Instructions For Form Mi-1040cr - Homestead Property Tax Credit

Filing Separate State Returns and Maintaining

MI-1310. Enter the names of the deceased persons in the

Separate Homesteads

Filer’s and Spouse’s Name lines and the representative’s or

claimant’s name, title, and address in the Home Address line.

Spouses who file separate Michigan income tax returns and

See “Deceased Taxpayer Chart of Examples” on page 59.

did not share a household during the tax year may each claim a

Annualizing Total Household Resources

credit. Each credit is based on the individual taxes or rent and

individual total household resources for each person. This only

If you are filing a part-year credit (for a deceased taxpayer or

applies to homes located in Michigan. They each must

a part-year resident), you must annualize the total household

complete Form 5049 and provide an explanation in Part 3.

resources to determine if the credit reduction applies.

Married Filing Separately and Shared a

(Exception: the surviving spouse filing a joint claim does not

Homestead

have to annualize the deceased spouse’s income.)

• If you have checked a box on line 5 and your annualized

Spouses who file separate Michigan income tax returns but

total household resources are less than $6,000 use your

shared a homestead for the entire year are entitled to one

annualized total household resources to determine your

property tax credit. The credit claim must be based on the

percentage of taxes not refundable from MI-1040CR

total household resources of both spouses during the time

Table 2, page 29.

the homestead was shared. A spouse claiming the credit

• A senior, age 65 or older, filing a part-year credit must

must complete Form 5049 and include the total household

calculate annualized total household resources before

resources for both spouses. A spouse filing the credit

using MI-1040CR Table A, page 29.

should also include the other spouse’s income on the Other

• If the annualized income is more than $41,000 for any

Nontaxable Income line of the Homestead Property Tax

claimant, use annualized total household resources to

Credit Claim. You and your spouse may choose how you

determine the percentage allowable in MI-1040CR

want to divide the credit. If each spouse claims a portion of

Table B, page 30.

the credit, attach a copy of the claim showing each spouse’s

share of the credit to each income tax return. Enter only your

To annualize total household resources (project what it

portion of the credit on your MI-1040CR, line 44.

would have been for a full year):

Separated or Divorced in 2013

Step 1: Divide 365 by the number of days the taxpayer was a

Michigan resident in 2013.

Figure your credit based on the taxes you paid together

before your separation plus the taxes you paid individually

Step 2: Multiply the answer from step 1 by the taxpayer’s

after your separation. Complete and attach Form 5049

total household resources (MI-1040CR, line 33). The result is

and attach a schedule showing your computation. For

the annualized total household resources.

more information or to help you calculate a prorated

Married During 2013

taxes,

see

Michigan Homestead Property

Tax

Credits

for

Separated

Divorced

Taxpayers

If you married during 2013, combine each spouse’s share of

(Form 2105).

taxes or rent for the period of time you or your spouse lived

in separate homesteads prior to getting married. Then add

Example: Karl and Cathy separated on October 2, 2013. The

this to the prorated taxes or rent for your marital home after

annual taxes on the home they owned were $1,860. Cathy

your marriage. You are only allowed to claim rent and taxes

continued to live in the home and Karl moved to an apartment

on homesteads located in Michigan.

on October 2 and paid $350 per month rent for the rest of the

year. Cathy earned $20,000 and Karl earned $25,000. They

Filing a Joint Return and Maintaining Separate

lived together for 274 days.

Homesteads

Step 1: Calculate the prorated total household resources for

Your claim must be based on the tax or rent for 12 months

each spouse for the 274 days they lived together. Divide each

on only one home. The total household resources must be the

spouse’s total income by 365 days, then multiply that figure

combined income of both you and your spouse for the entire

by 274.

year.

Cathy ($20,000/365) x 274 = $15,014

Worksheet for Married, Filing Separately and

Divorced or Separated Claimants (Form 5049)

Karl ($25,000/365) x 274 = $18,767

Cathy and Karl must each complete Form 5049 and list

This form can be found at

income earned during the period they lived together.

Submit Form 5049 with Form MI-1040CR, MI-1040CR-2 or

MI-1040CR-7 if any of the following situations apply to you:

Step 2: Add both prorated total household resources

• You filed as married, filing separately, and you and your

together to determine the total for the time they lived

together.

spouse maintained separate homesteads all year. Complete

only Part 3 of Form 5049.

$15,014 + $18,767 = $33,781

• You filed as married, filing separately, and you shared a

Step 3: Divide each individual’s prorated share of total

homestead with your spouse all year.

household resources by the total from Step 2 to determine the

• You filed as married, filing separately, and you and your

percentage attributable to each.

spouse maintained separate homesteads at the end of the year.

Cathy $15,014/$33,781 = 44%

Karl

$18,767/$33,781 = 56%

Instructions For Form Mi-1040cr - Homestead Property Tax Credit - 2013 Page 4

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