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Filing a Joint Return and Maintaining Separate

more information or to help you calculate a prorated share

of taxes, see Michigan Homestead Property Tax Credit for

Homesteads

Separated or Divorced Taxpayers (Form 2105).

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

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

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

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

combined income of both you and your spouse for the entire

Cathy continued to live in the home, and Karl moved to an

year.

apartment on October 2 and paid $350 per month rent for

Worksheet for Married, Filing Separately and

the rest of the year. Cathy earned $20,000 and Karl earned

Divorced or Separated Claimants (Form 5049)

$25,000. They lived together for 274 days.

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

Step 1: Calculate the prorated total household resources for

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

each spouse for the 274 days they lived together.

Divide each spouse’s total income by 365 days, then

• You and your spouse are married filing separately and

multiply that figure by 274.

maintained separate homesteads all year

• You and your spouse are married filing separately and

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

shared a homestead all year

Karl

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

• You and your spouse married during 2013, are married

Step 2: Add both prorated total household resources

filing separately and maintained separate homesteads for

together to determine the total income for the time they

part of the year

lived together.

• You and your spouse separated or divorced in 2013 and

maintained separate homesteads for part of the year.

$15,027 + $18,767 = $33,781

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

Filing Separate State Returns and Maintaining

household resources by the total income from Step 2 to

Separate Homesteads

determine the percentage attributable to each.

Spouses who file separate Michigan income tax returns and

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

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

Karl

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

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

and individual total household resources for each person.

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

This only applies to homes located in Michigan. They each

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

must complete Form 5049 and provide an explanation in

multiply by 274 days.

Part 3.

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

Married, Filing Separately and Shared a

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

Homestead

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

Spouses who file separate Michigan income tax returns but

Step 3.

shared a homestead for the entire year are entitled to one

Cathy $1,396 x 44% = $614

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

Karl

$1,396 x 56% = $782

total household resources of both spouses during the time

the homestead was shared. A spouse claiming the credit

Enter these amounts on line 39, column A, of MI-1040CR-2.

must complete Form 5049 and include the total household

Then complete lines 40 through 43.

resources for both spouses. A spouse filing the credit

Cathy uses lines 36 through 43, column B, to determine her

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

share of taxes for the remaining 91 days. Karl uses lines 45

Nontaxable Income line of the Homestead Property Tax

through 55 to determine his share of rent. Each completes

Credit Claim. You and your spouse may choose how you

the remaining lines of the MI-1040CR-2 according to the

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

form instructions.

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

Single Adults Sharing a Home

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

portion of the credit on your MI-1040CR-2, line 44.

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

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

Separated or Divorced in 2013

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

Figure your credit based on the taxes you paid together before

based on his or her total household resources and prorated

your separation plus taxes you paid individually after your

share of taxes or rent paid.

separation. Attach a schedule showing your computation. For

Line-by-Line Instructions for MI-1040CR-2

Line 5: Filing Status. Check the box to identify your

Lines not listed are explained on the form.

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

Lines 1, 2, and 3: Enter your

name(s),

address,

and

a joint property tax credit. Married couples who file married

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

filing separate must include the total household resources of

claims, enter both Social Security numbers but do not enter

both spouses unless you filed separate federal returns and

your spouse’s name.

maintained separate homesteads. If you filed your federal

Form Mi-1040cr2 - Michigan Homestead Property Tax Credit Claim For Veterans And Blind People Instructions - 2013 Page 6

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