Important Tax Credits - Michigan Free Tax Help

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Important Tax Credits

Are you getting every income tax credit you are due? If you are not, then you might be leaving your hard-earned money with either the state or federal government. Below is some information about many of the tax credits for which you may be eligible. Click on the links below to learn more about the credits and eligibility or visit one of the many free income tax preparers near you or dial 2-1-1.

Get information about tax refunds and updates on the status of your federal or state e-file or paper tax returns by clicking here.

Federal Tax Credits

The Child & Dependent Care Credit

The Child Tax Credit (Important changes to the Child Tax Credit will help many families get advance payments of the Child Tax Credit starting in the summer of 2021. Non-filers can now sign-up for advance payment)

The Earned Income Tax Credit (there is both a Michigan and federal EITC)

Educational Tax Credits & Deductions (Hope, American Opportunity & Lifetime Learning credits)

Michigan’s Home Heating Credit Information

(No income tax filing required to claim this credit, just Michigan Form 1040CR-7)

The Home Heating Credit is a way the State of Michigan helps you pay some of your heating expenses if you are a qualified Michigan homeowner or renter. You may apply for a Home Heating Credit for your November 1, 2019 through October 31, 2020 primary heat source. To apply, you must meet the total household resources guidelines (see below), own or rent the home where you live (including rented apartments and mobile homes) and have your heat bill (gas, electric or heating oil) in your name.

You claim the credit, you should complete the Michigan Home Heating Credit Form (MI-1040CR-7 using the instruction booklet). The deadline for submitting this form is September 30, 2021. If you are unsure of whether or not you qualify for the Home Heating Credit, or have any questions, contact your nearest free tax site.

For 2021 (November 2019 – October 2020), the Home Heating Maximum Total Household Resources are:

  • $14,043 for a single person household
  • $18,986 for a two-person household
  • $23,900 for a three-person household
  • $28,842 for a four-person household
  • $33,757 for a five-person household
  • $38,700 for a six-person household

(add $4,943 for each additional person over six)

Go to the the Michigan Department of Treasury Home Heating Credit web page for more detailed information, including a Total Household Resources Checklist to help determine what kinds of income needs to be included.

Michigan’s Homestead Property Tax Credit Information

(No income tax filing required to claim this credit, just Michigan Form 1040CR)

Michigan’s homestead property tax credit is how the State of Michigan can help you pay some of your property taxes if you are a qualified Michigan homeowner or renter and meet the requirements. You should complete the Homestead Property Tax Credit Claim form (MI-1040CR) to see if you qualify for the credit.

The credit, for most people, is based on a comparison between property taxes and total household resources. Homeowners pay property taxes directly and renters pay them indirectly with their rent.

Given that each taxpayer has unique circumstances that determine their eligibility for the credit, you should look at the MI-1040CR Instructions or go to the Michigan Department of Treasury Homestead Property Tax Credit page to learn more and access the forms.