Michigan 1040CR - should credit itself be pro-rated or only property taxes?

[crplotne]

I am using TurboTax Online to complete my 2023 federal and state taxes as a part-year resident of Illinois and Michigan. I was resident in Michigan for 275 days in 2023. My question is about the Homestead Credit (form 1040CR). The TurboTax Online interview requests to know my part-year resident status both for overall income tax and homestead credit purposes. Looking at the form and instructions, the correct approach for a part-year resident appears to be pro-rating the property taxes paid based on the days of residency. The instructions for 2023 for 1040CR do NOT say to pro-rate the credit itself once it is calculated based on the pro-rated taxes paid. In the year 2020, the instructions DID state to pro-rate the credit itself, however this has changed starting in 2021. The 2020 form had a section called "Maximum Credit Limit for Deceased Taxpayers and Part-year Residents," while the same section in 2023 is called only "Maximum Credit for Deceased Taxpayers." The 2020 instructions include an example for a part-year resident, for whom the maximum credit is pro-rated. The 2023 instructions do NOT contain this example. 

2020 instructions:https://www.michigan.gov/-/media/Project/Websites/taxes/Forms/2020/2020-IIT-Forms/MI-1040CR_Property...

2023 instructions:https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/2023/2023-IIT-Forms/MI-1040CR-In...

I believe TurboTax is erroneously pro-rating my credit in line 44. My line 42 amount is $1700 (the maximum for 2023), my line 43 is 100%, and my line 44 is $1276, which is 75% of $1700, I believe based on my part-year residency. 

Does anyone have any guidance on this? The instructions in 2020 appear to double-pro-rate a part-year resident: the taxes on which the credit is based are pro-rated, and then the credit itself is pro-rated. It looks like Michigan corrected this in 2021 and going forward to only pro-rate once, at the step where taxes are pro-rated in Part 3 of the form. But TurboTax is maybe using the old instructions? 

[AmyC]

I made up super easy income of $416 for a part year resident. I used 8 months of residency. The program properly annualized the income to create the credit based on a full year of residency based on the instructions you provided.

From here, the program continues following the form

It sounds like your percentage is not working. You may have data stuck. Follow these steps:

Desktop version: 

1. Delete the form
2. Save your return while closing the program.
3. Update the program
4. Open
5. Enter the information again.

Online version:

A full or corrupted cache can cause problems in TurboTax, so sometimes you need to clear your cache (that is, remove these temporary files).

For stuck information follow these steps:

1. Delete the form/ worksheet- if possible, see How to Delete  
2. Log out of your return and try one or more of the following:
   • Don't use Internet Explorer.
   • Clear cache and cookies,
   • Sign in using a different browser.
   • Sign in using a different device.
3. Log back into your return.
   • Enter the information again.

[crplotne]

That doesn't actually answer my question. I realize my situation is unusual. I had little income last year but a large property tax bill, so I should qualify for the maximum credit of 1700. I opted to print and file and change the value rather than fight with TT online any more.