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

January 2014 will show your total DHS payments. Your

MI-1040CR TABLE 2:

statement(s) may include the following: Family Independence

Program (FIP) assistance, State Disability Assistance (SDA),

PERCENT OF TAXES NOT REFUNDABLE

Refugee Assistance, Repatriate Assistance, and vendor

ALL GENERAL CLAIMANTS

payments for shelter, heat, and utilities.

Income

% of Income

NOTE: If you received a 2013 FEN-851 (attach a copy),

$0 - $50,000 ..................................... 3.5%

subtract the amount of child support payments entered on

OTHER CLAIMANTS *

line 22 from the total DHS payments and enter the difference

Income

% of Income

here.

$3,000 or less ................................... 0%

Line 30: Enter total adjustments from your U.S. Form 1040

$3,001 - $4,000 ................................ 1%

or U.S. Form 1040A. Describe adjustments to income. These

$4,001 - $5,000 ................................ 2%

adjustments reduce total household resources and include

$5,001 - $6,000 ................................ 3%

some of the following:

• Payments to IRAs, SEP, SIMPLE, or qualified plans

More than $6,000 ............................. 3.5%

• Student loan interest deduction

*Other claimants are senior citizens or people

• Moving expenses into or within Michigan can be

who are paraplegic, hemiplegic, quadriplegic,

included in “Other Adjustments” to reduce total household

deaf, or totally and permanently disabled or

resources. Moving expenses when moving out of

unremarried spouse of an individual 65 or older.

Michigan cannot be included in “Other Adjustments” to

reduce total household resources

• Deduction for self-employment tax

PART 1: Allowable Computation Based on

• Self-employed health insurance deduction

Claimant Status

• Penalty on early withdrawal of savings

Complete only Section A, B, or C, whichever applies to you.

• Alimony paid

Senior claimants who checked box 5a complete Section A.

• Jury duty pay you gave to your employer

Disabled claimants who checked box 5b complete Section B.

• Archer Medical Savings Account (MSA) deduction

All other claimants complete Section C.

• Any other adjustments to gross income included on your

Line 37: Enter the percentage from MI-1040CR Table A

2013 U.S. Form 1040

that applies to your total household resources from line

• Health Savings Account (HSA) deduction.

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

calculate annualized total household resources to determine

Line 31: Enter

health

insurance

premiums,

Health

the reduction percentage using MI-1040CR Table A.

Maintenance Organization (HMO) premiums, or other

insurance premiums you paid for yourself and your family.

MI-1040CR TABLE A:

Include the following premiums:

SENIOR CREDIT REDUCTION

• Medical insurance

Total Household Resources

Percentage

• Dental insurance

$21,000 or less ........................... 100% (1.00)

• Vision insurance

$21,001 - $22,000 ........................ 96% (0.96)

• Prescription drug plan

$22,001 - $23,000 ........................ 92% (0.92)

• Automobile insurance (medical care portion only).

$23,001 - $24,000 ........................ 88% (0.88)

$24,001 - $25,000 ........................ 84% (0.84)

Do not include any insurance premiums deducted on lines 21

$25,001 - $26,000 ........................ 80% (0.80)

$26,001 - $27,000 ....................... 76% (0.76)

or 30, amounts paid for income protection insurance (long-

$27,001 - $28,000 ....................... 72% (0.72)

term disability), long-term care insurance, or amounts paid

$28,001 - $29,000 ........................ 68% (0.68)

by an employer with pre-tax payroll contributions.

$29,001 - $30,000 ........................ 64% (0.64)

Property Tax Credit

$30,001 - $50,000 ........................ 60% (0.60)

Line 34: Multiply line 33 by 3.5 percent (0.035) or

the percentage from MI-1040CR Table 2. This is the

Line 42: If you are a senior claimant enter the amount from

amount that will not be refunded. The personal

line 38. If you are a disabled claimant enter the amount

representative

claiming

credit

for

deceased

from line 39. All others enter the amount from line 41. If

taxpayer with total household resources of $6,000 or

you received FIP assistance or other DHS benefits in 2013,

less must annualize the decedent’s income and use

prorate your credit to reflect the ratio of income from other

the annualized figure to determine the nonrefundable

sources to total household resources. To prorate your credit

percentage from Table 2. Then use the actual total

use the information from your form to complete MI-1040CR

household

resources

compute

the

credit.

See

Worksheet 3 on page 30.

“Annualizing Total Household Resources” on page 26.

Line 43: The computed credit is reduced by 10 percent for

every $1,000 (or part of $1,000) that your total household

resources exceed $41,000. Enter the percentage from

MI-1040CR Table B that applies to your total household

resources from line 33.

Instructions For Form Mi-1040cr - Homestead Property Tax Credit - 2013 Page 7

Related Articles

Related forms

Related Categories