Michigan Homestead Credit for Prorated Rent Amounts

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taxfiler_123
taxfiler_123 Member Posts: 4 Newcomer

In the process of switching apartments, I paid ~600$ (prorated) for the month of August at Apt A, with a move-out date of August 8th. The lease for apartment B, where I live now, started on the 11th, and I paid a prorated amount here of ~$900. It seems like I should be able to claim the credit August since I rented and "actually occupied" an apartment for basically the full month.

Of course, the rent figures don't match the usual monthly numbers, so how do I report my rent paid for August in order to count it for the credit?

The FreetaxUsa software asks for the number of months spent at each residence, and the rent for each month. Since the prorated amounts for August don't match the monthly figures, would I simply report August as a separate month for each apartment?

In the software, this means I would basically create two entries for each address (for a total of 4): one for August and one for the other months I spent there.

Is there a better way to do this?

p.s. I'm familiar with the basic credit guidelines and just looking for an answer to this particular scenario, rather than a general overview. Thank you!

Best Answer

  • KristineS
    KristineS FreeTaxUSA Agent Posts: 109
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    Hi taxfiler_123, thanks for the question.

    If I understand your situation correctly, yes, you will create two entries in FreeTaxUSA, this is the way to do this.

    Instructions for the MI Homestead Property Tax Credit state if you move during the year, "If you rented, use total rent paid, then prorate the first/last month based on days of occupancy to determine the total amount of rent that may be claimed for credit."

    Please let us know if this answers your question.