During tax season, the Michigan Department of Treasury is reminding older Michiganders of important tax credits and subtractions they can use to lower their tax bill or provide a refund.

These eligible benefits include the Homestead Property Tax Credit, the Home Heating Credit and the Retirement and Pension Benefits Subtraction. Often, uninformed individuals may miss permitted tax deductions, the department advised in a news release.

“I encourage seniors to seek out a qualified tax professional and investigate the Michigan tax benefits they may be eligible to receive,” State Treasurer Rachael Eubanks said. “You may qualify for low- to no-cost tax assistance from IRS-trained and certified volunteers. Taking advantage of tax programs and available resources can lead to more income for groceries, prescriptions, housing costs and other needs on a fixed income.”

Homestead Property Tax Credit

The Homestead Property Tax Credit is a benefit for qualified Michigan homeowners and renters, helping to pay some of the property taxes billed.

This credit can be filed up to four years from the year it could be claimed and the maximum credit amount may be adjusted annually.

Details about income, property and living situation impact the allowable credit amount. For guidance, go to the treasury’s new Homestead Property Tax Credit webpages, https://www.michigan.gov/taxes/iit/credits/hptc.

Home Heating Credit

The Home Heating Credit is a tax benefit for qualified Michigan homeowners and renters with low to moderate income, helping to pay some of their heating expenses.

The maximum credit a taxpayer can claim may change each year. For qualifications and guidance, go to the treasury’s Home Heating Credit webpages, https://www.michigan.gov/taxes/questions/iit/accordion/heating/home-heating-credit-information-1.

Individuals who do not qualify for the Home Heating Credit may be eligible for other assistance through the Michigan Department of Health and Human Services. The Low Income Home Energy Assistance Program helps households with high energy bills, shut-off notices and home energy repairs. Go to https://www.michigan.gov/mpsc/consumer/energy-assistance.

Retirement and Pension Benefits Subtraction

For retirees, the Retirement and Pension Benefits Subtraction is a reduction of all eligible retirement income from the Michigan taxable income. Retirement income is reported on Form 1099-R for federal tax purposes and includes defined benefit pensions, IRA distributions and most payments from defined contribution plans.

Tax Year 2024 is the second year of the retirement tax rollback phase-in. This new law allows the person to choose the most advantageous subtraction for retirement and pension benefits.

For qualifications and guidance, go to the treasury’s refreshed Retirement and Pension Benefits webpages, https://www.michigan.gov/taxes/iit/retirement-and-pension-benefits. These pages include a Retirement and Pension Estimator that can help individuals determine the eligible deduction and subtraction with the greatest value.

Need filing assistance?

For assistance filing a tax return, seniors are encouraged to go to michiganfreetaxhelp.org, irs.treasury.gov/freetaxprep or dial 211. Connect with the local Area Agency on Aging to learn about tax support and services available in your area.

In addition, electronic filing and direct deposit is fast, convenient, and safe. Details are available at mifastfile.org.

Allow at least four weeks from the date of the e-filed state tax return confirmation to receive a refund.

Last year, of the roughly 5 million returns received by treasury, Michigan taxpayers e-filed more than 91% of those returns. For more information about e-filing, go to mifastfile.org.