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Credit Proration for FIP/MDHHS Benefit Recipients agency, unless payment is made with money withheld from
If you received FIP assistance or other MDHHS benefits in your benefit. If you pay lot rent on your mobile home, subtract
2022 , prorate your credit to reflect the ratio of income from the $3 per month property tax from the monthly rent amount.
other sources to your total household resources. To prorate Claim the remaining balance of
rent on line 45 and 46.
your credit, complete your MI-1040CR-2, lines 1 through 32 Line 47: Multiply total rent you paid on line 46 by 23%. If
first, then use the information from your MI-1040CR-2 to you lived in service fee housing, multiply total rent you paid
on line 46 by 10%. If you are a mobile home park resident,
complete the FIP/MDHHS Benefits Worksheet.
then add the $3 per month specific tax to the result.
Your Credit Line 48: Contact your local assessor for non-homestead
Line 33: Enter the amount below that applies to you millage rate.
(maximum $1,600). IMPORTANT: If you rented your Michigan homestead(s)
• FIP and MDHHS recipients, enter amount from line F of for the entire year, complete lines 45 through 49. If you
the FIP/MDHHS Benefits Worksheet. rented your Michigan homestead(s) for part of the year,
• Taxpayers who have total household resources over complete lines 45 through 56.
$63,000 are not eligible for a credit in any category. The Line 52: Multiply line 51 by 23%. If you lived in service fee
computed credit (line 12) is reduced by 10 percent for housing, multiply line 51 by 10%. If you are a mobile home
every $1,000 (or part of $1,000) that your total household park resident, then add $36 specific tax to the result.
resources exceeds $54,000. If you are filing a part-year
Direct Deposit
return (for a deceased taxpayer or a part-year resident),
you must annualize the total household resources to Direct Deposit is only available on an original credit and may
not be used to issue a refund on an amended credit.
determine if the credit reduction applies. If the annualized
income is more than $54,000, use the annualized total Check with your financial institution to (1) make sure it will
accept Direct Deposit, (2) obtain the correct Routing Transit
household resources to determine the percentage
Number (RTN) and account number, and (3) if applicable,
allowable in Table 1 below. If the annualized total
verify that your financial institution will allow a joint refund
household resources is $54,000 or less, no reduction is
to be deposited into an individual account.
necessary. Then use actual total household resources
Direct Deposit requests associated with a foreign bank account
attributable to Michigan on line 32. A surviving spouse are classified as International ACH Transactions (IAT). If your
filing a joint claim does not have to annualize the Direct Deposit is forwarded or transferred to a bank account
deceased spouse’s income. in a foreign country your Direct Deposit will be returned to
TABLE 1 — Treasury. If this occurs, your refund will be converted to a
HOMESTEAD PROPERTY TAX CREDIT PHASE OUT check and mailed to the address on your tax return. Contact
Total Household Resources Percentage Allowed your financial institution for questions regarding the status of
your account.
$54,000 or less ........................... 100% (1.00) a. RTN. Enter the nine-digit RTN. The RTN is usually
$54,001 - $55,000 ........................ 90% (0.90) found between the symbols |: and |: on the bottom of your
$55,001 - $56,000 ........................ 80% (0.80) check. The first two digits must be 01 through 12 or 21
$56,001 - $57,000 ........................ 70% (0.70) through 32.
$57,001 - $58,000 ........................ 60% (0.60) Enter your financial institution
$58,001 - $59,000 ........................ 50% (0.50) b. Account Number.
$59,001 - $60,000 ........................ 40% (0.40) account number up to 17 characters (both numbers and
$60,001 - $61,000 ....................... 30% (0.30) letters). The account number is usually found immediately
$61,001 - $62,000 ....................... 20% (0.20) to the right of the RTN on the bottom of your check. Include
$62,001 - $63,000 ........................ 10% (0.10) hyphens but omit spaces and special symbols. Do not include
$63,000 - above ............................. 0% (0.00) the check number.
c. Type of Account. Check the box for checking or savings.
To annualize total household resources, to project what it When You Have Finished
would have been for a full year: Sign your return
Step 1: Divide 365 by the number of days the claimant lived Review your claim to make sure your name(s), Social
or was a Michigan resident in 2022. Security number(s), address, and all other important
Step 2: Multiply the answer from step 1 by the claimant’s information are on the claim.
total household resources (line 32). The result is the If the return is completed by a tax preparer he or she must
annualized total household resources. include the name, address, telephone number of the firm
he or she represents and preparer tax identification number
Renters (Veterans Only) Check the box
or federal employer identification number.
See “Rent Eligible for Credit” on page 5. to indicate if Treasury may discuss your return with your
Line 45: If you rented a Michigan homestead subject to preparer.
local property taxes, enter the street number and name, city, The Taxpayer Protection Act requires paid preparers to sign
landlord’s name and address, number of months rented, the return and provide his or her preparer tax identification
rent paid per month, and total rent paid. Do this for each number. Additional information on the Taxpayer Protection
Michigan homestead rented during 2022 and for each time
Act is available at www.michigan.gov/taxes.
rental amounts changed. If you need more space, include an
additional sheet. Do not include more than 12 months’ rent. If A paid preparer must not engage in any fraudulent tax
you married in 2022, see page 6. Do not include amounts paid activity. Any concerns related to fraudulent activity of a
directly to the landowner on your behalf by a government paid preparer may be reported to the Michigan Department
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