Michigan's "Homestead property tax credit"....what a farce.

[Ken]

Fascinating. If you have $0 taxable income, you still have to send them a buck.

Nothing more than 100% SO IF YOUR INCOME WAS 98 CENTS you have to figure in the deductibles.
Line 7a yourself then dependents number X $26. then if you have development disabilities can use the number $500.00
Still after all the figuring there is still a buck send it. How much did you make, How much did we take send remainder.
ken

 

[300UGUY]

I live in Michigan and do my 85 year old MIL's taxes for her. She lives on social security alone - about $20,000. Until the homestead tax credit was modified, she got back about $1500 - nearly what her property taxes are. Last year she only got back $700, which for her was a huge financial hit.

I get a pension and the new pension tax hit is a big one for me and will also be for my wife when she retires. I plan to leave the state for a state with no income tax as soon as DW retires. I guess business taxes are lower here in Michigan now, though.

I'd like to go to Florida myself. Taxes aren't as important as the -14F that I woke up to.

 

[Travelover]

I'd like to go to Florida myself. Taxes aren't as important as the -14F that I woke up to.

:laughing: Yea, I saw minus 13 here this AM, too and Florida started to look good. We have a kid on the west coast so we will probably go to Washington state - it has 40 degree winters.

 

[Maxify55]

Uh, Excuse me but what is a State Income Tax?
We don't allow such nonsense down here.
Then, I rent out 5 acres of my farm to a horse enthusiast
who garners me an exemption from the County Property Tax Assessor.

Lived in Cleveland, Oh for over 30 years of my life.
Can't say I miss that white stuff or the cold much.
Precipitation is to squeegeed....not shoveled!

 

[grsthegreat]

For the 35-odd years I have been paying property taxes, I wonder how many times I was told: "When you are older with a reduced income, you will get a break on your state taxes because Michigan has this Homestead property tax credit....."

Yeah, right. I finished calculating my state income taxes this morning, and I finally qualify for the property tax credit because of my reduced income. And for the calender year 2013, after being billed for property tax in the amount of $3300 I get a credit of $1200, which reduces my state income tax bill by the huge sum of $51.00. Know how much my property tax bill went up last year? $72.00!!!

Does your state offer a property tax credit in any form that reduces your state income tax, and is the credit actually enough to make it worth dealing with all the paperwork involved?

here in Idaho they allow one exemption for your main living property (does not work on rental properties). This allows you to take the total value of your property and reduce it by up to $83,000 of its market value before they assess taxes.

That, and if you have forested property over 5 acres, you can get an additional timber exemption that drastically reduces your tax burden AS LONG AS YOU DONT LOG. Once you log, you pay tax on logs.

 

[zzvyb6]

You needed to engage a better accountant, one who can recommend additional deductions and 'casualties'. Start up a business which has assets and depreciation. For me, the loss of the pension deduction was a hit, but I seem to have made up for it in other ways.

 

[JDgreen227]

You needed to engage a better accountant, one who can recommend additional deductions and 'casualties'. Start up a business which has assets and depreciation. For me, the loss of the pension deduction was a hit, but I seem to have made up for it in other ways.

I had rental properties for 20 years and they gradually lost the depreciation allowance, and by the time that happened the real estate market had declined badly. I also started a small sideline business after I retired in late 2002 but it never gave me enough part time work to make it worthwhile. As for the pension tax Slick Rick the P-rick dumped on the the retired citizens here...just let me say it wasn't a surprise when he did that. His policies are also behind the phasing out of the Homestead property tax credit that I am griping about. Why anybody even voted for that a**hole in the beginning is a mystery to me.

 

[DennisArrow]

Buy at least five acres in Georgia and pledge for 10 years to not sub-divide it and you take off perhaps 40% of your property tax.

Turn 65 and you no longer pay "school" tax. About 55 to 60% of what's left of your property tax.

Have served your country and obtain a 100% disabilty by the VA in that service and PAY NO PROPERTY TAX..................Surely don't need anymore folks with the small values of some; but this state knows what honor means and how to take care of the folks who brought them to where they are..........God bless........Dennis