Michigan's Homestead Property Credit, Form MI-1040CR, is a refundable credit for both homeowners and renters. The Homestead Property Credit is for the taxpayer's main residence. Only one home is considered a homestead at a time, and any additional property owned or rented to others is not considered a homestead. The taxpayer must be the owner of the home and occupant or be contracted to pay rent and occupy the dwelling. See here if you need further guidance and instruction.
To qualify for the property tax credit, all the following must apply:
- Own or contracted to pay rent and occupied a Michigan homestead for at least 6 months on which property taxes and/or service fees were levied. If the taxpayer is a homeowner, the taxable value must be $154,000 or less (unless unoccupied farmland).
- Taxpayer total household resources were $67,300 or less (part year residents must annualize total household resources to determine if a credit reduction applies).
- Taxpayer total household resources do not consist solely of payments received from the Michigan Department of Health and Human Services
To enter the Michigan Homestead Property Credit in TaxSlayer Pro, from the Michigan Tax Return Menu select:
- Payments and Refundable Credit
- Homestead Property Tax Credit (1040CR) - Answer Yes to confirm you wish to complete it.
- Select Type of Property Tax Credit Claimed - Select either Homeowners or Renter.
- Personal Information - Select this menu and evaluate each question or condition to see if No needs to be changed to Yes.
- Property Tax levied - If a homeowner, select this menu and enter the required amounts.
- Net Rent Paid - If a renter, select this menu and enter the required amounts.
- Total Household Resources - Select this menu, entering adjustments as needed. This menu is also where Form 5049, Married Filing Separately and Divorced or Separated Claimants Schedule is found.
- Alternate Housing Facilities - If the taxpayer lived in subsidized housing, complete this section as needed.
Additional Information:
MI: Homestead Property Tax Credit Information