Michigan Homestead Credit - Can two owners claim?

TaxQsMI
TaxQsMI Member Posts: 1 Newcomer
in Credits/Deductions

Just wasn't sure if this is correct, but am I able to claim homestead credit in Michigan if the home is owned by me and my son (both our names are on the deed) and we both live there as our primary home?

Both of our incomes combined exceed the THR value, but my income alone does not so it allows me to receive the credit (Son does not since his income alone goes over). Is this correct or should I put neither when it prompts me to enter homeowner status since THR is over? Better put it, what does THR value exactly mean in this case and does this value make or break the elgibility of the homestead credit?

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 893 image
    edited March 19

    Hi ,

    Your thinking is on the right track. THR (Total Household Resources) is calculated on an individual basis — you do not combine your income with your son's just because you co-own and co-occupy the home. Michigan only requires combining THR for spouses. Since you and your son are filing separate returns, each of you uses your own THR to determine eligibility.

    So, if your individual THR is under the $71,500 limit, you can generally claim the Homestead Property Tax Credit on your return. Your son, whose individual THR exceeds the limit, would not be eligible. You would select "homeowner" for your status — not "neither."

    One thing to keep in mind: since you co-own the property, you should each claim only your proportionate share of the property taxes paid (for example, 50/50 if you split costs equally). You would not each claim the full amount of taxes on the home.

    The 2026 THR threshold may differ slightly from the 2025 figure of $71,500 since it adjusts annually for inflation, so it's worth confirming the current year's limit in the MI-1040CR instructions at https://www.michigan.gov/taxes when you file.

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