The following information is new for 2022 Michigan state tax returns.
Homestead Property Tax
- Maximum taxable increased to $143,000
- Total household resources limit increased to $63,000
- Phase-out begins when household resources exceed $54,000
- The maximum homestead property tax credit increases to $1,600
Tier 3 Michigan Standard Deduction
You may be eligible for a deduction of up to $20,000 if single or $40,000 if married filing jointly if the older of you (or your spouse for joint returns) were born January 1, 1953 through January 1, 1956, and you reached the age of 67 on or before December 31, 2022.
Retirement benefit subtraction expanded
If the older of you or your spouse (if married filing jointly) was born after January 1, 1956 but before January 2, 1961, have reached age 62, and receive retirement benefits from employment with a governmental agency that was exempt from Social Security, you may be eligible for a retirement and pension deduction. (MI-1040)
Michigan First-Time Home Buyer Savings Program
"The Michigan First-Time Home Buyer Savings Program deduction may be claimed for contributions made in tax years 2022 through 2026 to a first-time home buyer savings account less qualified withdrawals made from the same account up to a total deduction of $5,000 on a single return or $10,000 for a jointly filed return, to the extent not deducted in determining adjusted gross income (AGI)."
For more information, please click here.