must be under a specified amount adjusted annually. The taxable value cap does not apply to renters.

michigan.gov

Re: Michigan Homestead value question.

dadilisio — Sat, 08 Mar 2025 12:08:52 GMT

The issue is the interpretation and the turbo tax calculations. The questions Turbo tax asks don’t make any sense, and are vague and ambiguous.

the max threshold in the Michigan publication is lower that the taxable value. Do you enter the spread? Turbotax isn’t calculating a prorated amount, just wiping out all the credit. Thinks for full year residency as well.

please explain… would also prefer a phone discussion. I don’t want to pay $60 for turbo tax advice, because the questions are ambiguous and the calculations don’t align with stated tax code.

Re: Michigan Homestead value question.

AmyC — Thu, 13 Mar 2025 18:12:00 GMT

No, you don't enter the spread, You do not qualify for the credit. The qualifications are:

Homestead Property tax credit

For the 2024 tax season, this credit is worth up to $1,800.
For homeowners, your taxable value must be $160,700 or less.
For both homeowners and renters, your total household resources must be $69,701 or less.
MI has an example here for property tax and assessed value. Reference: Homestead Property Tax Credit