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Level 1
March 25, 2021

Michigan MI1040CR Unemployment Income

  • March 25, 2021
  • 1 reply
  • 4 views

Regarding the $10,200 unemployment tax exclusion under the American Rescue Plan....

Since Michigan works off the federal AGI, the tax benefit follows through to the MI1040 tax return.

My question is about the MI1040CR for property tax refunds....

Are we to record our full unemployment received or the amount after the $10,200 credit has been applied?

 

 

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    1 reply

    Level 3
    March 27, 2021

    Household Resources includes the total amount of Unemployment (unreduced by the exclusion). The homestead property credit is based on the higher HR amount, which reduces the credit accordingly The software should do this automatically.