Common questions about the Michigan homestead property tax credit in ProConnect Tax

Below, you'll find answers to frequently asked questions about the Michigan homestead property tax credit:

How do you generate the Michigan property tax credit on Form MI-1040CR?

You can generate the MI-1040CR by:

1. Go to Input Return ⮕ Deductions ⮕ Itemized Deductions (Sch A)
2. Select Taxes to jump to that section.
3. Scroll down to the Real Estate Taxes subsection.
4. Enter the amount of taxes paid in Principal residence [Adjust].
5. On the left-side menu, select State & Local.
6. Click on MI Homestead Credits (CR, CR-2).
7. Enter the Taxable value of homestead.

In addition, there's also an override available. To use the override:

1. Go to Input Return ⮕ State & Local ⮕ Other Credits.
2. Select Michigan Homestead Credits (CR, CR-2).
3. Under the Michigan Homestead Property Tax Credit section in the field labeled 2023 property taxes levied [O], enter the override amount.

This will override the real estate taxes you've entered on Screen 25.

If the form doesn't generate, it may be due to an income limitation. According to the Property Tax Credit MI-1040CR Instructions, you may not claim a property tax credit if:

• Your total household resources are over $67,300
• Your taxable value exceeds $154,000 (excluding vacant farmland classified as agricultural)

Note: These are the values for Tax Year 2023, and can vary by year.