If turbotax shows I have a homestead property tax credit of $720.00, why didn't my tax refund amount change from $110.00?

[ryandura]

When I started my 2016 MI state return. I saw a $110.00 tax refund due in the box at the top of the screen. After completing the property tax questions, tur bo tax showed I got a $720.00 homestead property tax credit. Why was this amount not applied to my total refund? All I will get in my state refund check is $110.00 for tax year 2016. This same problem happened on my 2015 MI return.

[IsabellaG · Accepted solution]

I would expect that your Homestead Property Tax Credit should increase your refund. It appears that you are using a CD/Download version of TurboTax, so you have access to the Forms mode of the program. Check your MI tax return to see what your situation is.

Go to the upper right hand corner and click on Forms. Then on the left side of your screen , in Forms in My Return, scroll down to Michigan Individual.

 Click on MI-1040. Scroll down your return  to the section for Refundable Credits and Payments, and see if line 25 has an entry and if it reduces your taxes on line 24. See the screenshot below. I created a situation with a credit of $832, $1000 of tax withholding and a tax of $1461.

After you view your return, please comment here so we can determine what is happening on your state tax return.

[ryandura]

After reviewing the figures and following the instructions. I saw that the refund of $110.00 was correct per taxes I paid. A little arithmetic and your help solved my problem. Thank you so much.

[IsabellaG]

Glad I could help!