I am very perplexed by this tax credit.
https://www.michigan.gov/taxes/0,4676,7-238-43535_43538-155081--,00.html
Using one of the popular tax prep sites to do my taxes, I come across the question:
"Add / Edit / Delete Michigan Rented Homestead
Do you need to enter any more homes you rented during 2021?
Your home can be a house, apartment, condo, mobile home, or any place that is your permanent home. A vacation home doesn't qualify."
And when I add one, it asks for the Address of the rental property, the "landowner information", months rented, and rent paid.
The projected tax difference between this being entered or not is me owing the state taxes and the state owing me a few hundred; hence why I am being very cautious about filling this out.
I just live in a regular apartment complex in Michigan, with a roommate, paying half. My income and place I am living is the same as the year before and I was never asked about this before.
I don't exactly know who the "landowner" is, it's probably a corporation. I have the address for the front office there at the moment, but that probably isn't actually the owner, since thats just part of the property I suppose.
I seem to have the general requirements I can tell from being able to have the credit such as being a renter under contract, the lease agreement, within a certain income cap.
Do I have this right or very wrong? Please Halp.
Edit: Taxes all done. Thank you everyone.
You have everything right. Since pay rent to live in a Michigan property and meet the income requirements you could be eligible for the Homestead Property Tax credit on your MI return. Whoever is contracted to pay the rent is eligible for the credit. If two people are on the lease you will split the rental payment.
You will find the topic in the MI state return in the "Credits" section. It is called the "Homestead Property Tax Credit."
The office manager should have the landowner information you need to complete the interview.
Here is a summary of the requirements:
You may claim this property tax credit if you meet the following criteria:
You own or rent a home, condo, or apartment
Your home value is less than $136,600
Your income level is $60,600 or less
You're a Michigan resident