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 2020
•You own your Michigan homestead and property taxes were levied in 2020, or you paid rent under a rental contract.
You can have only one homestead at a time, and you must be the occupant as well as the owner or renter. Your 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 your homestead.
Your homestead is in your state of domicile. Domicile is the place where you have your permanent home. It is the place to which you plan to return whenever you go away. College students and others whose permanent homes are not in Michigan are not Michigan residents. Domicile continues until you establish a new permanent home.
Property tax credit claims may not be submitted on behalf of minor children. Filers claimed as a dependent on someone else’s return see instructions for line 24 on page 31 to correctly report support received.
You may not claim a property tax credit if your total household resources are over $60,000. In addition, you may not claim a property tax credit if your 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 total household resources exceed $51,000. If filing a part-year return, you must annualize total household resources to determine if the income limitation applies.