Home Heating Credit And Shared Housing Situations

Received Family Independence Program (FIP) Assistance From the State of Michigan?

If you receive Family Independence Program (FIP) assistance or other public assistance, you may be eligible to claim a home heating credit if you owned or rented a homestead in 2022. If you owned or rented only part of the year, you must prorate your credit. For more information see instructions for a part-year owner or renter.

If you receive FIP assistance, State Disability Assistance (SDA), or you are enrolled with the Department of Health and Human Services (DHHS) for direct payment, by law Treasury must send your credit directly to your heat provider.

If your heat is provided by DTE Energy, Consumers Energy, or SEMCO Gas, your home heating credit may be sent directly to your heat provider. For more information see instructions.

If, at the time you file this claim, your heating costs are included in your rent, you must reduce the standard credit computation by 50%. Your credit will be issued as a check, rather than an energy draft (see lines 7 and 38 of MI-1040CR-7).

Shared Housing Situations

When two or more single people share a home, each may file a home heating credit claim (MI-1040CR-7) if each is contracted to pay rent or owns a share of the home. Each person may file a claim based on their total household resources, personal exemptions and their share of the standard allowance found in Table A.)

First, determine the standard allowance by combining the number of personal exemptions for all claimants sharing the home (see Table A). The number of total personal exemptions (also found in Table A) determines the standard allowance amount. Divide the standard allowance amount by the total number of eligible claimants in the home.

Examples of how to calculate the standard allowance:

Example one:

Three men share an apartment. Each has a signed lease and pays 1/3 of the total rent. They are all under the age of 65. Each of them is eligible to file a home heating credit claim (MI-1040CR-7) if they meet the income requirements. The standard allowance for three exemptions is $888 on Table A. To compute each individual's standard allowance divide $888 by 3 (exemptions). The standard allowance for each of the three men is $296 (rounded/no cents included).

$888 divided by 3 = $296 (rounded, no cents included)

Each person enters the prorated standard allowance of $296 on line 35 of their home heating credit form.

Example two:

Emma and Ruth own a home jointly. Emma is 59 and Ruth is a senior citizen 65 years old. Each of them is eligible to file a home heating credit claim (MI-1040CR-7) if they meet the income requirements. (see Table A) The standard allowance for two exemptions is $706 on Table A. To compute each individual's standard allowance we must consider their ages.

For Emma, aged 59, divide $706 by 2. Her standard allowance is $353.

Emma enters the prorated standard allowance of $353 on line 35 on her home heating credit form.

Since Ruth qualifies for a special exemption based on her age, she is allowed $182 in addition to her standard allowance of $353. $182 is the difference between the standard allowance for 3 exemptions and the standard allowance for 2 exemptions. Ruth's standard allowance is $535.

Ruth's special exemption amount for her age: $888 - $706 = $182.

($888 is the standard allowance for 3 & $706 is the standard allowance for 2 on Table A)

Ruth: $353 + $182 = $535 this is her standard allowance

Ruth enters the prorated standard allowance of $535 on line 35 of her home heating credit form (MI-1040CR-7).

Part-Year Resident Owners/Renters

To be eligible to file a home heating credit (MI-1040CR-7) you must be contracted to pay rent or own and occupy your Michigan home. You must meet the income requirements in Table A. You must prorate the standard allowance you qualify for, found in Table A based on the number of days you rented or occupied your Michigan home.

Example:

You're a single adult (under the age of 65) who moved to Michigan on September 1. You resided in Michigan for 122 days (September 1 - December 31). To prorate: Divide 122 by 365 days and multiply the result by your standard allowance of $524.

122 divided by 365 = .334
$524 (1 exemption) X .334 = $175 This is your standard allowance (rounded/no cents included)

Enter your prorated standard allowance of $175 on line 35 of your home heating credit (MI1040CR-7)

Deceased Taxpayers

The estate of a taxpayer who died in 2018 (or 2019 before filing a claim) may be entitled to a credit for 2018. The surviving spouse, other authorized claimant, or personal representative can claim this credit. The surviving spouse may file a joint claim with the deceased and include the deceased person's income in total household resources. For more information view the frequently asked questions for Deceased Taxpayers and the instruction booklet under Deceased Claimants.

Example:

A single taxpayer (under the age of 65) passes away on July 15. There are 165 days between January 1 and July 15. To prorate: Divide 165 by 365 days and multiply the result by the descendant's standard allowance.

165 divided by 365 days = .452
$524 (1 exemption) X .452 = $237 is your standard allowance (rounded/no cents included)

Note: Deceased taxpayer must meet the income requirements in Table A.

Enter your prorated standard allowance of $237 on line 35 of your home heating credit (MI-1040CR-7)