Home Heating Credit Information
Filing your Home Heating Credit Claim MI-1040CR-7 can be done by mail or digitally. If you are needed to submit a Michigan Individual Income Tax Return MI-1040, submit a completed MI-1040CR-7 with your Individual Income Tax Return. If you are not needed to file an MI-1040, then submit a completed MI-1040CR-7 by itself.
If you are unable to print the Home Heating Credit Form, MI-1040CR-7, it is available at your regional library, MDHHS office, neighborhood agencies or the Michigan Department of Treasury. Submit the form by mail or digitally.
Frequently Used Home Heating Credits Forms and Instructions
MI-1040CR-7.
MI-1040CR-7 Instructions.
Form 4976 MI-1040CR-7 Supplemental.
Form 3174 Direct Deposit of Refund.
Form 5049 Worksheet for Married, Filing Separately and Divorced or Separated Claimants
What is the Home Heating Credit?
The Home Heating Credit is a way the State of Michigan assists low-income households pay a few of their heating expenses if they are a qualified Michigan house owners or occupants. You must complete the Home Heating Credit Claim MI-1040CR-7 to see if you certify for the credit. The deadline for sending this form is September 30, 2025.
Considered that each taxpayer has distinct scenarios that determine their eligibility for the credit, the Michigan Department of Treasury motivates you to review the details below and/or call a tax expert if you have additional questions.
The credit is based upon income (overall household resources), family size, and a contrast between either your standard credit allowance or your actual heating expenses.
Who receives a Home Heating Credit Claim?
You may get approved for a home heating credit if all of the following use:
- You own or were contracted to pay lease and occupied a Michigan homestead.
- You were NOT a full-time trainee who was declared as a depending on another person's return.
- You did NOT live in college or university operated housing for the whole year.
- You did NOT live in a licensed care center for the whole year.
- Your earnings was within the limitations in Table A and Table B
What if I do not qualify or need additional assistance?
If you do not qualify for the home heating credit, you may be qualified for other help through the Michigan Department of Health and Human Services. The Low Income Home Energy Assistance Program (LIHEAP) aims to money programs to assist low-income families with energy requirements, such as high energy expenses, shut down notifications, and home energy repairs.
Find MDHHS Emergency Relief
Why is the amount of my credit various from what I anticipated?
Before calling or writing, we recommend you utilize the Home Heating Credit Checklist.
How do I Check the Status of my Home Heating Credit Claim?
You might check the status of your home heating credit by utilizing the Individual Income Tax eService.
There are two options to access your account information: Account Services or Guest Services.
Account Services
Select "My Return Status" once you have visited.
When you produce a MiLogin account, you are only needed to respond to the verification concerns one time for each tax year. If you have formerly developed a MiLogin account, you might utilize the exact same username and password for numerous state agency gain access to. (Treasury, Secretary of State, Unemployment/UIA)
Guest Services
Select "Where's My Refund" and you will be asked to go into the following details for security factors:
- Primary filer's Social Security number.
- Primary filer's surname.
- Tax year.
- Filing status.
- Adjusted gross earnings (AGI)/ Total Household Resources (THR) - If your AGI is an unfavorable number, go into "-" after the number. Example: 1045-
Payment Process
You pay your heating bills
If you are responsible for paying your heating bills, State law needs the Michigan Department of Treasury to issue your credit in the kind of a State of Michigan Energy Draft. You can just use the draft to pay heat costs. Give the draft to your enrolled heat company who will apply it to current or future heating bills for your home. If the quantity of your draft is more than you owe, you might ask for a refund of the difference by examining the box on line 18.
Your heat is consisted of in your lease
If you receive a draft and your heat is consisted of in your rent, or your heat service remains in someone else's name, return the draft with a note of explanation and a copy of your lease arrangement( s) and/or residential or commercial property tax declarations to: Michigan Department of Treasury, P O Box 30757, Lansing, MI 48909. We will evaluate your explanation and, if proper, reissue your credit in the kind of a check. If you are alerted of a change or rejection and you disagree, you should submit your appeal in writing.
You get family self-reliance program support or MDHHS advantages
If you receive FIP support or other MDHHS benefits or you are registered with MDHHS for direct payment, the law needs your credit to be sent directly to your heat company, who will then use it to your account.
Common Mistakes to Avoid
Mistakes might postpone your credit payment. Some typical errors are:
- Filing after the deadline of September 30th.
- Failure to report overall family resources from all sources including gifts of cash/expenses paid on your behalf and Social Security benefits received on behalf of a dependent.
- Entering month-to-month amount of earnings (numerous types) rather of annual amount in total home resources.
- Incorrect or missing Social Security number( s) for eligible filers and/or dependents.
- Entering inaccurate heat amount.
- Failure to mark box 10 if your heating costs are presently consisted of in your lease.
- Entering figures on the incorrect lines or not entering figures on necessary lines.
- Illegible writing.
- Using a name and address label with inaccurate info.
- Computation errors (addition, subtraction, etc)
Standard Credit
The basic credit computation utilizes standard allowances established by law. Use Table A to find the standard allowance for the number of exemptions you claimed. If your heat expenses are presently included in your lease, you should check the box on line 10 of the Home Heating Credit Claim.
You may be qualified to use the Standard technique if:
- You lived in Michigan for any amount of time in the year of claim. You will need to prorate the standard allowance for the time you resided in Michigan if it is less than 12 months.
- You declared heat expenses for your Michigan home, not a villa or a commercial account.
- Your overall home resources level was within the limits for this credit discovered in Table A.
Alternate Credit
The alternate credit uses heating expenses to compute a home heating credit. Add the amounts you were billed for heat from November 1, 2023 through October 31, 2024. If you bought bulk fuel (oil, coal, wood, or bottled gas), include your receipts to get your total heating cost. Treasury might request invoices to verify your heating costs. You might declare heating costs on your Michigan homestead only. You may not declare heating expenses on a getaway home or a home exterior of Michigan.
You are NOT qualified to calculate the credit using the Alternate technique if:
- You were not a Michigan homeowner for a full 12 months for the year of the claim.
- Your heating expenses were consisted of in your rent at the time you submitted your claim.
- You declared heat costs for your villa or a business account.
- You were a claimant filing a departed taxpayer's home heating credit claim in the year they passed.
- Your overall family resources level was above the limits for this credit discovered in Table B.
What is a "Homestead"?
Your homestead is the location where you have your permanent home. It is the place to which you plan to return whenever you go away. You should be the owner and occupant or be contracted to pay rent and inhabit the home. You can only have one homestead at a time. Cottages, second homes and residential or commercial property you own and rent/lease to others does not qualify as a homestead.
Note: College or university ran housing does not certify as a homestead. This includes dorms, home halls and/or apartment or condos.
What are Total Household Resources?
Total Household Resources (THR) are the overall earnings (taxable and nontaxable) of both spouses or of a bachelor keeping a home. Losses from business activity might not be used to minimize overall home resources. For a listing of earnings sources to consist of in total home resources, view Income and Deductible Items.
Note: Gifts of money and all payments made on your behalf needs to be included in THR.
What Are Qualified Health Insurance Premiums?
Some certified paid health insurance coverage premiums may be deducted from total family resources.
View Qualified Medical Insurance Premiums
Special Situations
1. Shared Housing - If you share a home but are not the owner or you do not have an agreement to pay lease, you can not declare a credit.
When two or more single adults share a home, each may declare a credit if each has contracted to pay lease or owns a share of the home. Each should submit a home heating credit based upon his/her overall family resources and his or her share of the standard allowance. First, identify the standard allowance, from Table A, by adding the personal exemptions of all the plaintiffs sharing a home. Divide this standard allowance by the variety of claimants in the home.
Example: Three guys share a house. Each has a signed lease and pays 1/3 of the lease. The basic allowance for 3 exemptions is $958. Each individual must use a standard allowance of $319 ($ 958 ÷ 3 = $319) to calculate his credit.
Example, if you are qualified for a special exemption or a reliant exemption: Catherine and Betty share a home and each pay one half of the lease. Catherine is age 59 and Betty is age 65 and totally and completely handicapped. They file different MI-1040CR-7 claims. They should initially divide $760 (the standard allowance for 2 exemptions) by two. Catherine's allowance is $380 ($ 760 ÷ 2 = $380).
Betty's allowance is likewise $380, however, she certifies for an unique exemption for being disabled (as she is entitled to a disabled exemption up until she is qualified for complete Social Security at age 66 and 4 months). She may likewise add an extra $198 to her standard allowance, since the distinction in between the standard allowance for 3 exemptions ($ 958) and the basic allowance for 2 exemptions ($ 760) is $198.
$ 958 - $760 = $198 + $380 = $578
The basic allowance Betty is eligible to claim is $578.
2. Part-Year Resident or Occupied Homestead Less Than 12 Months - You should prorate your standard allowance for the number of days you owned or rented and inhabited your Michigan homestead. For example, you transferred to Michigan on September 1. It is 122 days from September 1 to December 31. Divide 122 by 365 days and multiply the outcome by your standard allowance. Enter the prorated basic allowance on line 38 of your claim. If you are a part-year homeowner, you need to consist of all income received from any sources while a Michigan resident in total family resources.
3. Adult Foster Care, Licensed Home for the Aged, Assisted Living Home, and Substance Abuse Treatment Centers - If you live in a licensed care facility, usually you do not qualify for the home heating credit. Licensed care centers consist of adult foster care homes, certified homes for the aged, nursing homes, and drug abuse treatment centers. Subsidized senior person apartment or condos are not certified care facilities. If you reside in a subsidized senior person apartment, you may request a credit.
If you lived in a certified care facility only part of the year, you might qualify for a partial credit for the duration you lived outside the center. (See instructions on page 5 of the MI-1040CR-7 brochure.) If your spouse lives in a licensed care center and you reside in the household homestead, you might still get approved for a credit. File a joint credit claim and do not inspect a box on line 15.
If you are single and maintain a homestead (that is not leased to somebody else) while residing in an adult foster care, certified home for the aged, nursing home or drug abuse treatment center, you may claim a credit for the heating costs paid on your homestead. You should provide evidence of heating costs paid on your homestead.
4. Deceased Claimants -If the taxpayer died throughout 2023, the personal may declare the basic heating credit however may not claim the alternate heating credit. If your partner passed away in 2023, use the same variety of exemptions you would have used had your partner lived all year.
The making it through spouse may submit a joint claim for 2023. Write your name and the deceased's name and both Social Security numbers on the MI-1040CR-7. Write "DECD" after the deceased's name. You should report the deceased's income. Sign the claim on the deceased's signature line, write "Filing as surviving spouse." Enter the deceased's date of death in the "Deceased Taxpayers" box on the bottom of page 2 of the form.
If filing as a personal representative or claimant for a single departed taxpayer or when both taxpayers are deceased:
- You need to attach a U.S. Form 1310 or Michigan Claim for Refund Due a Deceased Taxpayer (MI-1310) and a death certificate
- Enter the name of the departed person( s) in the Filer and Spouse name fields with "DECD" next to the name( s) and the agent's or complaintant's name, title and address in the home address field
- Use the deceased's Social Security number on the kind
- Enter date( s) of death in the designated boxes on bottom of page 2
- You should prorate for the variety of days from January 1 up until the date of death, see page 5 for prorating credit.
Other Helpful Information
Homestead Residential Or Commercial Property Tax Credit - This credit is a way the State of Michigan provides relief to certified Michigan property owners or tenants. Homestead Residential Or Commercial Property Tax Credit Information
How to Choose a Tax Preparer Who's Right for You - Need assistance in completing your kinds? You can hire an expert to prepare your taxes or you might receive complimentary (or low charge) tax preparation services.
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