Q:

How does the Homestead Property Tax Credit affect renters?

A:

Quick Answer

Michigan's Homestead Property Tax Credit is available to both renters and homeowners living within Michigan, as the Michigan Department of Treasury explains. This credit is available for taxpayers paying property taxes or rent on a primary residence and has specific eligibility criteria.

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Full Answer

Renters applying for the credit must have an income within the limits outlined by the state, according to the Michigan Department of Treasury. Renters are not eligible if the state or federal government provided all of their household income. Individuals over the age of 65 who pay rents at or above a certain percentage of their income are eligible for an alternative credit from the state. Most individuals must file a form with the state to receive a refund based on their total rent paid each year. The rent total is assumed to include money that pays the landlord's property tax.

Special circumstances exist that change the credit amount or method of calculation, as the Michigan Department of Treasury explains. Residents of nursing home facilities may not claim rent, but they can claim a portion of property taxes as a refund. Mobile home park residents may claim up to 20 percent of rent less a specific tax amount annually. The Michigan Department of Treasury recommends consulting a professional tax preparer for information and application of these laws.

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