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MI Nonresident and Part Year Resident

Tax Year 2013

 

This worksheet is used to file the taxpayer's state tax return as a part-year resident or nonresident of Michigan.

 

Who Must File
A part-year resident or nonresident of Michigan must file a state tax return if he or she owes Michigan tax, is due a refund of Michigan tax, or if his or her Michigan AGI exceeds the exemption allowance.

 

The taxpayer does not need to file a return if someone else can claim the taxpayer as a dependent, and the taxpayer's AGI is $1,500 or less if single or married filing separately, or $3,000 or less if married filing jointly. However, the taxpayer should still file a return if he or she is entitled to a refund for withheld taxes.

 

See the 2013 Michigan MI-1040 Individual Income Tax Forms and Instructions and the 2013 Nonresident and Part Year Resident Schedule for more information and details.

Residency Information Residency Status
Select the taxpayer's residency status from the dropdown list, either "Nonresident" or "Part-Year Resident".

 

Dates of Residency
Enter the dates that the taxpayer and/or spouse was a resident of the state of Michigan if the taxpayer was a part-year resident.

County Select the county in which the taxpayer resided as a part-year resident from the dropdown list.

 

If the taxpayer was a nonresident, select "Nonresident" from this list. 

School District Select the school district in which the taxpayer resided as a part-year resident from the dropdown list.

 

If the taxpayer was a nonresident, select "Nonresident" from this list.

Line 5
State Campaign Fund
Choose "Yes" or "No" for the taxpayer and spouse, if married, as to whether he or she wants $3 of taxes to go to this fund.

 

These funds are disbursed only to candidates for governor regardless of political party who agree to limit campaign spending and meet the campaign fund requirements. Choosing “Yes” or "No" will not raise the taxpayer's tax or reduce the taxpayer's refund.

Line 6 Check this box only if the taxpayer is a farmer, fisherman, or seafarer and at least 2/3 of the taxpayer's income is from farming, fishing, or seafaring.
Line 9 Exemptions (Special Only)
Enter the number of individuals who qualify for a special exemption as a disabled veteran.
Miscellaneous Contributions and Payments - MI-1040
Line 23 Use Tax Due
Enter the taxpayer's actual use tax or the tax calculated by using the table below.

 

Use Tax Explained
The use tax is a 6 percent tax owed on purchases made outside of Michigan if the seller from whom the purchase was made does not collect and report sales tax to the state of Michigan.

 

Use tax is due on mail order and Internet purchases from out-of-state sellers as well as purchases made while traveling in foreign countries when those items are brought back into Michigan to be used. Shipping and handling charges are also subjected to use tax.

 

The taxpayer does not have to pay Michigan use tax if one of the following applies:

  • Michigan sales or use tax was paid to the seller who reports and pays that tax to the state of Michigan,
  • The seller charged another state's sales tax (including local sales taxes) of at least 6 percent on the purchase, or
  • The total of purchases made outside the state of Michigan did not exceed $10 in a calendar month. If total purchases for the month exceed $10, then all purchases are subject to tax.

The taxpayer can use either the total cost of out of state purchase(s) multiplied by 6% (.06), or enter the amount from the Use Tax Table below based on the taxpayer's AGI.

 

AGI $

Tax $

0-10,000 

 4

10,001-20,000

 12

20,001-30,000

 20

30,001-40,000

 28

40,001-50,000

 36

50,001-75,000

 50

75,001-100,000  

 70

Above 100,000 Multiply the AGI
by 0.08% (.0008)
Line 29 Additional Michigan Tax Withheld
Enter the total amount of Michigan state income tax withheld that is not entered elsewhere on the federal or state return.

 

Do not include amounts reported on the taxpayer's W-2(s) and 1099-R(s) and 1099-G(s) which have already been entered into the return.

 

Do not include any amounts withheld by another state.

Line 30 Estimated Tax, Extension Payments, and Credit Forward
Enter the total of estimated Michigan tax payments made, payments with a request for an extension, and any credit from the previous year that the taxpayer selected to forward to the current tax year.

 

Do not enter any payments made to the federal government, to other states, or to local Michigan entities.

Voluntary Contributions - Form 4642
These contributions will increase the tax due or reduce the taxpayer's refund.
Funds Check the $5 or $10 box to contribute the corresponding amount, or enter a higher amount in the box labeled "Other" for one or more of the funds listed, from the taxpayer's refund.
Schedule NR - Nonresident and Part-Year Resident Schedule
Nonresidents and part-year residents must pay income tax on all income earned in Michigan or attributable to Michigan.

 

General Directions
Enter the amount of income earned in or attributable to Michigan.

Line 6 Interest and Dividends
Enter nonbusiness interest and dividends earned while the taxpayer was a resident of the State of Michigan.
Line 8 Gains/Losses from Schedule D
Enter the allocated portion of gain or loss from the State of Michigan, or enter all gains and losses from Schedule D.

 

Allocated Portion
The taxpayer must use Form MI 1040D or MI 4797 to allocate gains and losses for Michigan.

Line 9 Rents, Royalties, Partnerships, Etc.
Enter the allocated portion of income from U.S. Schedule E

 

Allocated Portion
The taxpayer must allocate all income earned from real and personal property located in Michigan to Michigan.

 

If the business activity was located in Michigan, the income is allocated to Michigan even if the business is not registered in Michigan.

 

The taxpayer must use Form Mi-1040H to allocate income reported on Schedule E to Michigan if the income was earned in both Michigan and another state.

Line 11 Other Income
Enter all other income subject to Michigan income tax that is not already reported on the return.
Line 13 Total Federal Adjustments
Enter the taxpayer's total federal adjustments that are attributable to Michigan.
Subtractions from Income - Schedule 1
Line 11 Military Pay from U.S. Armed Forces
Enter compensation received for active duty in the U.S. Armed Forces already entered as income.

 

Note: Compensation from the U.S. Public Health Service is not considered military pay.

Line 17 Michigan Education Savings Program (MESP)
Enter the total of contributions minus qualified withdrawals made to and from an MESP during the tax year, up to $5,000 for a single taxpayer and $10,000 for a married taxpayer.

 

Michigan only allows a tax deduction for contributions to accounts established through the MESP, and does not allow a deduction for contributions made to any other type of program.

Line 18 Michigan Education Trust (MET)
Enter the taxpayer's allowable deduction for an MET.

 

The following amounts are deductible in regards to an MET:

  • The taxpayer may deduct the total contract price, including the processing fee, if he or she purchased a MET contract during the tax year.
  • The taxpayer may deduct the amount paid on a MET contract during the tax year, not including fees for late payments or insufficient funds, if he or she purchased a MET payroll deduction or monthly purchase contract. The taxpayer should receive an annual statement from MET specifying the amount.
  • The amount included in the taxpayer's AGI as income because a MET contract was terminated.
Homestead Property Tax Credit - Form MI-1040CR

 

Who May Claim a Property Tax Credit
The taxpayer may claim a property tax credit if all of the following apply:

  • The taxpayer's homestead is located in Michigan,
  • The taxpayer was a Michigan resident at least six months of the tax year, and
  • The taxpayer paid property taxes or rent on the taxpayer's Michigan homestead.

 

What is a Homestead?
The taxpayer can have only one homestead at a time, and the taxpayer must be the occupant as well as the owner or renter. The taxpayer's homestead can be a rented apartment or a mobile home on a lot in a mobile home park.

 

A vacation home or income property is not considered the taxpayer's homestead.

 

Where is a Homestead?
The taxpayer's homestead is in the taxpayer's state of domicile. The domicile is the place where the taxpayer has the taxpayer's permanent home. It is the place the taxpayer plans to return to whenever the taxpayer goes away. Even if the taxpayer spends the winter in a southern state, the taxpayer's domicile is still Michigan. College students and others whose permanent homes are not in Michigan are not Michigan residents. Domicile continues until the taxpayer establishes a new permanent home.

 

Property tax credit claims may not be submitted on behalf of minor children.

 

Household Income Limitations and Calculation
The taxpayer may not claim a property tax credit if the taxpayer's household resources are over $50,000 or if the taxpayer's taxable value exceeds $135,000 (excluding vacant farmland classified as agricultural). The computed credit is reduced by 10 percent for every $1,000 (or part of $1,000) that household resources exceeds $41,000. The amount of available credit will be automatically calculated.

 

Household resources is the total income (taxable and nontaxable) of both spouses or a single person maintaining a household. It is calculated by adding to the taxpayer's AGI all income exempt or excluded from AGI, plus any gains realized on the sale of the taxpayer's residence regardless of whether they are exempt from federal income tax.

 

Household resources does not include any of the following:

  • Net operation loss deductions taken on the federal return
  • Payment received under the foster grandparent or the senior companion program
  • Energy assistance grants
  • Government payments to a third party, like a doctor, unless the payment is made from money withheld from the taxpayer's benefit (Example: the FIA may pay the taxpayer's rent directly to the landowner)
  • Money received from a government unit to repair or improve the taxpayer's homestead
  • Surplus food or food assistance program benefits
  • State and local income tax refunds and homestead property tax credits
  • Chore service payments which are income to the provider but not the person receiving the services
  • The first $300 of income from gambling, bingo, lottery or prizes
  • Loan proceeds
  • Inheritance or life insurance proceeds from a spouse only
  • The first $300 in gifts, cash or expenses paid on the taxpayer's behalf by a family member or friend
  • Amounts deducted from Social Security or Railroad Retirement benefits for Medicare premiums
  • Life, health and accident insurance premiums paid by the taxpayer's employer
  • Payments from a long-term care policy made to a nursing home or other care facility
Line 5 Checkbox
Check the box only if any of the following applies to the taxpayer or spouse as of the last day of the tax year:
  1. Deaf
  2. Blind
  3. Hemiplegic, paraplegic, quadriplegic, or
  4. Totally and permanently disabled
Line 9 Homeowners: Taxable Value of Homestead (Full-year Homeowners Only)
Enter the taxable value of the taxpayer's homestead property from the property tax statement if the taxpayer owned his or her home and lived in the same home for the entire tax year.

 

Contact the local property official if the taxpayer does not have a copy of the property tax statement.

 

Special Note for Farmers: Include the taxable value on all land that qualifies for this credit.

Line 10 Property Taxes Levied on Home (Full-year Homeowners Only)
Enter the total of property taxes levied on the taxpayer's homestead property if the taxpayer owned his or her home and lived in the same home for the entire tax year.

 

Include the following:

  • Ad valorem property taxes that were levied on the taxpayer's homestead for the tax year, including collection fees up to 1 percent of the taxes regardless of when the taxpayer paid them,
  • The amount of property taxes billed in from a corrected or supplemental tax bill, and
  • Special assessments only if they meet all of the following requirements:
    1. They are levied using a uniform millage rate.
    2. They are based on the taxable value of the property.
    3. They are either levied in the entire taxing jurisdiction or are used to provide police, fire, or advanced life support services and are levied township-wide.

Deduct the following from the total above:

  • Any refund of property taxes received in that was a result of a corrected tax bill from a previous year.

Do not include any of the following:

  • Delinquent property taxes (Example: previous year's property taxes paid during the current tax year),
  • Penalty and interest on late payments of property tax,
  • Delinquent water or sewer bills,
  • Property taxes on cottages or second homes,
  • Special assessments (Example: drains, sewers, roads and other improvements) that are not based on the taxable value and/or are not applied to the entire taxing jurisdiction, or
  • Association dues on the property.
Household Income
The following are nontaxable income items which must be added to the taxpayer's AGI to calculate household income.
Line 22 Child Support
Enter child support and all payments received as a foster parent.

 

Include payments shown on this year's Child Support Year-End Statement (FEN-851) paid to Friend of the Court.

Line 25 Other Nontaxable Income
Enter the description and amount of other nontaxable income, including all of the following:
  • Compensation for damages to character or for personal injury or sickness,
  • An inheritance (except an inheritance from the spouse),
  • Proceeds of a life insurance policy paid on the death of the insured (except benefits from a policy on a spouse),
  • Death benefits paid by or on behalf of an employer,
  • The value over $300 in gifts of cash, merchandise or expenses paid on the taxpayer's behalf (rent, taxes, utilities, food, medical care, etc.) from parents, relatives or friends,
  • Minister's housing allowance,
  • Amounts paid directly to the taxpayer as a scholarship, stipend, grant or GI bill benefits,
  • Reimbursement from dependent care and/or medical care spending accounts, and
  • Payments made on the taxpayer's behalf except government payments made directly to an educational institution or subsidized housing project.
Line 27 FIP and Other DHS Benefits
Enter the total payments made to the taxpayer's household by the Family Independence Agency (FIA) and all other public assistance payments.

 

The taxpayer's current tax year Client Annual Statement (DHS-1241) will show the taxpayer's total DHS payments. The statement(s) may include the following: Family Independence Program (FIP) assistance, State Disability Assistance (SDA), Refugee Assistance, Repatriate Assistance, and vendor payments for shelter, heat and utilities.

 

Note for Taxpayers Who Receive Child Support: Subtract the amount of child support payments entered on line 22 above from the Child Support Year-End Statement (FEN-851) from the total FIA payments and enter the difference here.

Line 31 Medical Insurance or HMO Premiums Paid
Enter medical insurance or HMO premiums the taxpayer paid for the taxpayer and his or her family members.

 

Include the following amounts:

  • Medical insurance premiums paid through post-tax payroll deduction, and
  • The portion of auto insurance paid for medical coverage.

 

Do not include any of the following amounts:

  • Premiums paid for Medicare,
  • Insurance premiums paid for income protection insurance, long-term care insurance, life insurance,
  • Amounts paid through pre-tax payroll deductions.
Homeowners Only
Complete this section only if the taxpayer owns his or her homestead. Skip to line 53A if the taxpayer rents his or her homestead.
Line 45 Enter the street address and zip code of the location where the taxpayer resided on December 31st of the tax year.

 

Enter the taxable value of the home at that address.

Line 46 Enter the street address and zip code of the homestead if it was sold during the tax year.

 

Enter the taxable value of the home at that address.

If the Taxpayer Bought or Sold Home in
Complete this section as it applies to the taxpayer only if the taxpayer bought or sold a home during the tax year.
Line 47 Number of Days Occupied
Enter the number of days the taxpayer lived in the new homestead property if the taxpayer bought a home during the tax year.

 

Enter the number of days the taxpayer lived in the previous homestead property if the taxpayer sold a home during the tax year.

Line 49 Property Taxes Levied in
Enter the amount of property taxes levied on the new homestead if the taxpayer bought a home during the tax year.

 

Enter the amount of property taxes levied on the previous homestead if the taxpayer sold a home during the tax year.

 

Include the following:

  • Ad valorem property taxes that were levied on the taxpayer's homestead during the tax year, including collection fees up to 1 percent of the taxes regardless of when the taxpayer paid them,
  • The amount of property taxes billed in from a corrected or supplemental tax bill, and
  • Special assessments only if they meet all of the following requirements:
    1. They are levied using a uniform millage rate.
    2. They are based on the taxable value of the property.
    3. They are either levied in the entire taxing jurisdiction or are used to provide police, fire, or advanced life support services and are levied township-wide.

Deduct the following from the total above:

  • Any refund of property taxes received in that was a result of a corrected tax bill from a previous year.

Do not include any of the following:

  • Delinquent property taxes (Example: previous year's property taxes paid during the current tax year),
  • Penalty and interest on late payments of property tax,
  • Delinquent water or sewer bills,
  • Property taxes on cottages or second homes,
  • Special assessments (Example: drains, sewers, roads and other improvements) that are not based on the taxable value and/or are not applied to the entire taxing jurisdiction, or
  • Association dues on the property.
Renters Only
Complete this section only if the taxpayer rents his or her homestead. Skip to Form 1040CR-2 if that is applicable, or to Schedule MI-ST if not, if the taxpayer owns his or her homestead.
Lines 52
A and B
First Rented Homestead
Enter the street address and zip code of the rented homestead.

 

Enter the landowner's (landlord's) name and address.

 

Select from the dropdown list how many months the taxpayer lived in this particular homestead.

 

Enter the monthly rent for this rented property. Do not include amounts paid directly to the landowner on the taxpayer's behalf by a government agency, unless payment is made with money withheld from the taxpayer's benefit.

 

Second Rented Homestead
Enter the same information as listed above if the taxpayer lived in a second rented homestead during the tax year.

Homestead Property Tax Credit Claim for Veterans and Blind People-
Form 1040CR-2
Which Worksheet to Use
If the taxpayer meets one of the requirements of line 6, he or she should enter the information in this worksheet (CR-2) and the previous worksheet (CR).

 

The largest available credit between the two worksheets will be automatically calculated and applied to the tax return.

 

Important: This form is only available to taxpayers who meet one of the conditions listed on Line 6. If the taxpayer does not meet one of these conditions, the normal Form 1040CR should be used as described above.

Line 7 Which of the Following Applies to the Taxpayer?
Select the condition applying to the taxpayer from the dropdown list as follows:
  • A-The taxpayer is blind and owns his or her homestead.
  • B-The taxpayer is a veteran with a service-connected disability.
    • The taxpayer must also enter the percentage of disability (example: 60%).
  • C-The taxpayer is a surviving spouse of a veteran deceased in service.
  • D-The taxpayer is an active military person, a pensioned veteran, or his or her surviving spouse whose household income is less than $7,500.
  • E-The taxpayer is a surviving spouse of a nondisabled or nonpensioned veteran of the Korean War, World War II, or World War I whose household income is less than $7,500.

Important Note: If the taxpayer is blind and rents his or her homestead, use Form 1040CR instead, and choose totally and permanently disabled person. The credit for this worksheet is not available.

Household Income
The following are nontaxable income items which must be added to the taxpayer's AGI to calculate household income.
Line 21 Child Support
Enter child support and all payments received as a foster parent.

 

Include payments shown on the Child Support Year-End Statement (FEN-851) paid to Friend of the Court.

Line 24 Other Nontaxable Income:
Enter the description and amount of other nontaxable income, including all of the following:
  • Compensation for damages to character or for personal injury or sickness,
  • An inheritance (except an inheritance from the spouse),
  • Proceeds of a life insurance policy paid on the death of the insured (except benefits from a policy on a spouse),
  • Death benefits paid by or on behalf of an employer,
  • The value over $300 in gifts of cash, merchandise or expenses paid on the taxpayer's behalf (rent, taxes, utilities, food, medical care, etc.) from parents, relatives or friends,
  • Minister's housing allowance,
  • Amounts paid directly to the taxpayer as a scholarship, stipend, grant or GI bill benefits,
  • Reimbursement from dependent care and/or medical care spending accounts, and
  • Payments made on the taxpayer's behalf except government payments made directly to an educational institution or subsidized housing project.
Line 26 FIP and Other DHS Benefits
Enter the total payments made to the taxpayer's household by the Family Independence Agency (FIA) and all other public assistance payments.

 

The taxpayer's current year Client Annual Statement (DHS-1241) will show the taxpayer's total DHS payments. The statement(s) may include the following: Family Independence Program (FIP) assistance, State Disability Assistance (SDA), Refugee Assistance, Repatriate Assistance, and vendor payments for shelter, heat and utilities.

 

Note for Taxpayers Who Receive Child Support: Subtract the amount of child support payments entered on line 21 above from the Child Support Year-End Statement (FEN-851) from the total FIA payments and enter the difference here.

Line 29 Medical Insurance or HMO Premiums Paid
Enter medical insurance or HMO premiums the taxpayer paid for the taxpayer and his or her family members.

 

Include the following:

  • Medical insurance premiums paid through post-tax payroll deduction, and
  • The portion of auto insurance paid for medical coverage.

Do not include any of the following amounts:

  • Premiums paid for Medicare,
  • Insurance premiums paid for income protection insurance, long-term care insurance, life insurance, or
  • Amounts paid through pre-tax payroll deductions.
Homeowners
Complete this section only if the taxpayer owns his or her homestead. Skip to line 44A if the taxpayer rents his or her homestead.
Line 9 Homeowners: Taxable Value of Homestead (Full-year Homeowners Only)
Enter the taxable value of the taxpayer's homestead property from the property tax statement if the taxpayer owned his or her home and lived in the same home for the entire tax year.

 

Contact the local property official if the taxpayer does not have a copy of the property tax statement.

 

Special Note for Farmers: Include the taxable value on all land that qualifies for this credit.

Line 10 Property Taxes Levied on Home (Full-year Homeowners Only)
Enter the total of property taxes levied on the taxpayer's homestead property if the taxpayer owned his or her home and lived in the same home for the entire tax year.

 

Include the following:

  • Ad valorem property taxes that were levied on the taxpayer's homestead during the tax year, including collection fees up to 1 percent of the taxes regardless of when the taxpayer paid them,
  • The amount of property taxes billed in from a corrected or supplemental tax bill, and
  • Special assessments only if they meet all of the following requirements:
    1. They are levied using a uniform millage rate.
    2. They are based on the taxable value of the property.
    3. They are either levied in the entire taxing jurisdiction or are used to provide police, fire, or advanced life support services and are levied township-wide.

Deduct the following from the total above:

  • Any refund of property taxes received in that was a result of a corrected tax bill from a previous year.

Do not include any of the following:

  • Delinquent property taxes (Example: previous tax year's property taxes paid during the current tax year),
  • Penalty and interest on late payments of property tax,
  • Delinquent water or sewer bills,
  • Property taxes on cottages or second homes,
  • Special assessments (Example: drains, sewers, roads and other improvements) that are not based on the taxable value and/or are not applied to the entire taxing jurisdiction, or
  • Association dues on the property.
Line 34 Enter the street address and zip code of the location where the taxpayer resided on December 31st of the tax year.
If the Taxpayer Bought or Sold Home in
Complete this section as it applies to the taxpayer only if the taxpayer bought or sold a home during the tax year.
Line 35 Enter the street address and zip code of the homestead if it was sold during the tax year.
Line 36 Number of Days Occupied
Enter the number of days the taxpayer lived in the new homestead property if the taxpayer bought a home during the tax year.

 

Enter the number of days the taxpayer lived in the previous homestead property if the taxpayer sold a home during the tax year.

Line 38 Property Taxes Levied during Tax Year
Enter the amount of property taxes levied on the new homestead if the taxpayer bought a home during the tax year.

 

Enter the amount of property taxes levied on the previous homestead if the taxpayer sold a home during the tax year.

 

Include the following:

  • Ad valorem property taxes that were levied on the taxpayer's homestead during the tax year, including collection fees up to 1 percent of the taxes regardless of when the taxpayer paid them,
  • The amount of property taxes billed in from a corrected or supplemental tax bill, and
  • Special assessments only if they meet all of the following requirements:
    1. They are levied using a uniform millage rate.
    2. They are based on the taxable value of the property.
    3. They are either levied in the entire taxing jurisdiction or are used to provide police, fire, or advanced life support services and are levied township-wide.

Deduct the following from the total above:

  • Any refund of property taxes received in that was a result of a corrected tax bill from a previous year.

Do not include any of the following:

  • Delinquent property taxes (Example: previous year's property taxes paid during the current tax year),
  • Penalty and interest on late payments of property tax,
  • Delinquent water or sewer bills,
  • Property taxes on cottages or second homes,
  • Special assessments (Example: drains, sewers, roads and other improvements) that are not based on the taxable value and/or are not applied to the entire taxing jurisdiction, or
  • Association dues on the property.
Line 41 Taxable Value of Homestead
Enter the taxable value of the taxpayer's homestead property from the property tax statement if the taxpayer owned his or her home and lived in the same home for the entire tax year.

 

Contact the local property official if the taxpayer does not have a copy of the property tax statement.

 

Special Note for Farmers: Include the taxable value on all land that qualifies for this credit.

Veterans Who Rented Home All or Part of the Year
Complete this section only if the taxpayer rents his or her homestead. Skip to Form 1040CR-7 if the taxpayer owns his or her homestead.
Full-year or Part-year Select from the dropdown list whether the taxpayer lived in a rented homestead for the full year or for only part of the year.

 

If the taxpayer lived in more than one rented homestead over the course of the year, but lived in at least one of the rented homesteads at all times during the tax year, enter "Full".

Line 45A and B First Rented Homestead
Enter the street address and zip code of the rented homestead.

 

Enter the landowner's (landlord's) name and address.

 

Select from the dropdown list how many months the taxpayer lived in this particular homestead.

 

Enter the monthly rent for this rented property. Do not include amounts paid directly to the landowner on the taxpayer's behalf by a government agency, unless payment is made with money withheld from the taxpayer's benefit.

 

Second Rented Homestead
Enter the same information as listed above if the taxpayer lived in a second rented homestead during the tax year.

Line 47 Percent of Rent that can be Claimed for Credit, if not 20%
Check the box if the taxpayer lives in housing on which service fees are paid instead of taxes, which limits the credit to 10% of rent paid instead of the higher 20% amount normally allowed.

 

Enter a different percentage if the taxpayer knows of a special circumstance that results in a different amount.

Line 48 Non-Homestead Millage Rate
Enter the non-homestead millage rate for the taxpayer's property.

 

If the taxpayer is given the information in mills, such as 55 mills, multiply the amount by .001 for a millage rate of .055. If the taxpayer is just given a decimal, such as .055, enter that amount.

 

This information should be available from the landlord or the local property official.

 

The amount of available credit will be automatically calculated.

 

Calculation
The taxable value of the rented homestead is determined by multiplying the taxpayer's rent by 20 percent and dividing the result by the non-homestead millage rate on the property.

 

Example: The taxpayer is a pensioned veteran and rents his home for $395 per month. The taxpayer's local assessor tells the taxpayer the millage rate for the taxpayer's home is 56 mills (.056 or $56 for every $1,000 of taxable value).

 

The credit is computed as follows:

$395 monthly rent x 12 = $4,740 yearly rent
$4,740 x .20 = $948 taxes attributable to rent
$948 / .056 (millage rate) = $16,929 (taxable value)
$3,500 TVA (from Table 1) / $16,929 (taxable value) = 20.67% (.2067) refundable
$948 property taxes x .2067 = $196 credit

If Rented Home for Part of the Year
Line 52 Percent of Rent that can be Claimed for Credit, if not 20%
Check the box if the taxpayer lives in housing on which services fees are paid instead of taxes, which limits the credit to 10% of rent paid instead of the higher 20% amount normally allowed.

 

Enter a different percentage if the taxpayer knows of a special circumstance that results in a different amount.

Home Heating Credit Claim
This credit is made available for low income families to help them pay their heating costs. The taxpayer's eligibility will be automatically determined whether the taxpayer is eligible for this credit, and if so, how much, based on the data entered below.
General Information-Form MI-1040CR-7
Line 4 County
Select the county of residence for this heating credit from the pull-down menu.
Line 7 Checkbox
Check the box if the taxpayer rented his or her residence, and the taxpayer's heat is included in the taxpayer's rent, or if the taxpayer's heat service is in someone else's name.
Line 8 Checkbox
Check the box if the taxpayer wants the taxpayer's name and address referred to other government assistance programs the taxpayer may qualify for.
Line 9 Checkbox
Check this box if the taxpayer or spouse received Supplemental Security Income (SSI).
Line 11 Amount Billed for Heat Between 11/1/2012 and 10/31/2013
Enter the heating costs the taxpayer was billed from November 1, 2012 to October 31, 2013 on the taxpayer's Michigan homestead property.

 

Do not make an entry on this line if the taxpayer checked box 7 or if the taxpayer was not a resident of Michigan for the full 12 months and/or was not billed for heating costs for the full 12 months.

 

Many fuel companies include the total heating cost for these 12 months on the October bill. If the taxpayer cannot find the taxpayer's bills or the information is not on the taxpayer's October bill, call the heating company and request this information.

Line 12 CARE Facility
Select the type of CARE facility the taxpayer lived in, if applicable, from the dropdown list as follows:

 

A = Nursing Home
B = Licensed Home for the Aged
C = Adult Foster Care Home
D = Substance Abuse Center

 

Do not select one of these choices if the taxpayer is married filing jointly, and his or her spouse lived in one of these facilities.

 

Do not select "Licensed Home for the Aged" if the taxpayer lives in subsidized senior citizen housing.

Line 13 Exemptions
Enter the number of persons in the taxpayer's home, including only the taxpayer, spouse, or dependents, that are deaf or a qualified disabled veteran.

 

Deaf
The person must have a primary way to receive messages that is not hearing, such as lip reading or sign language.

 

Qualified Disabled Veteran
The person must be a veteran of the active military, naval, marine, coast guard, or air service who received an honorable or general discharge and has a disability incurred or aggravated in the line of duty as described in 38 U.S.C. 101(16).

Line 15 DHS Recipients Only
Check this box if the taxpayer wants to receive a refund from his or her heat provider if the credit amount exceeds the taxpayer's heat account balance, and the taxpayer is eligible for the refund.

 

If the taxpayer does not check this box or is not eligible, the excess refund will be applied toward future bills.

 

Participating Providers
DTE Energy, Consumers Energy, and SEMCO Energy Gas participate in this program.

Household Income
The taxpayer must complete this section on this form even if the taxpayer filed a homestead property tax credit claim. Include income earned by both spouses if the taxpayer is filing a joint claim.

 

Household income is the total income (taxable and nontaxable) of both spouses or a single person maintaining a household. It is calculated by adding to the taxpayer's AGI all income exempt or excluded from AGI, plus any gains realized on the sale of the taxpayer's residence regardless of whether they are exempt from federal income tax.

 

Household income does not include any of the following:

  • Payment received under the foster grandparent or the senior companion program
  • Energy assistance grants
  • Government payments to a third party, like a doctor, unless the payment is made from money withheld from the taxpayer's benefit (Example: the FIA may pay the taxpayer's rent directly to the landowner)
  • Money received from a government unit to repair or improve the taxpayer's homestead
  • Surplus food or food assistance program benefits
  • State and local income tax refunds and homestead property tax credits
  • Chore service payments which are income to the provider but not the person receiving the services
  • The first $300 of income from gambling, bingo, lottery or prizes
  • Loan proceeds
  • Inheritance or life insurance proceeds from a spouse only
  • The first $300 in gifts, cash or expenses paid on the taxpayer's behalf by a family member or friend
  • Amounts deducted from Social Security or Railroad Retirement benefits for Medicare premiums
  • Life, health and accident insurance premiums paid by the taxpayer's employer Payments from a long-term care policy made to a nursing home or other care facility
Line 24 Child Support
Enter child support and all payments received as a foster parent.

 

Include payments shown on the Child Support Year-End Statement (FEN-851) paid to Friend of the Court.

Line 27 Other Nontaxable Income
Enter the description and amount of other nontaxable income, including all of the following:
  • Compensation for damages to character or for personal injury or sickness,
  • An inheritance (except an inheritance from the spouse),,
  • Proceeds of a life insurance policy paid on the death of the insured (except benefits from a policy on a spouse),
  • Death benefits paid by or on behalf of an employer,
  • The value over $300 in gifts of cash, merchandise or expenses paid on the taxpayer's behalf (rent, taxes, utilities, food, medical care, etc.) from parents, relatives or friends,
  • Minister's housing allowance,
  • Amounts paid directly to the taxpayer as a scholarship, stipend, grant or GI bill benefits,
  • Reimbursement from dependent care and/or medical care spending accounts, and
  • Payments made on the taxpayer's behalf except government payments made directly to an educational institution or subsidized housing project.
Line 28 Worker's Compensation, Veterans Disability, and Pension Benefits
Enter any workers' compensation benefits received, service-connected disability compensation benefits, or pension benefits received from the Veterans Administration.

 

Enter workers' compensation benefits received, service-connected disability compensation benefits and pension benefits received from the Veterans Administration.

Line 29 FIP and Other DHS Benefits
Enter the total payments made to the taxpayer's household by the Family Independence Agency (FIA) and all other public assistance payments.

 

The taxpayer's Client Annual Statement (DHS-1241) will show the taxpayer's total DHS payments. The statement(s) may include the following: Family Independence Program (FIP) assistance, State Disability Assistance (SDA), Refugee Assistance, Repatriate Assistance, and vendor payments for shelter, heat and utilities.

 

Note for Taxpayers Who Receive Child Support: Subtract the amount of child support payments entered on line 24 above from the Child Support Year-End Statement (FEN-851) from the total FIA payments and enter the difference here.

Line 32 Medical Insurance or HMO Premiums Paid
Enter medical insurance or HMO premiums the taxpayer paid for the taxpayer and his or her family members.

 

Include the following:

  • Medical insurance premiums paid through post-tax payroll deduction, and
  • The portion of auto insurance paid for medical coverage.

Do not include any of the following amounts:

  • Premiums paid for Medicare,
  • Insurance premiums paid for income protection insurance, long-term care insurance, or life insurance, or
  • Amounts paid through pre-tax payroll deductions.
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