Michigan Tax Credits

You must use all taxable and non-taxable income such as Disability benefits, Department of Human Service benefits, W-2, unemployment, child support, etc. to apply for these credits.  Please call the Resource Center at 810-767-0500 to find a volunteer income tax site near you; to see if you qualify for these credits.  You may still qualify for these Michigan credits even if you do not have to file federal income taxes.

Property Tax Credit

Who May Claim a Property Tax Credit?

You may claim a property tax credit if all of the following apply:

• Your homestead is located in Michigan.

• You were a Michigan resident at least six months of 2005.

• You pay property taxes or rent on your Michigan homestead.

You may not claim a property tax credit if your household income is over $82,650. The computed credit is reduced by 10 percent for every $1,000 (or part of $1,000) that household income exceeds $73,650. If filing a part-year return, you must annualize household income to determine if the income limitation applies.

Home Heating Credit

Who May Claim the Home Heating Credit?

This credit helps low income families pay their home heating costs. To see if you may claim a credit, answer the following questions:

• Are you a full-time student who is claimed as a dependent on another person’s income tax return?

• Did you live in a licensed care facility for the entire year? (See “Licensed Care Facilities” on page 5.)

If you answered YES to either of these questions, you cannot claim a home heating credit. If you answered NO to both questions, you may claim a credit if:

• Your homestead is in Michigan,

• You own or rent the home where you live and income guidelines do apply

You can have only one homestead at a time and you must be the occupant as well as the owner or renter.

IRS Free File

Whoever said there is no such thing as a free lunch may have been right. But for millions of eligible taxpayers, with an Adjusted Gross Income of $50,000 or less, there is Free File. Free File is online tax preparation and electronic filing through a partnership agreement between the IRS and the Free File Alliance, LLC. In other words, you can e-file... free.