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Level 1
posted Apr 14, 2024 1:56:15 PM

MI taxable value" of your homestead property - how to avoid

Never had Turbotax asked me for the taxable value of my property in MI. When I put the number, the amount I needed to pay skyrocketed.

 

What part of the state tax return requires this info? If I don't need to claim the credit, I'd rather that I don't claim this credit, which will force Turbotax to ask this question.

 

How do I avoid this question?

 

 

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1 Replies
Expert Alumni
Apr 22, 2024 9:15:47 AM

This question is to determine if you are eligible for the Michigan Homestaed Property Tax Credit. You may claim this credit if you meet the following criteria:

 

  • You own or rent a home, condo, or apartment
  • Your home value is less than $154,400
  • Your income level is $67,300 or less
  • You're a Michigan resident

When you are asked about the taxable value of your home, it's just asking you the value of your home as it is listed on your property tax bill. You are not paying income tax on the value of your home. 

 

If answering the question changed your tax return, it must be that earlier information made it appear as if you were eligible for the credit and entering your home value made it clear that you weren't.