Questions & Answers

What types of other nontaxable income should be included in my Total Michigan Household Resources?

Nontaxable income that needs to be included in the calculation of the Michigan Homestead Credit includes:

  • Scholarships, stipends, grants, and payments (except government payments) paid directly to third parties such as an education institution or subsidized housing project
  • Compensation for damages to character or for personal injury or sickness
  • An inheritance (except for an inheritance from your spouse)
  • Proceeds of a life insurance policy paid on the death of the insured (except for benefits from a policy on your spouse)
  • Death benefits paid by or on behalf of an employer
  • Minister's housing allowance
  • Forgiveness of debt (e.g. mortgage foreclosure etc.) not included in AGI
  • Reimbursement from dependent care and/or medical care spending accounts
  • Forgiven Paycheck Protection Program loans (include the amount of the forgiven loan subtracting any business expenses related to payroll, rent, and utilities not already deducted in AGI)

Household Resources do NOT include:
  • Net operating loss deductions taken on your federal return
  • Payments received by participants in the foster grandparent or senior companion program
  • Energy assistance grants
  • Government payments made to a third party (e.g., payments made to a doctor, GI Bill benefits and payments from a PELL grant and 2020 MSHDA Eviction Diversion Program (EDP) if not included in AGI).
    Note: If payment is made from money withheld from your benefit, the payment is part of household resources. (For example, the MDHHS may pay your rent directly to the landlord.)
  • Money received from a government unit to repair or improve your homestead
  • Surplus food or food assistance program benefits
  • State and city income tax refunds and homestead property tax credits
  • Chore service payments (these payments are income to the provider of the service)
  • The first $300 from gambling, bingo, lottery, awards, or prizes
  • The first $300 in gifts of cash or merchandise received, or expenses paid on your behalf (rent, taxes, utilities, food, medical care, etc.) by parents, relatives or friends
  • Amounts deducted from Social Security or Railroad Retirement benefits for Medicare premiums
  • Life, health, and accident insurance premiums paid by your employer
  • Loan proceeds
  • Inheritance from a spouse
  • Life insurance benefits from a spouse
  • Payments from a long-term care policy made to a nursing home or other care facility.
  • Most payments from The Step Forward Michigan program
  • Compensation for wrongful imprisonment
  • Economic Impact Payments

For more information on Total Michigan Household Resources, visit the Michigan Department of Treasury Website .

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