Michigan taxpayers who wish to claim a homestead property tax credit must complete form MI-1040CR. Eligible filers had a homestead in Michigan, lived there for at least six months during the tax year and either own the home and pay property taxes or have a rental contract and pay rent. The credit is not available if your total household resources were more than $50,000 or if the taxable value of the home exceeds $135,000.
Fill out lines 1 through 7 on the MI-1040CR. This section includes your name, address, and Social Security number and those of your spouse. Information on age- or disability-related exceptions, filing status and your Michigan residency also are entered.
Enter the taxable value of your home and the property taxes assessed on lines 9 and 10 if you're a homeowner. Enter the total rent you paid on line 11 if you're a renter, then multiply by 20 percent and enter that amount on line 12. Add lines 10 and 12, and enter the total on line 13.
Enter your income from all sources onto lines 14 through 27, add them together and enter the total on line 28. Some income is exempt from this calculation, such as an inheritance from a spouse, state and city income tax refunds and certain government assistance.
Carry line 28 to line 29. Calculate the total amount of adjustments to your household resources, such as alimony paid, student loan interest or payments to individual retirement accounts or qualified plans, and enter it on line 30. Enter the total amount you paid for health insurance premiums, including vision and dental, on line 31. Do not include amounts paid through pre-tax payroll deductions. Complete the calculations on the form to arrive at your total household resources.
Multiply your total household resources by 3.5 percent, and enter the number on line 34. Subtract this amount from line 13, which represents your total tax or rent, and enter the result on line 35. If line 34 is greater than line 13, you are not eligible for the homestead property tax credit.
Fill out Part 1, either Section A, B or C, to determine your maximum allowed credit if you are eligible. Carry that amount to line 42 in Part 2. Find the appropriate percentage from Table B in the instructions, multiply by line 42 and enter the result on line 44. This is your property tax credit.
Fill out Part 3 if you moved during the tax year, Part 4 if you rented and Part 5 if you lived in an alternative housing facility. Indicate if you would like direct deposit of your property tax credit. Sign and date the certification and submit your form to the Michigan Department of Treasury.
The printed instructions for form MI-1040CR contain detailed information regarding household income, eligibility and line-by-line instructions for filling out the form.
The Michigan homestead property tax credit is based on the property taxes assessed on your home during the tax year, not on the taxes you paid. In many parts of Michigan, winter taxes are mailed in December but are not due until the following February. Federal itemized deductions, on the other hand, are based on taxes you paid during the tax year.
- Michigan Department of Treasury: Form MI-1040CR
- Michigan Department of Treasury: MI-1040CR Instructions
- IRS. "Here Are Five Facts About the New Form 1040." Accessed June 25, 2020.
- IRS. "Credits and Deductions for Individuals." Accessed June 25, 2020.
- IRS. "Publication 972 Child Tax Credit and Credit for Other Dependents." Page 5. Accessed June 25, 2020.
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- IRS. "The Premium Tax Credit - The Basics." Accessed June 25, 2020.
- Social Security Administration. "OASDI and SSI Program Rates & Limits, 2019." Accessed June 25, 2020.