michigan disabled veterans credit

[Jimbo25]

Can someone who is not 100% from the VA, but does have service connected disability(s) claim the Michigan deduction under Mi-1040CR-2?  Depending on how it is read, income may or may not affect eligibility, and Turbotax doesnt require completing any forms for it? Looking for clarification on who actually qualifies for this.   

[Vanessa A]

Yes, if you have a service related disability, you may still be able to claim the Michigan deduction under MI-1040CR-2.  The exact wording in the instructions is "A veteran with a service-connected disability or veteran’s surviving spouse". It does not require 100% from the VA, but the credit is limited based on your percentage disabled per the VA.

In any case, you are ineligible if your total household resources are over $71,200

This would be on MI-1040CR-2, there is not another form that needs completed, but you should have questions regarding your percentage of disability. 

(Edited 2/24/26 @ 7:04AM PST) @Jimbo25 

[Jimbo25]

Hi Vanessa,

Thanks for responding, that's what is confusing me. TurboTax doesn't have me enter the VA percentage, and my income is over the $67,300, but TurboTax still gave me the credit ( less than $20)? 

[Vanessa A]

I updated the response above.  The amount for 2023 was $67,300.  For 2025, it is $71,200. 

Which option did you choose when asked if any special situations apply?  If you choose Veteran with service connected disability (or surviving spouse), the next screen will ask you the percentage of your service related disability.

If you are 65 or older, then the service connected disability is irrelevant as you would qualify based on your age. 

[Jimbo25]

Yeah, I'm still over that amount. I checked the box for disabled veteran and then it takes me to income for any additional income I didn't already claim. There is no next box to input the percentage 🤷