Michigan Homestead Credit

[GigiZ]

Our total income is 43000, our taxable value on home is 23000...we lived here all year.  Yet Turbo Tax is saying we do not qualify for the Homestead Tax Credit in Michigan (for the first time in 12 years).  We have double checked all the income categories and thats the final figures.  Any idea what is up???  Thanks.

[JotikaT2]

I recommend reviewing your input on the state interview questions for Michigan.  Based upon your information provided above, you would qualify.

The applicable entries will be generated as you answer your questions on the state interview questions. 

Review the information you have entered in the section titled "Take a look at Michigan credits and taxes". 

You should see "Homestead Property Tax Credit" under the section titled "Personal, home, and family credits".

If you do not see this screen, review the information entered in the Michigan section for "General info". 

Be sure to answer each question carefully as sometimes one answer to a question is all it takes to result in not being allowed to take the credit.

[GigiZ]

Thank you for reply!  Yep...I went through it all very carefully yet again - no additional income other than W2 income of 43000.  Property taxes paid 1072. Taxable value off property tax statement 23040.  Still says we dont qualify.  Any other suggestions of what to check?  It makes a HUGE difference in our refund amount.  Thanks again.

[JotikaT2]

It appears that your property taxes paid fall below the threshold for being refunded. 

As shown below, Line 33 is "Total Household Resources", or your wages, interest, retirement, etc.  

Assuming your total household resource is only your wages of $43,000, then your base amount to even claim the credit is $$43,000 x 3.2% or $1,376.

Since your property tax paid was only $1,072, the amount you paid is below the level where the credit would kick in.  Therefore you are not eligible to receive the credit this year.