Claiming property taxes 2019 - in Michigan?
My wife and I were told by our tax person that we couldn't claim our home of 2 years due to the fact that we made over $50,000. This doesn't sound right but I'm not finding anything on Google about this. Also, I know little about the rules of filing. Does this sound right?
- Wayne ZLv 74 weeks agoFavorite Answer
Are you talking about the tax deduction for property taxes or the Michigan Homestead Property Tax Credit? They are two different things.
1) To get the Michigan Homestead Property Tax Credit, your household income must be under $60,000.
2) Property taxes are an Itemized Deduction on the Federal 1040. However, the new tax law raised the Standard Deduction to $24,000. It is $24,400 for 2019. Your total Itemized deductions must exceed this amount for you to benefit. Over 90% of taxpayers do not see a tax benefit from itemizing.
So, it is quite possible that you received no tax benefit (state or federal) from your local property taxes. This is quite common.
- mercedesLv 74 weeks ago
The IRS standard deduction for a married couple is probably more than you would get if you itemized so you can claim taxes and mortgage interest but probably shouldn't.
- SlickterpLv 74 weeks ago
May be true on a MI state return, certainly not true on federal.