Michigan Michigan Homestead Property Tax Credits for Separated or Divorced Taxpayers

Michigan Homestead Property Tax Credits for Separated or Divorced Taxpayers
2105, Michigan Homstead Property Tax Credits for Separated or Divorced Taxpayers
Worksheet For Figuring Taxes Paid by Separated
or Divorced Claimants

2105 (Rev. 01-19)

Tax Year

A. Total Household Resources for the Period Couple Lived Together
1.

1. Filer's income for period couple lived together during the tax year.

2. Spouse's income for period couple lived together during
the tax year.

+

2.

3. Add both incomes together for total household resources for period
couple lived together during the tax year.

3.

B. Your Percentage of Total Income

4. - 5. - 6. - Divide the amount in box 4 by the amount in box 5 and enter the answer in box 6.
4. Enter your income from box 1 or 2.

÷

5. Enter amount from box 3.

=

6. Your percentage of total income.

%

C. Percentage of Year Couple Shared Homestead

7. - 8. Divide number of days spouses had a joint household by 365 (366 in a leap year). Enter in box 8.
7. Number of days couple shared homestead.

÷

8. Percentage of year couple shared homestead.

365 =

%

D. Computing Amount of Prorated Taxes for Your Credit Claim
9. Total allowable property tax billed on homestead during the tax year.

10. Enter percentage from box 8.
11. Multiply amount in box 9 by percentage in box 10
	 to arrive at tax paid while household was shared.

X

12. 	Multiply amount in box 11 by percentage in box 6 to determine the
	amount of tax you are entitled to claim for the time the household
	was shared. Enter this amount on MI-1040CR, Part 3, column B
	
or MI-1040CR-2 Part 1, column B. Whichever form you use the
	
number should go on the line titled "Prorated taxes."

9.

10.

%

11.

12.

NOTE: The amount in box 12 may not be your total tax eligible for credit. Property tax or rent paid on a homestead for the period
after separation may be eligible for credit. Do the computations on MI-1040CR, Part 3, column A or MI-1040CR-2, Part 1, column
A, to determine additional tax eligible for credit. Renters should complete the part referring to "Renters" on the appropriate form.

Michigan
Homestead
Property
Tax Credits
for Separated
or Divorced
Taxpayers
If you became divorced or separated during the
tax year, this information will help you compute
the prorated share of taxes or rent used to
complete a homestead property tax credit.
Each spouse can claim credit for his or her share
of property taxes paid before the separation. In
addition, each spouse can claim credit for taxes
paid individually after the separation.
If you were separated but file a joint income tax
return with your spouse, this information does
not apply to you.

Homestead Property Tax
Credits For Separated or
Divorced Taxpayers
This brochure helps you allocate your total household
resources and property taxes for the year you separated
or divorced. Before you start, you will need:
1.	The Michigan Individual Income Tax (MI-1040)
or, if applicable, the Michigan Homestead Property
Tax Credit Claim for Veterans and Blind People
	 (MI-1040CR-2) booklets;
2.	Property tax bills or lease agreements for the tax
year; and
3. 	Total annual income amount for each spouse 		
for the tax year.
Before separation, taxes are divided in the same ratio
as the percentage of total income each spouse earned
while they shared a homestead. For example, if the filer
earned 65 percent of the income and the spouse earned
35 percent, the filer claims 65 percent of the prorated
taxes and the spouse claims 35 percent. If one spouse's
resources for the period before separation is less than
half the taxes paid during that period, the other spouse
can claim the taxes for that period.
After separation, the spouse who remains in the homestead is entitled to claim the remaining portion of the
taxes, regardless of who pays the rent or house payment.
The spouse who vacated the homestead may claim
credit for the property tax or rent on a new homestead,
prorated to the portion of the year the new homestead
is occupied after separation. If neither spouse remains
in the homestead, each is eligible for credit based on
property taxes or rent on his or her new household,
prorated to the portion of the year the new homestead
is occupied after separation.
Each spouse files an individual claim based on his or her
total household resources. Rent or house payments made
by someone else must be included in total household
resources. Child support payments are income to the
recipient, but are not deductible by the payer.

Computing the Credit
Use the worksheet on the back of this brochure to allocate
taxes paid. Follow the instructions in Parts A and B to
determine your percentage of total income for the period
you shared a household. Include in Part C the number
of days in the tax year you and your spouse shared a
homestead. In Part D, line 9, use the total annual property tax on the home you shared before separating. If
the home you shared was rented, multiply the monthly
rent by 12 and multiply the result by 23 percent (.23).
Enter the result on line 9 as total annual property taxes.

Enter the prorated tax from Part D, line 12 of this worksheet
in Part 3, column B of your MI-1040CR or Part 1, column
B of your MI-1040CR-2.
To prorate the property taxes on the homestead occupied
after separation, complete the computations in Part 3,
column A, MI-1040CR or Part 1, column A, on your
MI- 1040CR-2.
If you paid rent, complete the part of your MI-1040CR
or MI-1040CR-2 that refers to "Renters". Complete the
remainder of your homestead property tax credit claim
using the appropriate instruction booklet.

Sample Computation
Bob and Alice separated October 1. They both work and neither qualifies for special exemptions. They owned a home
on which the taxes for the year were $1,860. Alice continued to live in the home and Bob moved to an apartment
on October 1 and paid $350 per month rent for the rest of the year. Alice earned $20,000 and Bob earned $25,000.
They lived together for 273 days. They must prorate their taxes as follows.

Figure each spouse's income for the time they
lived together (income ÷ 365) x 273 days ............................

Alice

Bob

$14,959

$18,699
$33,658

Add both spouse's incomes for the period .........................

Divide each spouse's income by the
combined income for the period ...................................... $14,959 ÷ $33,658 = 44%
Property tax paid while living together ($1,860 ÷ 365) x 273

$18,699 ÷ $33,658 = 56%

$1,391

Multiply each income percentage by the taxes
paid on the home while they lived together .................... 44% x $1,391 = $612

56% x $1,391 = $779

Alice may claim $612 plus the taxes on the home
for the rest of the year ($1,860 ÷ 365) x 92 ...................... $612 + $469 = $1,081
Bob may claim $779 plus 23% of his rent
costs for the rest of the year ($350 x 3) x .23 ...................

$779 + $242 = $1,021

Multiply each annual income by 3.2% ............................. $20,000 x .032 = $640
						
Subtract nonrefundable portion from tax paid
to arrive at credit tax eligible for credit ............................. $1,081 - $640 = $441
Multiply tax eligible for credit by 60%
to arrive at credit .............................................................. $441 x .60 =

$265

$25,000 x .032 = $800
$1,021 - $800 = $221
$221 x .60 =

$133