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 ProWeb, from the Michigan Tax Return Menu select:
- Credits
- Homestead Property Tax Credit and Home Heating Credit (MI-1040CR, MI-1040CR2, and MI-1040CR7 )
- Homestead Property Tax Credit Claim (MI-1040CR)
- Personal Information is automatically carried to the Form MI-1040-CR. The following questions will need to be completed to finalize Personal Information:
- Are you eligible for the Homestead Property Tax Credit? - Yes or No.
- Select whether you are a Homeowner or Renter - Make selection in dropdown menu.
- Are you an unremarried spouse of person who was 65 or older at the time of death? - Evaluate the question to see if No needs to be changed to Yes.
- Does the taxable value of your homestead include unoccupied farmland classified as agricultural by your assessor? - Evaluate the question to see if No needs to be changed to Yes.
- The corresponding part will need to be completed based on the taxpayer's residency type
- Part 1: Complete if you are a Homeowner
- Part 2: Complete if you are a Renter
- Part 3: Complete if you are an Occupant of a Housing Facility - If the taxpayer lived in subsidized housing, complete this section as needed.
- Worksheet 2105 for Separated or Divorced Taxpayers - Select this menu if applicable, entering adjustments as needed. Form 5049, Married Filing Separately and Divorced or Separated Claimants Schedule is required to correctly calculate household resources.
Additional Information:
MI: Homestead Property Tax Credit Information