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New Developments for Tax Year 2024

New Developments for Tax Year 2024

Tax Year Updates

General

Tax Rate 4.25%
Personal Exemption Amount $5,600
Special Exemption
Note: Totally and permanently disabled may not be claimed if the taxpayer was age 66 by April 30, 2024		 $3,300
Qualified Disabled Veteran Deduction $500
Exemption for Number of Certificates of Stillbirth from MDHHS $5,600

2024 Retirement & Pension Estimator

Senior Interest, Dividend and Capital Gain

Filing Type Limit
Single Filer
 $14,274
Jointly Filed $28,548

2024 Retirement and Pension Subtraction

Filing Type Private Retirement and Pension Limit 1 Phase-In Limit 2 Michigan Standard Deduction 3
Single Filer $64,040 $32,020 $20,000
Joint Filer $128,080 $64,040 $40,000

1 Retirees born before 1946 and Qualified Safety Officers, or a qualified surviving spouse
2 Retirees born after 1945 through 1962 or a qualified surviving spouse
3 Individuals born after 1946 through January 1, 1958

Homestead Property Tax Credit

Maximum Taxable Value $160,700
Total Household Resources (THR) Limit $69,701
Phase-out begins when Total Household Resources exceeds $60,700
Credit Limit $1,800

Note: Totally and permanently disabled may not be claimed if claimant was age 66 by April 30, 2024.

 

TOTAL HOUSEHOLD RESOURCES (THR) PERCENTAGE
$60,700 or less 100% (1.00)
$60,701 - $61,700 90% (0.90)
$61,701 - $62,700 80% (0.80)
$62,701 - $63,700 70% (0.70)
$63,701 - $64,700 60% (0.60)
$64,701 - $65,700 50% (0.50)
$65,701 - $66,700 40% (0.40)
$66,701 - $67,700 30% (0.30)
$67,701 - $68,700 20% (0.20)
$68,701 - $69,700 10% (0.10)
$69,701 - above 0% (0.00)

Home Heating Credit

Maximum Heating Costs = $3,606
Note: Totally and permanently disabled may not be claimed if claimant was age 66 by April 30, 2024.

 

Home Heating Credit Tables

Standard Allowance
Exemptions Standard Allowance Income Ceiling
0 or 1 $581 $16,586
2 $788 $22,500
3 $995 $28,414
4 $1,202 $34,328
5 $1,409 $40,243
6 $1,616 $46,157
>6 +$208 for each exemption over 6 +$5,943 for each exemption over 6
Alternate Credit Computation
Exemptions Income Ceiling
0 or 1 $18,111
2 $24,371
3 $30,636
4 or more $32,782

New Tax Resources and Web Content

New and Improved Collections eService

The Collections eService provides the ability to communicate and resolve Treasury Collections debts electronically. You can make payments, request installment agreements, view assessment information and balances, view Treasury-issued letters, and ask questions. For more information and support, visit the Collection eService Help Center.

Taxes Website Redesigns

Treasury has been busy this year working piece-by-piece to make our website more navigable and useful for you. Check out our recently updated webpages to see what this change looks like:

Annual Instruction Booklet Mailings

If you filed a paper return last tax season (tax year 2023) the following forms were mailed to you:

  • MI-1040 (Michigan Individual Income Tax Return)
  • MI-1040CR-2 (Homestead Property Tax Credit Claim for Veterans and Blind People)
  • MI-1040CR-5 (Farmland Preservation Tax Credit)
  • MI-1040CR-7 (Home Heating Credit Claim)

Taxpayers who e-filed or had a tax preparer complete their forms will not be mailed any booklets. You can find tax year 2024 forms and instructions on Treasury’s Taxes website or in the following places:

  • most public libraries.
  • post offices in Northern Michigan.
  • Michigan Department of Health and Human Services (MDHHS) county offices.

You can call the Treasury Individual Income Tax Contact Center to request forms be mailed to you, however, this service is not available until mid-February.

Taxpayer Rights & Responsibilities

Treasury Offset Program (TOP)

Treasury has entered into an agreement with the IRS to intercept, or offset, federal tax refunds and payments for Michigan Department of Treasury income tax debts. For more information, visit Treasury Offset Program.

Property Tax Credits / Refunds

Michigan homestead property tax credit and state refunds from the Michigan Department of Treasury received in 2024 may be taxable on your 2024 U.S. 1040. If you have questions about the taxability of your property tax credit or state refunds for federal tax purposes, call the IRS at 800-829-1040.

Statute of Limitations for Prior Year Returns and Credits

A taxpayer has 4 years from the due date of the original return to file and claim a refund with the Michigan Department of Treasury. For example, you must file the 2020 Michigan Individual Income Tax Return (MI-1040/MI-1040X-12) and/or a Homestead Property Tax Credit (MI-1040CR/MI-1040CR-2) on or before July 15, 2025.

Contacting Treasury

Taxpayers and Representatives with Power of Attorney (Form 151) Authorization:

Follow the instructions on Prepare to Contact Treasury

Tax Preparers with Check-the-Box Authorization:

Check-the-Box Authorization is applicable only to the individual named as the preparer on the tax return and does not extend to others in the preparer’s office or firm. This authorization does not take the place of a form designating power of attorney. Check-the-box authorization on a tax return authorizes Treasury to communicate with the tax preparer concerning the contents of the return they prepared. In addition, it authorizes the tax preparer to:  

  • provide Treasury with information missing from the return.
  • call Treasury to obtain information about the status of a return submitted for processing, the status of a refund, and payments related to the return.
  • request copies of notices related to the return.
  • respond to notices related to matters such as math errors, return preparation, and any adjustments made to the return.

To obtain information about an account from Treasury, you will need the following information from a taxpayer's return:

  1. tax preparer’s name
  2. tax preparer’s PTIN, FEIN, or SSN
  3. tax preparer’s and/or firm address