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Homestead Property Tax Credit Tips

Individual Income Tax Tips
Homestead Property Tax Credit Tips

  1. Include all resources in the Total Household Resources (THR) calculation, including cash gifts over $300, Social Security Income, and all taxable and nontaxable income. Learn what should and should not be included in THR and review RAB 2025-18 for details.

    If expenses exceed reported THR, Treasury must request additional information, which delays processing of the return.

  2. Report your monthly (not annual) rent cost when filing the Homestead Property Tax Credit (HPTC). Keep verification documents, such as lease, rental agreement, or property tax statement, available in case Treasury requests them.

    If information is incorrect or missing, Treasury must request additional information, which delays processing of the return, and the HPTC may be denied.

  3. Verify your school district code using Treasury’s School District Code List when claiming the Homestead Property Tax Credit (HPTC).

    An incorrect school district code may delay processing because it impacts calculations.

  4. Verify whether your residence is designated as service fee housing with your local assessor before claiming the Homestead Property Tax Credit (HPTC).

    Service fee housing status impacts the credit amount. If you live in service fee housing but do not state that on your return, the return cannot be automatically processed and must instead be reviewed manually.

  5. If claiming the Homestead Property Tax Credit (HPTC) while living in a nursing home, notify the facility when filing to ensure they have submitted the necessary information to Treasury.

    If the nursing home facility does not send the necessary information, Treasury must request it again via a letter to the taxpayer, which delays processing of the return. Nursing home facilities receive a Treasury letter prior to individual income tax season that instructs them on how to submit information through Michigan Treasury eServices.