Homestead Property Tax Credit
Tax expert John Catoni, of the Dailey Law Firm explains to a caller the ins and outs of the Homestead Property Tax Credit. Even if you filed and missed it, you can amend now and claim the credit.
Male Speaker 1: We’ve got James right now from Redford Township calling in. James, you are on the Law Show, what can we do for you?
Male Speaker 2: Hi, you’re there?
Male Speaker 1: Yeah, go ahead James.
Male Speaker 2: Okay, I’ve got a homestead property and tax credit claim that I just filled out. I just found out about I already sent my income tax papers in earlier and I found out about this the other day from neighbors, so I said to fill the paper out and send it to him. The homestead property tax credit and do they put me separately or I’m not going to have a problem?
Male Speaker 1: Did you file your State of Michigan taxes already?
Male Speaker 2: Yeah, I sent that in earlier I didn’t know about this, [inaudible] [0:00:39]?
Male Speaker 1: What you’re going to need to do is amend your Michigan taxes to include that homestead property tax credit. And John for the listeners benefit will you tell him what is the homestead exemption property tax credit.
Male Speaker 3: Well, there is two types of things that you can use in getting this credit. One is if you rent, you can use your rent as part of your homestead property credit and also if you’re paying property taxes, its based on how much of your property taxes are and the amount of your income and your household income which may include some things that are not necessarily in your federal adjusted gross income. So it can get a little complicated. James if I were you I’d contact somebody to do this amendment for you to make sure you get this credit.
Male Speaker 2: And how far back will they let you go, how many years, this is for State of Michigan this isn’t for federal?
Male Speaker 1: The State of Michigan, they will allow you 3 years to amend the tax return. So listen to that listeners you’ve got 3 years so if you make a mistake and John isn’t it true that it doesn’t just apply to the homestead exemption, if there is something else that you missed how far back where you can go where you can file an amendment to try and get that benefit.
Male Speaker 3: To get a refund where you’re going to get additional money you have 3 years from the due date of the return. Now if you have an issue where you owe money now there has been times and I’ve gone back 10 years where my clients have actually owed less to the IRS or the State of Michigan. If you think there is a problem with the previous year tax return by all means get it checked out.