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

Step 4: Calculate the prorated taxes eligible for credit for the

your share is or, to determine it yourself, divide the amount

time they lived together. Divide the $1,860 by 365 days, then

of property tax levied on the facility in 2013 by the number

multiply by 274 days.

of residents for which the facility is licensed. This is your

share. If both you and your spouse live in the facility, add

($1,860/365) x 274 = $1,396

your shares together. If you lived in the facility only part of

Step 5: Calculate each individual’s share of the prorated

the year, multiply this amount by the portion of the year you

taxes. Multiply the $1,396 by the percentages determined in

lived at the facility.

Step 3.

Exception: Credit is not allowed if your care facility charges

Cathy $1,396 x 44% = $614

are paid directly to the facility by a government agency.

Karl $1,396 x 56% = $782

If you maintain a homestead and your spouse lives in an

Enter these amounts on MI-1040CR, line 50, column A.

adult care home, you may file a joint credit claim. Combine

Cathy uses lines 47 through 50, column B, to compute her

the tax for your homestead and your spouse’s share of the

share of taxes for the remaining 91 days.

facility’s property tax to compute your claim.

Karl uses lines 52 and 53 to compute his share of rent. Each

If you are single and maintain a homestead (that is not

completes the remaining lines of MI-1040CR according to

rented) while living in an adult care home, you may claim

the form instructions.

either your homestead or your share of the facility’s property

tax, but not both. Use the one that gives you the larger credit.

Residents of Nursing Homes and Other Adult

Care Homes

Single Adults Sharing a Home

If you are a resident of a nursing home, adult foster care

When two or more single adults share a home, each may file

home, or home for the aged, that facility is considered your

a credit claim if each has contracted to pay rent or owns a

homestead. If the facility pays local property taxes (many

share of the home. Each adult should file an individual claim

do not), you may claim your portion of those taxes for credit.

based on his or her total household resources and prorated

You may not claim rent. Ask the facility manager what

share of taxes or rent paid.

Line-by-Line Instructions for Homestead Property Tax Credit (MI-1040CR)

each individual using the single filing status. Michigan has

Lines not listed are explained on the form.

defined marriage in the Michigan Constitution as a union of

Lines 1, 2, and 3: Enter your name(s), address, and

one man and one woman. Each individual who has income

Social Security number(s). If you are married, filing separate

attributable to Michigan and who has filed a joint return

claims, enter both Social Security numbers, but do not enter

with the IRS as a same-sex couple should separately report

your spouse’s name.

adjusted gross income (AGI) for Michigan income tax as a

Line 5: Check the box that applies to you or your spouse as

single filer. Each individual should recalculate their federal

of December 31, 2013, if any. If both boxes apply, only check

adjusted gross income as if they had filed a single federal

box 5b, unless you are claiming the Senior Alternate Credit,

return, and be aware that filing as single may affect the

then you should check box 5a.

filer’s eligibility for Michigan tax credits as well. Additional

Line 5a: Age 65 or older. This includes the unremarried

information can be found on Treasury’s Web site.

surviving spouse of a person who was 65 or older at the time

Line 7: Residency. Check the box that describes your

of death. You are considered 65 the day before your 65th

Michigan residency for 2013. If you and your spouse had

birthday.

a different residency status during the year, check a box

Line 5b: Deaf, blind, hemiplegic, paraplegic, quadriplegic,

for each of you. If you checked box C, enter the dates of

or totally and permanently disabled (as defined under Social

Michigan residency in 2013.

Security Guidelines 42 USC 416). If you are age 66 or older

Property Tax

you may not claim an exemption as totally and permanently

Line 8: Homestead Status. Check this box if the taxable

disabled. Blind means your better eye permanently has 20/200

value of your homestead includes unoccupied farmland

vision or less with corrective lenses, or your peripheral field of

classified as agricultural by your assessor.

vision is 20 degrees or less.

Line 9: If the taxable value of your homestead is greater

Line 6: Filing Status. Check the box to identify your

than $135,000, STOP; you are not eligible for the

filing status. If you file a joint federal return, you must file a

homestead property tax credit. If your taxable value is

joint property tax credit. Married couples who file married

less than $135,000, enter the 2013 taxable value from your

filing separate must include the total household resources of

2013 property tax statement or assessment notice. If you

both spouses unless you filed separate federal returns and

do not know your taxable value, contact your local assessor.

maintained separate homesteads. If you filed your federal

Farmers should include the taxable value of all land that

return as head of household or qualifying widow(er), file

qualifies for this credit (see instructions for farmers on

your property tax credit as single.

page 24). Farmers should note that the $135,000 limit on

Same-Sex Couples Filing a Joint Federal Return.

taxable value does not apply to the taxable value of their

Same-sex couples who file a joint federal income tax return

homestead attributable to unoccupied farmland classified

as agricultural.

must continue to file income tax returns for Michigan with

Instructions For Form Mi-1040cr - Homestead Property Tax Credit - 2013 Page 5

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