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westwood18
Returning Member

MI-1040CR - What counts as a "gift"?

On the Homestead Property Tax Credit Claim form (MI-1040 CR), you need to report total household resources (defined as "the total income [taxable and nontaxable] of both spouses or of a single person maintaining a household."  They then ask a lot of questions to determine your total household resources, including asking you to report gifts.  

Specifically, line 24 asks you to report "gifts or expenses pain on your behalf."  The instructions for this line state: "Enter the value over $300 in gifts of cash or merchandise received, or expenses paid on your behalf (rent, taxes, utilities, food, medical care, etc.) by parents, relatives, or friends.  This includes the amount of financial support you received if you are claimed as a dependent on someone else's return.  Do not include government payments made directly to third parties such as an educational institution or subsidized housing project."

My question: What counts as "gifts"?  Does this mean I need to report money/gift cards received from birthdays, Christmas, etc.??  This seems crazy and something I would not have to report, but maybe I'm wrong and I should be reporting the value of all gifts I receive throughout the year?  Any thoughts?

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7 Replies
KrisD
Intuit Alumni

MI-1040CR - What counts as a "gift"?

It would, but only if if people gift you more than 300/year. 

You don't claim the gifts as taxable income, it is only used to calculate the Michigan Home Heating Credit. 

westwood18
Returning Member

MI-1040CR - What counts as a "gift"?

THanks.  I realize that I don't claim the gifts as taxable income, but I'm still surprised that I need to report gifts at all.  I've never heard of people reporting gifts they receive for Christmas, birthdays, etc. on their taxes, even if just for a credit.  But I guess I should, since during the course of an entire year, the total gifts I receive are over $300.
KrisD
Intuit Alumni

MI-1040CR - What counts as a "gift"?

That would be what the State of Michigan would want you to do.
westwood18
Returning Member

MI-1040CR - What counts as a "gift"?

Can I subtract the $300 from the total gifts received?  For example, if I receive $1000 in gifts, can I report $700?
KrisD
Intuit Alumni

MI-1040CR - What counts as a "gift"?

Yes, it is the amount over $300.
Marwin
New Member

MI-1040CR - What counts as a "gift"?

Am I to include the tuition my parents pay directly to the university as part of my Total Household Resources for the Homestead property tax credit calculation?

LinaJ2020
Expert Alumni

MI-1040CR - What counts as a "gift"?

Yes, you should.  That is considered as a gift.  You would enter on line 24 of Form MI-1040CR

 

I am also attaching the following links for your reference:

 

https://www.michigan.gov/documents/taxes/ChecklistDetermineTHR_444822_7.pdf

 

https://www.michigan.gov/documents/taxes/1040CR_Instructions_508925_7.pdf, under Total Household Resources

 

@Marwin

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