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Homestead credits are part of your state return. Please clarify your question by letting us know which state you are filing?
State of Michigan. What is a death benefit paid to a dependent?
Homesteader credits have income limitations. A child receiving income is part of the household income. If no child in your house is receiving death benefits, this does not apply to you.
For household limits, see MI-1040CR Instructions.
Death benefit - someone died and the child benefits with income. For an official answer see:
Death benefits for children in Michigan
Michigan Legislature - Section 418.331
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