Question

How/where to report shared household payments?

Forum|Forum|5 years ago
March 31, 2021
1 reply
0 views

I lived in a shared house in 2020 and payed the rent where my roommates then payed me. According to the MI - Homestead Property Tax webpage, "If only one individual owns the home or is contracted to pay rent, only that individual may file a homestead property tax credit. The individual claiming the credit must include any gifts of cash or expenses paid on his/her behalf. This includes contributions from others living in the home used to pay household expenses (rent, taxes, utilities, etc.)." Where do I include these roommate contributions?

T

ToddL99

Add your roommates contributions to the Total HouseHold Resources (Line 24. Gifts received or expense paid on your behalf) of form 2020 Michigan Homestead Property Tax Credit Claim MI-1040CR

From MI Homestead Property Tax Credit Information:

Total Household Resources (THR) are the total income (taxable and nontaxable) of both spouses or of a single person maintaining a household. Losses from business activity may not be used to reduce total household resources. For a listing of income sources to include in total household resources, view Income and Deductible Items.

Note: Gifts of cash and all payments made on your behalf must be included in THR.

Shared Housing - If two or more individuals share ownership and occupy the homestead or are contracted to pay rent and occupy the rental property, each may file a homestead property tax credit. The claim must be based only on his/her prorated share of the taxable value and property taxes or rent paid and his/her own total household resources. Property taxes levied or monthly rent must be divided equally between each individual. Any gifts of cash or expenses paid on your behalf must be included in total household resources.

If only one individual owns the home or is contracted to pay rent, only that individual may file a homestead property tax credit. The individual claiming the credit must include any gifts of cash or expenses paid on his/her behalf. This includes contributions from others living in the home used to pay household expenses (rent, taxes, utilities, etc.).