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long-term losses from your U.S.

pension benefits from the Veterans

long-term care insurance, or amounts

Schedule 1040D, line 16 (for gains)

Administration

and

workers’

paid by an employer with pre-tax

or line 21 (for losses--cannot exceed

compensation benefits.

Veterans

payroll contributions.

$3,000). Include gains realized on the

receiving retirement benefits should

Line 29: Household

Income

sale of your residence regardless of

enter the benefits on line 15.

used only to compute your credit.

your age or whether or not these gains

Line 24: Enter the total payments

Taxpayers with household income over

are exempt from federal income tax.

made to your household by the

$82,650 are not eligible for a credit in

Line 18: Enter alimony received and

DHS and all other public assistance

any category.

other taxable income. Describe other

payments. Your 2011 Client Annual

Credit Proration for

Statement (DHS-1241) mailed by DHS

taxable income. This includes:

FIP/DHS Benefit Recipients

in January 2012 will show your total

• Awards, prizes, lottery, bingo, and

DHS payments.

Your statement(s)

If you received FIP assistance or

other gambling winnings over $300.

may include the following: FIP

other DHS benefits in 2011, prorate

• Farmland Preservation Tax Credits

assistance, State Disability Assistance

your credit to reflect the ratio of

if not included in net farm income on

(SDA), Refugee Assistance, Repatriate

income from other sources to your

line 16.

Assistance, and vendor payments for

total household income.

Do not

• Forgiveness of debt to the extent

shelter, heat, and utilities. Note: If

include amounts paid directly to

included in federal AGI (e.g., mortgage

you received a 2011 FEN-851, subtract

the landowner on your behalf by a

foreclosure).

the amount of child support payments

government agency. To prorate your

Line 19: Enter your Social Security,

entered on line 20 from the total DHS

credit, complete your MI-1040CR-2,

Supplemental Security Income (SSI),

payments and enter the difference

lines 1 through 29 first, then use the

and/or Railroad Retirement benefits.

here.

information from your MI-1040CR-2

Include death benefits and amounts

to complete the worksheet below.

Line 26: Enter

total

adjustments

received for minor children or other

from your U.S. Form 1040, line 36, or

FIP/DHS Benefits Worksheet

dependent adults who live with you.

U.S. Form 1040A, line 20. Describe

Report the amount actually received.

A. Amount from line 24

the individual adjustments to income

Medicare premiums reported on your

(FIP and other DHS benefits) _______

taken on the federal forms.

Social Security or Railroad Retirement

B. Amount from line 29

statement should be deducted.

Moving expenses into or within

(Household Income) ............ _______

Michigan can be included in Other

Line 20: Enter child support and

C. Subtract line A from line B (if

adjustments

(MI-1040CR-2,

line

all care payments received as a

amount is negative, enter zero) _____

26) to reduce household income.

foster parent. Note: If you received

D. Divide line C by line B

Moving expenses when moving out of

a 2011 Custodial Party End of Year

and enter percentage here .... _______

Michigan cannot be included in Other

Statement (FEN-851) showing child

E. Amount from line 11

adjustments

reduce

household

support payments paid to the Friend

(maximum $1,200) .............. _______

income.

of the Court, enter the child support

F. Multiply line E by line D.

portion here and attach a copy of the

Also enter the amount of a net

Enter here and carry amount

statement. Also see line 24.

operating

loss

(NOL)

deduction.

to MI-1040CR-2, line 30 .......... _______

Note: A deduction for a carryback

Line 21: Enter

all

unemployment

Your Credit

or carryforward of an NOL cannot

compensation received in 2011.

exceed

federal

modified

taxable

Line 30: Enter the amount below that

Line 22: Enter

other

nontaxable

income. Attach a copy of your

applies to you (maximum $1,200).

income. This includes:

MI-1045 (or U.S. Form 1045 if you did

• FIP and DHS recipients, enter

• The value over $300 in gifts of

not file an MI-1045).

amount from the worksheet above.

cash, merchandise, or expenses paid

Line 27: Enter

health

insurance

• Taxpayers who have household

on your behalf (rent, taxes, utilities,

premiums,

Health

Maintenance

income over $82,650 are not eligible

food, medical care, etc.) from parents,

Organization (HMO) premiums, or

for a credit in any category.

The

relatives, or friends

other insurance premiums paid for

computed credit (line 11) is reduced by

• Forgiveness

debt,

even

yourself and your family. Include

10 percent for every $1,000 (or part of

excluded from AGI (e.g., mortgage

the following: medical insurance

$1,000) that your household income

foreclosure)

premiums, dental insurance premiums,

exceeds $73,650. If you are filing a

• Scholarship, stipend, grant, or GI

vision

insurance

premiums,

part-year return (for a deceased

bill benefits and payments made

prescription drug plan premiums,

taxpayer or a part-year resident), you

directly to an educational institution.

and automobile insurance premiums

must annualize the household income

For

information,

see

the

(medical care portion only).

to determine if the credit reduction

Household Income instructions on

applies. If the annualized income is

not

include

any

insurance

page 4.

more than $73,650, enter annualized

premiums deducted on line 26,

income on line 29 of MI-1040CR-2. If

Line 23: Enter

service-connected

amounts paid for income protection

disability

compensation

and

the annualized household income is

insurance

(long

term

disability);

Instructions For Form Mi-1040cr-2 - Michigan Homestead Property Tax Credit Claim For Veterans And Blind People Page 8

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