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

Line 10: Read “Property Taxes That Can Be Claimed for

Assume that all contributions to the Roth IRA are withdrawn

Credit” on page 24 before you complete this line.

first. NOTE: Losses from Roth IRAs cannot be deducted.

Line 19: Enter net capital gains and losses. This is the total

Line 11: Read “Rent That Can Be Claimed for Credit” on

of short-term and long-term gains, less short-term and long-

page 25 before you complete this line.

term losses from your U.S. Schedule D (losses cannot exceed

Total Household Resources

$3,000 if single or married filing jointly, or $1,500 if married

Include all taxable and nontaxable income you and your

filing separately). Include gains realized on the sale of your

spouse received in 2013. If your family lived in Michigan

residence whether or not these gains are exempt from federal

and one spouse earned wages outside Michigan, include

income tax.

the income earned both in and out-of-state in your total

Line 20: Enter alimony received and other taxable income.

household resources. (See “Total Household Resources,”

Describe other taxable income. This includes: awards,

page 23.)

prizes, lottery, bingo, and other gambling winnings over

Line 14: Enter all compensation received as an employee.

$300; farmland preservation tax credits if not included in net

Include strike pay, supplemental unemployment benefits

farm income on line 16; and forgiveness of debt to the extent

(SUB pay), sick pay, or long-term disability benefits,

included in federal AGI (e.g., mortgage foreclosure).

including income protection insurance, and any other

Line 21: Enter your Social Security, Supplemental Security

amounts reported to you on Form W-2.

Income (SSI), and/or Railroad Retirement benefits. Include

Line 15: Do not include business dividend and interest

death benefits and amounts received for minor children or

income reported as a distributive share on Form K-1. See

other dependent adults who live with you. Report the amount

line 16 instructions.

actually received for the year. Medicare premiums reported on

your Social Security or Railroad Retirement statement should

Line 16: Add the amounts from:

be deducted.

• U.S. Schedule C (Profit or Loss from Business).

Line 22: Enter child support and all payments received as a

• Part II (Ordinary Gains and Losses) of the U.S. Form 4797.

foster parent. NOTE: If you received a 2013 Custodial Party

• Part II (Income or Loss from Partnerships and

End of Year Statement (FEN-851) showing child support

S Corporations) and Part III (Income or Loss from Estates

payments paid to the Friend of the Court, enter the child

and Trusts) of the U.S. Schedule E.

support portion here and attach a copy of the statement. See

• U.S. Schedule F (Profit or Loss from Farming).

line 27 instructions.

• Include income items reported as a distributive share.

Line 23: Enter all unemployment compensation received

during 2013.

If the total is negative enter “0.” Include amounts from

Line 24: Enter the value over $300 in gifts of cash or

sources outside Michigan. Attach the above federal

merchandise received, or expenses paid on your behalf (rent,

schedules to your claim.

taxes, utilities, food, medical care, etc.) by parents, relatives,

Line 17: Add the amounts from:

or friends.

Do not include government payments made

• Part I (Income or Loss from Rental Real Estate and

directly to third parties such as an educational institution or

Royalties) of the U.S. Schedule E.

subsidized housing project.

• Part IV (Income or Loss from Real Estate Mortgage

Line 25: Enter other nontaxable income. This includes:

Investment Conduits (REMIC)) of the U.S. Schedule E

• Scholarship, stipend, grant, or GI bill benefits and

(rents, royalties).

payments made directly to an educational institution

• Part V (Summary) (Net farm rental income or (loss)) of

• Compensation for damages to character or for personal

the U.S. Schedule E.

injury or sickness

• Adoption subsidies

If the total is negative enter “0.” Include amounts from

• An inheritance (except an inheritance from your spouse)

sources outside Michigan. Attach the above federal

• Proceeds of a life insurance policy paid on the death of the

schedules to your claim.

insured (except benefits from a policy on your spouse)

Line 18: Enter all annuity,

retirement

pension,

and

• Death benefits paid by or on behalf of an employer

• Minister’s housing allowance

individual

retirement

account

(IRA)

benefits.

This

• Forgiveness of debt to the extent not included in federal AGI

should be the taxable amount shown on your U.S. Form

1099-R. If no taxable amount is shown on your U.S. Form

(e.g., mortgage foreclosure)

1099-R, use the amount required to be included in

• Reimbursement from dependent care and/or medical care

AGI. Enter “0” if all of your distribution is from your

spending accounts

contributions made with income previously included in

• If you are married, filing separately, include your spouse’s

AGI. Include reimbursement payments such as an increase

income unless you maintained separate homesteads

in a pension to pay for Medicare charges. Also include

during the year. Complete and attach Form 5049.

the total amount of any lump sum distribution including

amounts reported on your U.S. Form 4972. Do not include

Line 26: Enter workers’ compensation, service-connected

disability compensation and pension benefits from the Veterans

recoveries of after-tax contributions or amounts rolled

Administration. Veterans receiving retirement benefits should

over into another plan (amounts rolled over into a Roth

enter the benefits on line 18.

IRA must be included to the extent included in AGI).

You must include any part of a distribution from a Roth

Line 27: Enter the total payments made to your household

IRA that exceeds your total contributions to the Roth

by DHS and all other public assistance

payments. Your

IRA regardless of whether this amount is included in AGI.

2013 Client Annual Statement (DHS-1241) mailed by DHS in

Instructions For Form Mi-1040cr - Homestead Property Tax Credit - 2013 Page 6

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