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Total Household Resources (THR)

Total Household Resources (THR)

What is THR?

Total household resources (THR) are the total income (taxable and nontaxable) of both spouses or of a single person maintaining a household. There are types of income that you should include and those that you should exclude when calculating either a home heating credit or homestead property tax credit.

What is Income?

Income is federally adjusted gross income (AGI) plus all income specifically excluded from the calculation of AGI. Therefore, AGI and THR can be the same number if all income is taxable, but because THR requires the addition of income not taxed,  these numbers are usually different.

Use the list below when calculating what should be included in your THR for a home heating or homestead property tax credit.

What do you include and exclude in THR?

  • The list below is not exhaustive, but should be used to aid in calculating total household resources.

    • Wages, Salaries and Tips
    • Business Income (Federal Schedules C, C-EZ, E, or F)
    • Interest/Dividends
    • Capital gains
    • Social security, Supplemental security income, Retirement, Survivors, and Disability Insurance
    • Pension (include nontaxable pensions)
    • Railroad retirement benefits
    • Veteran's benefits
    • Worker's compensation
    • Child support/alimony
    • Foster care payments
    • Adoption subsidy payments
    • Cancelled debt income
    • Nontaxable gain from sale of primary residence
    • Student grants/scholarships
    • FIP/MDHHS payments (not food assistance)
    • Rent/Bills paid on your behalf
    • Gifts of cash over $300
    • Gambling over $300
    • Unemployment
    • Structured Settlements
    • Inheritance or life insurance policy from the death of someone other than a spouse
    • Retirement distribution related to CARES ACT (received in tax year 2020 and reported in AGI over 2020-2022)
    If you are a veteran filling out either the MI-1040CR or MI-1040CR-2, use line 25 or 24 to report any income that IS NOT taxable.

  • The list below is not exhaustive, but should be used to aid in calculating line 30 "Other Adjustments" on the MI-1040CR or line 29 of the MI-1040CR-2, which will then be excluded from THR.

    • Net operating loss deductions taken on the federal return
    • Payments from the foster grandparent or senior companion program
    • Energy assistance grants of tax credits
    • Medical insurance/HMO premiums you paid
    • Moving expenses when moving into Michigan (Armed Forces only)
    • Deduction for self-employment tax
    • Penalty on early withdrawal of savings
    • Alimony paid if deductible on your federal return
    • Educator Expenses
    • Health Savings Account Deductions
    • Self-employment health insurance deduction
    • Personal Loans - from relatives or friends
    • Inheritance or proceeds of life insurance policy from deceased spouse
    • Food Assistance
    • Credit cards
    • Savings accounts
    • Student Loans

THR and the Homestead Property Tax Credit

Total Household Resources are a main factor when computing a homestead property tax credit. Once your THR exceeds the annually established limit, you are no longer eligible to receive this credit, regardless of age.

  1. Use the lists above to determine what to include and exclude when calculating THR on your 1040CR or 1040CR-2. 
  2. Use the age groups below to determine what table to use when completing your form(s).

Over 65

After calculating THR, for those 65 or older at the end of the tax year they are filing, will usually use Table A from the MI-1040 booklet to figure out how THR impacts their credit claim.

Under 65

After calculating THR, those under 65 will usually use Table B from the MI-1040 booklet to figure out how THR impacts their credit claim.

two people working on paperwork between two computers.

Adjustments and Denials

Did your credit get denied or adjusted by Treasury?