Household income is used to determine eligibility for Homestead Property Tax Credit and Home Heating Credit. One of the most frequent reasons for adjustment or denial of these two credits is an error in reporting household income.

What is Household Income (HHI):

Household income includes all income (taxable and nontaxable) received by all adult household members that is used for household expenses during the year. This includes income that may be exempt from federal adjusted gross income.

Checklist for Determining Household Income

What is Adjusted Gross Income (AGI):

Adjusted gross income is the amount of income determined to be taxable by the Internal Revenue Service on the federal tax return. This is the total of all the money (qualified income) you made during the calendar year minus all qualified deductions.

(Total Gross Income - Total Amount of All Deductions = Adjusted Gross Income)

View a partial list of income that is taxable in Michigan, Included in HHI and/or included in AGI.

Can someone claim you as a dependent?

If you were claimed by your parents (or someone else) as a dependent on their tax return, check 'Yes' as the answer. If someone else has claimed you as a dependent, you may be eligible for a Property Tax credit or a Home Heating credit. However, you must include all support or assistance you received from parents or others in household income. View the MI-1040 instruction booklet for other requirements.

Also, if your AGI is $1,500 or less for single filers or those who are married filing separately or $3,000 or less if filing a joint return, you do not need to file a return unless you are claiming a refund of withholding. Also, see Worksheet 2 Filer Eligible To Be Claimed As A Dependent (at the bottom of page 10 of the MI-1040 Instruction Booklet)

Were you a full-time student during the tax year in question?

Home Heating Credit: Students attending a school, community college, college or university who are claimed as a dependent on another person's return do not qualify for this credit. View MCL section 206.527a(11)

Property Tax Credit: If you are a student living in college/university-operated housing (including dormitories, residence halls or apartments) you do not qualify for this credit. However, students who are claimed by another person and do not live in college/university-operated housing may qualify for this credit

View FAQ's for Students for more information.