I used TurboTax online basic to file my State of Michigan Income Tax. When I used TaxSlayer, there was no property tax credit (free filing or cost $0). When I used TurboTax, there was property tax credit ($685), but there was fee ($78) to pay to TurboTax. I thought TurboTax was a better deal even with the price to pay. After filing state income tax, I saw a message saying that state income tax was accepted at my TurboTax account. However I got no property tax credit for Michigan State Income tax return and received a letter from state of Michigan treasury saying that my income tax calculation is adjusted to remove property tax credit. I requested TurboTax to return my payment ($78) and yet I am still waiting. This is very bad. I felt deceived badly by TurboTax.
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@A2S sorry that happened. I don't work for TT. This forum is just a public forum. You would have to contact TT for any claims. Link for how to make a claim: https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/submit-claim-turb...
What I am betting happened is You may have answered the interview questions wrong when doing your return and that is why the erroneous amount was claimed. Do you live with someone else whom is the owner of the home in MI or are you a student or do not live there all year? There is an interview and it does work. You may want to check your entries to the rebate as that will be the first thing they look at when determining if there was an error or not.
You may claim a property tax credit if all of the following
apply:
• Your homestead is located in Michigan
• You were a Michigan resident at least six months of 2022
• You own your Michigan homestead and property taxes
were levied in 2022, or you paid rent under a rental
contract.
You can have only one homestead at a time, and you must be
the occupant as well as the owner or renter. Your homestead
can be a rented apartment or a mobile home on a lot in a
mobile home park. A vacation home or income property is
not considered your homestead.
Your homestead is in your state of domicile. Domicile is the
place where you have your permanent home. It is the place
to which you plan to return whenever you go away. College
students and others whose permanent homes are not in
Michigan are not Michigan residents. Domicile continues
until you establish a new permanent home.
Property tax credit claims may not be submitted on
behalf of minor children. Filers claimed as a dependent
on someone else’s return see instructions for line 24 on
page 32 to correctly report support received.
You may not claim a property tax credit if your total
household resources are over $63,000. In addition, you
may not claim a property tax credit if your taxable value
exceeds $143,000 (excluding vacant farmland classified as
agricultural). The computed credit is reduced by 10 percent
for every $1,000 (or part of $1,000) that total household
resources exceed $54,000. If filing a part-year return, you
must annualize total household resources to determine if the
income limitation apply.
When reviewing my MI Homestead Property Tax Credit Claim MI-1040CR in forms mode. I see a negative number in field #17 "Net royalty or rent income". However, the form clearly states, “If negative enter ‘0’”. The Michigan Department of Treasury corrected my form which made me ineligible for a Property Tax Credit and adjusted my tax by over $700.
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