2014 Michigan MI-1040CR7 Home Heating Credit Claim Instruction

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2014 Michigan
MI-1040CR-7
H o m e H e at i n g C r e d i t C l a i m
w w w. m i fa s t f i l e . o r g
aa E-file your Michigan Home Heating Credit Claim (MI-1040CR-7) with or without a
Michigan Individual Income Tax Return (MI-1040) and get your home heating credit faster.
aa E-file eliminates many of the errors that lengthen processing times. E-file returns are
usually processed within 14 business days. Please allow 14 days before checking the status
of your e-filed return.
aa Visit the Michigan Department of Treasury Web site at www.MIfastfile.org for a list of
e-file resources, how to find an e-file provider, and more information on free e-file services.
Filing Deadline. The deadline for filing your 2014 home heating credit is September 30, 2015. The
filing of an extension for income taxes does not extend the due date for the home heating credit.
Important Information. Michigan’s home heating credit is funded by federal Low-Income Home
Energy Assistance Program Grants. Your credit may be larger or smaller than the credit you received last year
because the amount of money Michigan receives from this grant varies every year. For general information visit
www.michigan.gov/heatingassistance.
Direct Deposit. If you are eligible to receive a check for your home heating credit claim, you may request
that it be deposited directly into your account at a financial institution by filing a Direct Deposit of Refund (Form
3174). See page 17 of this booklet. Claimants receiving heat drafts are not eligible for Direct Deposit.
Filing Due Date: Sept ember 30, 201 5
w w w. m i c h i g a n . g ov/ ta x e s
Issued under Public Act 281 of 1967. This booklet is intended as a guide to help you prepare your credit claim. It does not take the place of the law.
Tax Information and Assistance
Tax Information and Assistance
Forms
Self Service Options
Find tax forms using the Internet and Telephone Options
listed on this page. Commonly used forms are also
available at Treasury offices (see back cover), most
public libraries, Northern Michigan post offices, and
Department of Human Services (DHS) county offices.
The Michigan Department of Treasury (Treasury) offers
a variety of services designed to assist you, and most are
available 24 hours a day, seven days a week.
IMPORTANT: To obtain information about your
account using the Internet and Telephone Options listed
below, you will need the following information from
your return:
• Social Security number (SSN) of the primary filer
(the filer listed first on the return)
• Tax year of the return
• Adjusted gross income (AGI) or total household
resources
• Filing status (single, married filing jointly, married
filing separately).
Internet Options
www.michigan.gov/incometax
Find the following information on this Web site:
• Current year forms and instructions
• Answers to many tax preparation questions
• Most commonly used tax forms
• Free assistance in preparing your return
• Other tax resources.
www.michigan.gov/iit
This secure Web site was designed specifically to protect
your personal tax information. Use this Web site to:
• Check the status of your return
• Check estimated payments you made during the year
• Check the status of letters you have sent to Treasury
• Change your address
• Ask a specific question about your account.
Telephone Options
(517) 636-4486
Automated Information Service
With Treasury’s automated phone system, you can:
• Request the status of your refund
• Check the status of letters you have sent to Treasury
• Request information on estimated payments
• Order current tax year forms.
While most questions can be answered by the Automated
Information Service, customer service representatives
are available from 8 a.m. to 4:45 p.m., Monday through
Friday.
Assistance is available using TTY through the Michigan
Relay Service by calling 1-800-649-3777 or 711. Printed
material in an alternate format may be obtained by
calling (517) 636-4486.
Additional Help
If you need help completing your credit form, contact
your local community service agency or senior citizen
center to find out if a volunteer tax assistance program is
available in your area.
When You Have Finished
Review your claim for the following common errors that
may delay your refund:
• The MI-1040CR-7 is a two-page form; both pages
must be completed and filed to be processed
• Illegible writing
• Transposing numbers in the SSN
• Entering figures on wrong lines
• Math errors
• Filling in lines if they do not apply to you or if the
amount is zero
• Missing, incomplete, or applied for Social Security
number. If you don’t have an SSN or an Individual
Taxpayer Identification Number (ITIN) for your
dependent, apply for one through the IRS. Do not
claim them on your MI-1040CR-7, line 14, until you
have received their SSN or ITIN.
• Failing to report total household resources from all
sources, both taxable and nontaxable
• Failing to reduce the heating credit by 50 percent
when heat is included in your rent.
Before you mail your claim, review it carefully and
make sure it is complete. Keep a copy of your claim and
all schedules for six years.
Mail your claim to: Michigan Department of Treasury
Lansing, MI 48956
You can file a home heating credit for the
current tax year only.
E-filing your return is
easy, fast, and secure!
www.MIfastfile.org
2
General Information
Important Information for All Claimants
This booklet contains forms and instructions to file
and calculate your home heating credit. Please read
these instructions carefully. The request for your Social
Security number is authorized under United States Code
(USC) Section 42. Social Security numbers are used
by Treasury to conduct matches against benefit income
provided by the Social Security Administration and other
sources to verify the accuracy of the home heating and
property tax credit claims filed and to deter fraudulent
filings.
The filer, spouse and dependent(s) Social Security
numbers must be completed for all household members.
If these Social Security numbers are not provided the
credit will be reduced or denied accordingly.
If you currently receive Family Independence Program
(FIP) assistance or other public assistance, you may
claim a home heating credit if you owned or rented a
homestead in 2014. If you owned or rented only part of
the year, you must prorate your credit. See instructions
for a part-year owner or renter on page 5.
If you receive FIP assistance, State Disability Assistance
(SDA), or you are enrolled with the DHS for direct
payment, by law Treasury must send your credit directly
to your heat provider.
If your heat is provided by DTE Energy, Consumers
Energy, or SEMCO Energy Gas, your home heating
credit may be sent directly to your heat provider. (See
instructions for line 15 on page 7.)
If, at the time you file this claim, your heating costs are
included in your rent, your credit must be reduced by 50
percent. Your credit will be issued as a check, rather than
an energy draft (see MI-1040 CR-7, lines 7 and 38).
If you file an income tax return (MI-1040), do not staple
your home heating credit claim to the MI-1040. Fold it
and leave it loose in the envelope. You cannot apply your
home heating credit to your income tax liability.
If you file a property tax credit claim (Michigan
Homestead Property Tax Credit Claim (MI-1040CR) or
Michigan Homestead Property Tax Credit for Veterans
and Blind People (MI‑1040CR-2)) without an MI‑1040,
you should include your home heating credit claim with
the property tax credit claim form.
Who May Claim a Credit
This credit helps low income families pay their home
heating costs. To see if you may claim a credit, answer
the following questions:
• A
re you a full-time student who is claimed as a
dependent on another person’s income tax return?
• Did you live in a licensed care facility for the entire
year? (See “Licensed Care Facilities” on page 5.)
If you answered yes to either of these questions, you
cannot claim a home heating credit. If you answered no
to both questions, in order to be eligible for a credit:
• Your homestead must be in Michigan, and
• You must own a home or have a lease agreement to
pay rent for the home where you live.
• You cannot live in college- or university-operated
housing (including dormitories, residence halls, or
apartments)
• Your income must be within the income limits listed
in Tables A and B on page 19.
You can have only one homestead at a time and you
must be the occupant as well as the owner or renter.
Your homestead can be a rented apartment or a mobile
home on a lot in a mobile home park. A vacation home or
income property is not considered your homestead.
Your homestead is in your state of domicile. Domicile is
the place where you have your permanent home. It is the
place to which you plan to return whenever you go away.
College students and others whose permanent homes are
not in Michigan are not Michigan residents. Domicile
continues until you establish a new permanent home.
Spouses who share a home are entitled to only one
home heating credit based upon the number of allowable
exemptions in the household or the heating costs for the
home, and joint total household resources.
If you were separated for all or part of the year and file
a joint federal or Michigan income tax return with your
spouse, your credit claim is based upon either the heating
costs of only one home or the number of exemptions in
each household. The total household resources must be
the combined income of both spouses for the entire year
Spouses who maintain separate homes for the entire
year and do not file joint federal or Michigan income
tax returns may each claim a credit based upon
their separate heating costs or exemptions and total
household resources. Attach Married Filing Separately
and Divorced or Separated Claimants Schedule
(Form 5049), which can be found on Treasury’s Web site.
If you were separated or divorced during 2014 and do not
file joint income tax returns, your credit must be based
on your share of the heating costs or exemptions before
separation, plus your exemptions and individual heating
costs after separation. Attach a schedule showing your
computation and Form 5049.
When to File
The final date for filing a 2014 home heating credit is
September 30, 2015. (Your claim must be postmarked
by September 30, 2015.) The filing of an extension
for income taxes does not extend the due date for the
home heating credit. File early to receive priority
processing.
3
Exemptions
Total Household Resources
You may claim one exemption for each of the following:
• Yourself, unless you are eligible to be claimed as a
dependent on someone else’s return
• Your spouse
• Your children who live with you, even if their support
comes from FIP assistance or someone else. If you do
not have custody of your children, you cannot claim
them on your MI-1040CR-7, even if you can claim
them on your MI-1040
• Any other dependent who lives with you and for
whom you provided more than half their support.
Total household resources are the total income (taxable
and nontaxable) of both spouses or of a single person
maintaining a household. They are AGI, excluding net
business and farm losses, net rent and royalty losses, and
any carryover of a net operating loss, plus all income
exempt or excluded from AGI.
Total household resources include the following items
not listed on the form:
• Capital gains on sales of your residence regardless of
them being exempt from federal income tax
• Nongovernmental scholarship, stipend or grant
payments paid directly to an educational institution
• Compensation for damages to character or for
personal injury or sickness
• An inheritance (except an inheritance from your
spouse)
• Proceeds of a life insurance policy paid on the death of
the insured (except benefits from a policy on your
spouse)
• Death benefits paid by or on behalf of an employer
• Minister’s housing allowance
• Forgiveness of debt, even if excluded from AGI
(e.g., mortgage foreclosure)
• Reimbursement from dependent care and/or medical
care spending accounts
• Payments made on your behalf, except government
payments, paid directly to third parties such as an
educational institution or subsidized housing project.
Total household resources do NOT include:
• Net operating loss deductions taken on your federal
return
• Payments received by participants in the foster
grandparent or senior companion program
• Energy assistance grants
• Government payments made directly to a third party
(e.g., payments to a doctor, GI Bill benefits and
payments from a PELL grant).
NOTE: If payment is made from money withheld from
your benefit, the payment is part of total household
resources. (For example, the DHS may pay your rent
directly to the landlord.)
• Money received from a government unit to repair or
improve your homestead
• Surplus food or food assistance program benefits
• State and city income tax refunds and homestead
property tax credits
• Chore service payments (these payments are income
to the provider of the service)
• The first $300 from gambling, bingo, lottery, awards,
or prizes
• The first $300 in gifts of cash or merchandise
received, or expenses paid on your behalf (rent, taxes,
You may not claim an exemption for someone who
is claiming themselves. You can claim additional
exemptions for each special condition that applies to you,
your spouse, or your dependents. If one spouse qualifies,
claim 1; if both qualify, claim 2. Special exemptions are
for deaf, disabled or blind, and qualified disabled veteran.
See instructions for line 13 on page 7.
Deceased Claimants
If the taxpayer died during 2014, the personal
representative may claim the standard heating credit but
may not claim the alternate heating credit. If your spouse
died in 2014, use the same number of exemptions you
would have used had your spouse lived all year.
The surviving spouse may file a joint claim for 2014.
Write your name and the deceased’s name and both Social
Security numbers on the MI‑1040CR-7. Write “DECD”
after the deceased’s name.
You must report the deceased’s income. Sign the claim on
the deceased’s signature line, write “Filing as surviving
spouse.” Enter the deceased’s date of death in the
“Deceased Taxpayers” box on the bottom of page 2 of the
form.
If filing as a personal representative or claimant for
a single deceased taxpayer or when both taxpayers are
deceased:
• You must attach a U.S. Form 1310 or Michigan Claim
for Refund Due a Deceased Taxpayer (Form MI-1310)
and a death certificate
• Enter the name of the deceased person(s) in the Filer
and Spouse name fields with “DECD” next to the
name(s) and the representative’s or claimant’s name,
title and address in the home address field
• Use the deceased’s Social Security number on the
form
• Enter the date(s) of death in the designated boxes on
the bottom of page 2
• You must prorate for the number of days from
January 1 until the date of death, see page 5 for
prorating credit.
4
utilities, food, medical care, etc.) by parents, relatives,
or friends
• Amounts deducted from Social Security or Railroad
Retirement benefits for Medicare premiums
• Life, health, and accidental insurance premiums paid
by your employer
• Loan proceeds
• Inheritance from a spouse
• Life insurance benefits from a spouse
• Payments from a long-term care policy made to a
nursing home or other care facility
• Most payments from The Step Forward Michigan
program.
For more information on Total Household Resources,
visit www.michigan.gov/taxtotalhouseholdresources.
Special Provisions for Farmers
If you received a farmland preservation tax credit in
2014, you must include it in total household resources.
You may subtract the business portion of your homestead
property tax credit if you included it in taxable farm
income.
Licensed Care Facilities
If you live in a licensed care facility, generally you
do not qualify for the home heating credit. Licensed
care facilities include adult foster care homes, licensed
homes for the aged, nursing homes, and substance abuse
treatment centers. If you lived in a licensed care facility
only part of the year, you could qualify for a partial
credit for the period you lived outside the facility. (See
prorating instructions for a part-year owner or renter on
this page.)
If your spouse lives in a licensed care facility and you
live in the family homestead, you may still qualify for a
credit. File a joint credit claim and do not check a box
on line 12.
Subsidized senior citizen apartments are not licensed
care facilities. If you live in a subsidized senior citizen
apartment, you may apply for a credit.
Standard Credit
The standard credit computation uses standard
allowances established by law.
Use Table A on
page 19 to find the standard allowance for the number of
exemptions you claimed.
Shared Housing Standard Allowance
If you share a home but are not the owner or you do
not have a contract to pay rent, you cannot claim a
credit.
When two or more single adults share a home, each may
claim a credit if each has contracted to pay rent or owns a
share of the home. Each should file a home heating credit
based on his or her total household resources and his or
her share of the standard allowance. First, determine the
standard allowance from Table A on page 19 by adding
the personal exemptions of all the claimants sharing a
home. Divide this standard allowance by the number of
claimants in the home.
Example: Three men share an apartment. Each has
a signed lease and pays 1/3 of the rent. The standard
allowance for three exemptions is $763. Each person
must use a standard allowance of $254 ($763 ÷ 3 = $254)
to compute his credit.
If you are eligible for a special exemption, compute
your standard allowance following this example:
Example: Gertrude and Betty share a home and each
pays one half of the rent. Gertrude is age 59, and Betty
is age 65 and totally and permanently disabled. They file
separate MI-1040CR-7 claims. They must first divide
$607 (the standard allowance for two exemptions) by
two. Gertrude’s allowance is $304 ($607 ÷ 2 = $304).
Because Betty qualifies for a special exemption for being
disabled (as she is entitled to a disabled exemption until
she is eligible for full Social Security at age 66), she may
add the difference between the standard allowance for
three ($763) and the standard allowance for two ($607) to
$304.
$763 - $607 = $156 + $304 = $460
$460 is the standard allowance for Betty.
If you are eligible for a dependent exemption,
compute your standard allowance following this
example:
Example: Marlin and Brody share an apartment.
Each person has signed the lease agreement and pays
one-half of the rent in 2014. The standard allowance for
two exemptions is $607. Each person must use a standard
allowance of $304 ($607 ÷ 2 = $304) to compute the
credit.
Brody is eligible for a dependent exemption for his son,
Logan, so he would then compute his credit as follows:
The standard allowance as computed above is $304. Then
add the difference between the standard allowance for
three ($763) and the standard allowance for two ($607) to
$304.
$763 - $607 = $156 + $304 = $460
$460 is the standard allowance for Brody.
Part-Year Resident or Occupied Homestead Less
Than 12 Months
You must prorate your standard allowance for the
number of days you owned or rented and occupied
your Michigan homestead. For example, you moved to
Michigan on September 1. It is 122 days from September 1
to December 31. Divide 122 by 365 days and multiply
5
the result by your standard allowance. Enter the prorated
standard allowance on line 35 of your claim.
If you are a part-year resident, you must include all
income received from any sources while a Michigan
resident in total household resources.
Alternate Credit
The alternate credit uses heating costs to compute
a home heating credit. Add the amounts you were
billed for heat from November 1, 2013 through
October 31, 2014 (see instructions for line 11 below). If
you buy bulk fuel (oil, coal, wood, or bottled gas), add
your receipts to get your total heating cost. Treasury
may request receipts to verify your heating costs. If
your claim is for less than 12 months or your heating
costs are currently included in your rent, you cannot
claim an alternate credit. You may claim heating costs
on your Michigan homestead only. You may not claim
heating costs on a vacation home or a home outside of
Michigan.
For assistance in determining the credit for which you
may qualify, visit www.michigan.gov/heatingassistance.
Credit Payments
If you are responsible for paying your heating bills, State law
requires Treasury to issue your credit in the form of a State of
Michigan Energy Draft. You can only use the draft to pay heat
bills. Give the draft to your enrolled heat provider who will
apply it to current or future heating bills for your home. If the
amount of your draft is more than you owe, you may request a
refund of the difference by checking the box on line 15. Your
heat provider has 14 days to pay your refund, without interest.
If you receive a draft and your heat provider is not enrolled
in Michigan’s energy assistance program, or if you use bulk
fuel and have already bought your energy supply for the
year, return the draft with a note of explanation to Treasury.
Treasury will review your explanation and, if appropriate,
reissue your credit in the form of a check. If you are notified
of denial, you have the right to a hearing.
If you receive FIP assistance or other DHS benefits or you are
enrolled with DHS for direct payment, the law requires your
credit to be sent directly to your heat provider, who will then
apply it to your account.
If your heat is provided by DTE Energy, Consumers Energy,
or SEMCO Energy Gas, your home heating credit may be sent
directly to your heat provider. (See instructions for line 15 on
page 7.)
Line-by-Line Instructions for MI-1040CR-7
Lines not listed are explained on the form.
Lines 1, 2 and 3: Enter your name(s), current address,
and Social Security number(s). If you are married filing
separately, enter both Social Security numbers but do not
enter your spouse’s name.
Line 4: Enter your two-digit county code from the
County Code Table on page 19.
Line 5: Filing Status. Check the box to identify your
filing status. If you file a joint federal return, you must
file a joint home heating credit. Married couples who
live together all year and file returns as married filing
separately must check the box for joint filing status and
include the total household resources of both spouses.
An individual who became separated from their spouse
during the tax year but is still married as of December 31
and who filed a return as married filing separately should
check the married filing separately box and attach Form
5049. If you filed your federal return as head of household
or qualifying widow(er), you must file the home heating
credit as single.
Same-Sex Couples Filing a Joint Federal Return.
Same-sex couples who file a joint federal income tax
return must continue to file separate income tax returns
for Michigan with each individual using the single filing
status. Michigan has defined marriage in the Michigan
Constitution as a union of one man and one woman.
Individuals who file a joint federal return as a member
of a same-sex couple may be eligible for a home heating
credit as a single filer based on the filer’s income,
exemptions, and heating expenses. Each individual
6
should recalculate their federal adjusted gross income
as if they had filed a single federal return, and be aware
that filing as single may affect the filer’s eligibility for
Michigan tax credits as well. Additional information can
be found on Treasury’s Web site.
Line 6: Residency. Check the box that describes your
Michigan residency for 2014. If you and your spouse had
a different residency status during the year, check a box
for each of you. If you checked box c, enter the dates of
Michigan residency in 2014. You must then prorate your
standard allowance following the instructions on page 5
under “Part-Year Resident or Occupied Homestead Less
Than 12 Months”. If you are a nonresident, you are not
eligible for the home heating credit; do not file this form.
College students and others whose permanent homes are
not in Michigan are not Michigan residents.
Line 7: If your heating costs are included in your rent,
you must check the box on line 7 and complete line 38 of
the form to receive a check. Failure to do so will result in
your credit being issued as a draft. You will then have to
return the draft with a note of explanation to Treasury. It
may take 120 days or more to issue a check to replace the
draft.
Line 11: If you checked the box on line 7 or the
taxpayer died during the tax year and the credit is being
claimed by a personal representative or claimant, skip
this line. If you were not a full-year Michigan resident
and/or were not billed for 12 months’ heating costs
between November 1, 2013 and October 31, 2014, skip
this line. Otherwise, enter the heating costs you were
billed from November 1, 2013 to October 31, 2014 on
your Michigan homestead. Many fuel companies include
the total heating cost for those 12 months on the October
bill. If you cannot find your bills or the information is not
on your October bill, contact your heat provider.
Line 12: If you lived in one of the care facilities listed
on line 12 for all of 2014, you are not eligible for a home
heating credit and should not file this form. If you are
married and your spouse lived in a licensed care facility
while you lived in your homestead, do not check a box.
Also, do not check the “Licensed Home for the Aged”
box if you live in subsidized senior citizen housing. See
“Licensed Care Facilities” on page 5.
Line 13: Exemptions. Enter the number that applies
to you, your spouse, and your dependents as of
December 31, 2014.
a) Personal Exemption. Enter “1” if you are single or
married filing separately; “2” if you are married filing
jointly.
b) Deaf, disabled or blind. You qualify for the deaf
exemption if the primary way you receive messages
is through a sense other than hearing (for example, lip
reading or sign language).
You qualify for the disabled exemption if you are
hemiplegic, paraplegic, quadriplegic, or totally and
permanently disabled. Blind means your better eye
permanently has 20/200 vision or less with corrective
lenses, or your peripheral field of vision is 20 degrees
or less. Totally and permanently disabled means
disabled as defined under Social Security Guidelines 42
USC 416. If you are age 66 or older, you may not claim
an exemption as totally and permanently disabled.
c) Qualified disabled veteran. Taxpayers may claim an
extra exemption if the taxpayer or spouse is a qualified
disabled veteran, or a dependent of the taxpayer is
a qualified disabled veteran. To be eligible for the
additional exemption an individual must be a veteran
of the active military, naval, marine, coast guard, or air
service who received an honorable or general discharge
and has a disability incurred or aggravated in the line of
duty as described in 38 USC 101(16).
g) Include dependents over age 18 who live with you.
Line 14: If you claimed exemptions for children
or dependent adults other than your spouse on
lines 13d through 13g, enter the following information
for each person claimed: name, relationship to you,
Social Security number, and age in years. For children
12 months and under, enter one year. If the SSN is left
blank the credit will be adjusted accordingly. If more
space is needed, complete the Michigan Home Heating
Credit Claim MI-1040CR-7 Supplemental (Form 4976)
on page 15.
Line 15: If your heat is provided by DTE Energy,
Consumers Energy, or SEMCO Energy Gas, your home
heating credit may be sent directly to your heat provider.
If the credit amount exceeds your heat account balance,
check this box to receive a refund from your heat
provider for the overpayment, when eligible.
If you received heating assistance from DHS, a
governmental agency, or a nonprofit organization in
the 12 months prior to the receipt of your home heating
credit, your heat provider will apply your credit to any
outstanding balance still remaining on your account.
If, after nine months, a refund balance still remains on
account with your heat provider, your heat provider will
issue a refund to you. If you have not received heating
assistance in the past 12 months, your heat provider will
first apply your credit to any outstanding balance on your
account and then issue any remaining balance to you
as a refund. The home heating credit is not considered
heating assistance for determining when you may receive
a refund.
Heat Provider Contact Information
Consumers Energy.....................................1-800-477-5050
www.consumersenergy.com
DTE Energy...............................................1-800-477-4747
www.dteenergy.com
SEMCO Energy Gas..................................1-800-624-2019
www.semcoenergygas.com
Total Household Resources
You must complete lines 16 through 34 on MI‑1040CR‑7
even if you filed a homestead property tax credit claim
(MI-1040CR or MI-1040CR-2). Include all taxable and
non-taxable income you and your spouse received in
2014. If your family lived in Michigan and one spouse
earned wages outside Michigan, include the income
earned both in and out-of-state in your total household
resources.
Line 16: Enter all compensation received as an employee.
Include strike pay, supplemental unemployment benefits
(SUB pay), sick pay, or long-term disability benefits,
including income protection insurance and any other
amounts reported to you on Form W-2.
Line 17: Do not include business dividend and interest
income reported as a distributable share on Form K-1.
See line 18 instructions.
Line 18: Add the amounts from:
• U.S. Schedule C (Profit or Loss from Business)
• Part II (Ordinary Gains and Losses) of the
U.S. Form 4797
• Part II (Income or Loss from Partnerships and
S Corporations) and Part III (Income or Loss from
Estates and Trusts) of the U.S. Schedule E
• U.S. Schedule F (Profit or Loss from Farming)
• Include income items reported as a distributive share.
If the total is negative enter “0.” Include amounts
from sources outside Michigan. Attach the above
federal schedules to your claim.
Line 19: Add the amounts from:
• Part I (Income or Loss from Rental Real Estate and
Royalties) of the U.S. Schedule E
7
•
Part IV (Income or Loss from Real Estate Mortgage
Investment Conduits (REMIC)) of the U.S. Schedule E
(rents, royalties)
• Part V (Summary) (Net farm rental income or (loss))
of the U.S. Schedule E.
If the total is negative enter “0.” Include amounts
from sources outside Michigan. Attach the above
federal schedules to your claim.
Line 20: Enter all annuity, retirement pension, and
individual retirement account (IRA) benefits. This should
be the taxable amount shown on your U.S. Form 1099-R.
If no taxable amount is shown on your U.S. Form 1099-R,
use the amount required to be included in AGI. Enter
zero if all of your distribution is from your contributions
made with income previously included in AGI. Include
reimbursement payments such as an increase in a
pension to pay for Medicare charges. Also include the
total amount of any lump sum distribution including
amounts reported on your U.S. Form 4972. Do not
include recoveries of after-tax contributions or amounts
rolled over into another plan (amounts rolled over into a
Roth IRA must be included to the extent included in AGI).
You must include any part of a distribution from a Roth
IRA that exceeds your total contributions to the Roth
IRA regardless of whether this amount is included in
AGI. Assume that all contributions to the Roth IRA are
withdrawn first. NOTE: Losses from Roth IRAs cannot
be deducted.
Line 21: Enter net capital gains and losses. This is the
total of short-term and long-term gains less short-term
and long-term losses from your U.S. Schedule D (losses
cannot exceed $3,000 if single or married filing jointly
or $1,500 if married filing separately). Include gains
realized on the sale of your residence whether or not
these gains are exempt from federal income tax.
Line 22: Enter alimony received and other taxable
income. Describe other taxable income. This includes:
awards, prizes, lottery, bingo, and other gambling
winnings over $300; farmland preservation tax credits
if not included in net farm income on line 18; and
forgiveness of debt to the extent included in federal AGI
(e.g., mortgage foreclosure).
Line 23: Enter your Social Security, Supplemental
Security Income (SSI), and/or Railroad Retirement
benefits. Include death benefits and amounts received
for minor children or other dependent adults who live
with you. Report the amount actually received. Medicare
premiums reported on your Social Security or Railroad
Retirement statement should be deducted.
Line 24: Enter child support and all payments received
as a foster parent. NOTE: If you received a 2014
Custodial Party (CP) End of Year Statement (FEN-851)
showing child support payments paid to the Friend of the
Court, enter the child support portion here and attach a
copy of the statement. Also see line 29 instructions.
Line 25: Enter all unemployment compensation
received during 2014.
8
Line 26: Enter the value over $300 in gifts of cash
or merchandise received, or expenses paid on your
behalf (rent, taxes, utilities, food, medical care, etc.) by
parents, relatives, or friends. This includes the amount
of financial support you received if you are claimed as
a dependent on someone else’s return. Do not include
government payments made directly to third parties
such as an educational institution or subsidized housing
project.
Line 27: Enter other nontaxable income. This includes:
• N
ongovernmental scholarship, stipend or grant
payments paid directly to an educational institution
• Compensation for damages to character or for
personal injury or sickness
• Adoption subsidies
• An inheritance (except an inheritance from your
spouse)
• Proceeds of a life insurance policy paid on the death of
the insured (except benefits from a policy on your
spouse)
• Death benefits paid by or on behalf of an employer
• Minister’s housing allowance
• Forgiveness of debt to the extent not included in
federal AGI (e.g., mortgage foreclosure)
• Reimbursement from dependent care and/or medical
care spending accounts.
For more information, see “Total Household Resources”
on page 4.
Line 28: Enter workers’ compensation, serviceconnected disability compensation and pension benefits
from the Veterans Administration. Veterans receiving
retirement benefits should enter the benefits on line 20.
Line 29: Enter the total payments made to your
household by DHS and all other public assistance
payments. Your 2014 Client Annual Statement
(DHS-1241) mailed by DHS in January 2015 will show
your total DHS payments. Your statement(s) may include
the following: FIP assistance, State Disability Assistance
(SDA), Refugee Assistance, Repatriate Assistance, and
vendor payments for shelter, heat, and utilities.
NOTE: If you received a Form FEN-851, subtract the
amount of child support payments entered on line 24
from the total DHS payments and enter the difference
here.
Line 31: Enter
total
adjustments
from
your
U.S. Form 1040 or U.S. Form 1040A. Describe
adjustments to income. These adjustments reduce total
household resources and include some of the following:
• Payments to IRAs, SEP, SIMPLE, or qualified plans
• Student loan interest deduction
• Moving expenses into or within Michigan can be
included in “Other Adjustments” to reduce total
household resources. Moving expenses when moving
•
•
•
•
•
•
•
•
out of Michigan cannot be included in “Other
Adjustments” to reduce total household resources
Deduction for self-employment tax
Self-employed health insurance deduction
Penalty on early withdrawal of savings
Alimony paid
Jury duty pay you gave to your employer
Archer Medical Savings Account (MSA) deduction
Any other adjustments to gross income included on
your 2014 U.S. Form 1040
Health Savings Account (HSA) deduction.
Line 32: Enter health insurance premiums, Health
Maintenance Organization (HMO) premiums, or other
insurance premiums you paid for yourself and your
family. Include the following premiums:
• Medical insurance
• Dental insurance
• Vision insurance
• Prescription drug plan
• Automobile insurance (medical care portion only).
Do not include any insurance premiums deducted on
line 23 or line 31, amounts paid for income protection
insurance (long-term disability), long‑term care
insurance, or amounts paid by an employer with pre‑tax
payroll contributions.
You must reduce an insurance premium by the federal
premium tax credit received under the Patient Protection
and Affordable Care Act. Use the 2014 U.S. Premium
Tax Credit Form 8962 to calculate the net insurance
premium. The annual total insurance premium (line 11A
of U.S. Form 8962 or the sum of lines 12A through 23A
of U.S. Form 8962) less the total premium tax credit (line
24 of U.S. Form 8962) may be claimed.
Your Credit
There are two ways to compute a home heating credit:
the standard credit and the alternate credit. If you are
eligible to claim either credit, figure your credit both
ways and claim the larger amount.
Li ne s 35 th roug h 37: St and ard cre d it . Se e Table A on page 19. Find the number of exemptions
you are allowed and the corresponding income ceiling
amount. If your total household resources are less
than this amount, you are eligible to use this method to
calculate your credit.
Example: You and your spouse have three dependent
children, so you are allowed five exemptions. Your total
household resources are $15,000. This is less than the
$30,728 income ceiling for five exemptions. Complete
the form using the standard credit method.
If you are a part-year resident or occupied your
homestead less than 12 months, see page 5 to prorate
your standard allowance.
Line 38: If your heat is included in your rent at the
time you file this claim, you must reduce your computed
standard credit by 50 percent (0.50). Multiply line 37 by
0.50. Enter this amount on lines 38 and 43.
Lines 39 through 42: Alternate credit. If your claim
is for less than 12 months or your heat cost is included
with your rent, you are not eligible to use this method. If
your total household resources is less than the maximum
income for your number of Michigan exemptions, you
may claim this credit. See Table B on page 19.
Example: You are single, have one dependent child and
your 70-year old father is also your dependent. You are
allowed three exemptions. Your annual heat costs were
$1,100 and your total household resources are $5,500.
This is less than $23,222 the maximum income for three
exemptions.
Line 43: If you completed line 38, you must enter that
amount here. Otherwise, enter the larger amount from
line 37 or line 42.
Line 44: Multiply the amount on line 43 by
50 percent (0.50) (the percentage of federal home heating
assistance funds available for this year) and enter here.
This is the amount of your 2014 home heating credit.
9
10
TABLE A
2014 Home Heating Credit Standard Allowance
Your Exemptions
(from line 13h)
0 or 1
2
3
4
5
6
Standard
Allowance
$450
$607
$763
$919
$1,076
$1,232
+ $156 for each
exemption over 6
Income
Ceiling
$12,842
$17,329
$21,786
$26,243
$30,728
$35,186
+ $4,457 for each
exemption over 6
TABLE B
Exemptions and Maximum Income for the Alternate Credit Computation
Maximum
Income
$13,727
$18,472
$23,222
$24,018
Your Exemptions
(from line 13h)
0 or 1
2
3
4 or more
COUNTY CODE TABLE
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
Alcona
Alger
Allegan
Alpena
Antrim
Arenac
Baraga
Barry
Bay
Benzie
Berrien
Branch
Calhoun
Cass
Charlevoix
Cheboygan
Chippewa
Clare
Clinton
Crawford
Delta
22
23
24
25
26
27
28
29
30
31
32 33
34
35
36
37
38
39
40
41
42
Dickinson
Eaton
Emmet
Genesee
Gladwin
Gogebic
Grand Traverse
Gratiot
Hillsdale
Houghton
Huron
Ingham
Ionia
Iosco
Iron
Isabella
Jackson
Kalamazoo
Kalkaska
Kent
Keweenaw
43 44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60 61
62
63
Lake
Lapeer
Leelanau
Lenawee
Livingston
Luce
Mackinac
Macomb
Manistee
Marquette
Mason
Mecosta
Menominee
Midland
Missaukee
Monroe
Montcalm
Montmorency
Muskegon
Newaygo
Oakland
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
Oceana
Ogemaw
Ontonagon
Osceola
Oscoda
Otsego
Ottawa
Presque Isle
Roscommon
Saginaw
St. Clair
St. Joseph
Sanilac
Schoolcraft
Shiawassee
Tuscola
Van Buren
Washtenaw
Wayne
Wexford
19
Michigan Department of Treasury
Lansing, MI 48922
PRSRT STD
U.S. POSTAGE PAID
Mich. Dept. of Treasury
Index
Page
Alternate Credit.................................................6
Claiming a Credit..............................................3
Computing a Credit...........................................9
Credit Payments................................................6
Deceased Claimants..........................................4
Direct Deposit of Refund............................1, 17
Farmers, Special Provisions..............................5
General Information..........................................3
How to Contact Treasury..................................2
Important Information for All Claimants..........3
Licensed Care Facilities....................................5
Line-by-Line Instructions.................................6
Part-Year Resident Owner’s or Renter’s
Standard Allowance......................................5
Shared Housing Standard Allowance................5
Standard Credit.................................................5
Total Household Resources...........................4, 7
Treasury Offices..............................................20
Forms
3174, Direct Deposit of Refund.......................17
MI-1040CR-7, Home Heating Credit Claim .11
4976, MI-1040 CR-7 Supplemental................15
Help With Child Care Costs
If your family income is at or below levels established by the Michigan
Department of Education, you may be eligible for help with child care
costs. For example, a family of three with an income of less than
$23,880 may qualify for partial payment of child care costs. Contact
any local Department of Human Services office or your Great Start to
Quality Resource Center for assistance in the application process. For
more details about the Child Development and Care program, visit
www.michigan.gov/childcare. To find a licensed or registered child care
provider in your area, visit www.greatstarttoquality.org.
Winter Protection Plan
If you are a low income or senior citizen customer of a natural gas
or electric utility company, rural electric cooperative, regulated by
the Michigan Public Service Commission, or an alternative energy
supplier and would like to participate in the Winter Protection Plan, a
payment deferral program that provides winter shut off protection from
November 1 to March 31, contact your local energy supplier or the
Michigan Public Service Commission at 1-800-292-9555 for details.
Low Interest Home Improvement Loans
Energy bills too high? The Michigan State Housing Development
Authority (MSHDA) offers low interest home improvement loans
(4 percent to 8 percent) to qualified homeowners. You can borrow up
to $25,000 without any equity, and add insulation, replace your furnace,
install energy efficient windows, and pay for other eligible energy
improvements. For more details, visit www.michigan.gov/mshda, then
click on the Home Improvement link. You may also call (517) 373-8017.
Affordable Rental Housing
Looking for affordable rental housing?
Go to www.MichiganHousingLocator.com. It is the best source
for affordable rental housing across the State. It’s a free resource for
property owners and renters with over 240,000 unit listings.
Treasury Offices
Commonly used forms are available at Treasury offices listed below. Treasury office staff do not prepare tax returns.
DETROIT
Cadillac Place, Suite L-380
3060 W. Grand Blvd.
DIMONDALE *
7285 Parsons Drive
(*NOT a mailing address)
20
ESCANABA
State Office Building, 1st Floor
305 Ludington Street
(open 8 - 12 only)
FLINT
State Office Building, 7th Floor
125 E. Union Street
GRAND RAPIDS
State Office Building, 2nd Floor
350 Ottawa Avenue, NW - Unit 17
STERLING HEIGHTS
41300 Dequindre Road, Suite 200
TRAVERSE CITY
701 S. Elmwood Avenue, 4th Floor
(open 8 - 12 only)
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