Michigan Homestead Property Tax Credit (Form 1040CR) says I don't qualify every year even though I meet all requirments.

[gpshslax]

I've been using turbo tax for years and this issue has vexed me from the beginning.  The Michigan homestead tax credit always says I don't qualify, even though I meet all requirements.  Low enough Income, low enough property value, full time Michigan residency, owner, etc. I wanted to know if anyone else has run into this and if they found a solution.

[AmyC]

The issue is usually the THR: Total household resources (THR) are the total income (taxable and nontaxable) of both spouses or of a single person maintaining a household.  Check to see if you have nontaxable income like Social Security or a pension that could be pushing you over the limit.

2025 Homestead Property Tax Credit Information states:

Maximum Taxable Value

$165,400

Total Household Resources (THR) Limit

$71,500

Phase-out begins when Total Household Resources exceeds

$62,500

Credit Limit

$1,900

[gpshslax]

Thanks for the reply.  You may be right that the THR is the issue.  Just to be certain, I don't work and I wife and I have no other income besides her job.  Do the tax withholdings shown on her W2 get added back the AGI to compute the THR?

[DavidD66]

The tax withholdings on your wife's W-2 would not be added back to your AGI because that amount is already included in AGI.  Tax withholding is not deducted from income to calculate AGI.