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Step 3: Divide

each

individual’s

Enter these amounts on line 36,

include income from both spouses in

prorated share of income by the total

column A, of your MI-1040CR-2.

household income. Divide the credit

income from Step 2 to determine the

Then complete lines 37 through 40.

as you wish. If each spouse claims

percentage of income attributable to

a portion of the credit, attach a copy

Susan uses lines 33 through 40,

each.

of the claim showing each spouse’s

column B, to determine her share of

share of the credit to each income

taxes for the remaining 91 days. Bob

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

tax return. Enter your portion of the

uses lines 42 through 52 to determine

Bob

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

credit on line 24 of MI-1040.

his share of rent. Each completes the

Step 4: Calculate the prorated taxes

remaining lines of the MI-1040CR-2

Single Adults Sharing a Home

eligible for credit for the time they

or MI-1040CR according to the form

When two or more single adults share

lived together. Divide the $1,860 by

instructions.

365 days, then multiply by 274 days.

a home, each may file a credit claim

Married, Filing Separately

if each has contracted to pay rent or

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

owns a share of the home. Each adult

Spouses who file separate Michigan

Step 5: Calculate each individual’s

should file an individual claim based

income tax returns and share a

share of the prorated taxes. Multiply

on his or her household income and

household are entitled to only one

the

$1,396

the

percentages

prorated share of taxes or rent paid.

property tax credit.

Complete the

determined in Step 3.

property tax credit claim jointly and

Susan $1,396 x 44% = $614

Bob

$1,396 x 56% = $782

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

Lines not listed are explained on the

Line 15: Enter all annuity, retirement

you do not know your taxable value,

form.

ask your local treasurer.

Farmers

pension, and IRA benefits and the

should include the taxable value on all

name of the payer. This should be the

Li nes 1, 2 , and 3: Enter you r

land that qualifies for this credit.

taxable amount shown on your U.S.

name(s), address, and Social Security

Form 1099-R. If no taxable amount is

If you rent your homestead, you must

number(s). If you are married filing

shown on your U.S. Form 1099-R, use

complete Part 2 to determine the

separate claims, enter both Social

the amount required to be included

taxable value of your homestead. You

Security numbers but do not enter

in AGI.

Enter zero if all of your

will need to know the total millage

your spouse’s name.

distribution is from your contributions

rate levied by your city or township. If

Line 4: See pages 15 and 16.

made with income previously included

you do not know the rate, contact your

AGI.

Include

reimbursement

local treasurer.

Line 5: If you and your spouse had

payments such as an increase in a

a different residency status, check the

Line 9: Read “Property Taxes That

pension to pay for Medicare charges.

box that applies to each spouse in 2011.

Can Be Claimed for Credit” on page 4

Also include the total amount of any

before you complete this line.

Line 6: Enter the percent of disability

lump

sum

distribution

including

determined

the

Veteran

amounts reported on your U.S. Form

Line 10: Divide your taxable value

Administration.

4972. Do not include recoveries of

allowance by the taxable value of your

after-tax contributions or amounts

home to determine your percentage of

Property Tax and

rolled over into another plan (amounts

tax relief (can not exceed 100%). See

Household Income

rolled over into a Roth IRA must be

example on page 10.

If you bought or sold your home or if

included to the extent included in

Line 12: Enter

all

compensation

you are a part-year resident, go to line

AGI).

received as an employee. Include strike

31 of MI-1040CR-2. Renters, go to

You must include any part of a

pay,

supplemental

unemployment

line 42 of MI-1040CR-2.

distribution from a Roth IRA that

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

exceeds your total contributions to the

Include all taxable and nontaxable

term disability benefits, including

income you and your spouse received

Roth IRA regardless of whether this

income protection insurance and any

in 2011. If your family lived in

amount is included in AGI. Assume

other amounts reported to you on

Michigan and one spouse earned

that all contributions to the Roth IRA

Form W-2.

wages outside Michigan, include the

are withdrawn first.

Note: Losses

Line 14: Enter the total of the amounts

income earned out-of-state in your

from Roth IRAs cannot be deducted.

from your U.S. Schedule C (business

household income. (See “Who May

Line 16: Enter the amount from U.S.

income or loss), U.S. Form 4797

Claim a Property Tax Credit” on page

Schedule F (farm income or loss).

(other gain or loss), and U.S. Schedule

3 and “Household Income” on page 4.)

Attach Schedule F.

E (rents, royalties, partnerships, S

Line 8: If you own your homestead,

corporations, estates, and trusts).

Line 17: Enter

net

capital

gains

enter the taxable value of your

Include amounts from sources outside

and losses. This is the total of short-

homestead from your 2011 property

Michigan. Attach these schedules to

and long-term gains, less short- and

tax statement or assessment notice. If

your claim.

Instructions For Form Mi-1040cr-2 - Michigan Homestead Property Tax Credit Claim For Veterans And Blind People Page 7

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