MI1040CR math error(?)

Forum|Forum|3 years ago
February 19, 2023
1 reply
6 views

I don't understand the math being used here by Turbo Tax:

line 42 has value 1201.00

line 43 has value 100%

line 44 has value 1197.00

Last I checked, 100% of x is x, so why is line 44 not 1201.00?

PART 2: PROPERTY TAX CREDIT CALCULATION All filers must complete this section.
42. Enter amount from line 38, 39 or 41, or from Worksheet 4 (see instructions) for FIP/MDHHS
recipients.............................................................................................................................................. 42. 00
43. Percentage from Table B (see instructions) that applies to the amount
on line 33................................................................................................. 43. %
44. PROPERTY TAX CREDIT. Multiply amount on line 42 by percentage on line 43. Enter amount here
and if you file an MI-1040, carry this amount to MI-1040, line 25......................................................... 44. 00

JulieS

Level 15

In some cases the amount on line 44 is limited. If line 33 is over $51,000 or if the return is not for a full year, there would be an alternate calculation.

Here is an excerpt from the instructions for this line:

"If Total Household Resources on line 33 is over $51,000, line 44 is automatically reduced according to the MI-1040CR, Homestead Property Tax Credit instructions.

For deceased taxpayers or part year taxpayers, the maximum credit is a proration of $1,500, this is the days alive or a resident in Michigan divided by number of days in the year multiplied by the $1,500. The credit is limited to this amount or credit that was originally calculated, whichever is less."

If this doesn't fully resolve your concerns, please respond back to this thread and we will help you again.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

LateFiler2022Author

Level 2

This is for a deceased taxpayer (274 days into year), so the reduction to 1201 on line 42 is logical. However, I still cannot follow what's on the forms.

Line 33 annualized income is between 26,000 and 27,000 so line 37 has the reduced amount of 76%.

Line 36 has 2,569.

Line 38 says 36 * 33 is value and enter on line 42. 2,569 * .76 is 1,952.44, but capped at 1,600. TT has 1,201 as the value and I cannot determine where this comes from. 1,201 is .750625 of 1600.

Line 42 has 1,201, which is what TT calculated above

Line 43 has 100%

Line 44 has 1,197.

MichaelG81

Level 7

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

Sign into your online account. Select pick up where I left off or continue your return.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.

Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent”
This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and transmitted to us.

Please provide the Token Number that was generated in the response.

@LateFiler2022

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"