MI 2025 HoH 14Kintrec 29Kpensions 30Kgssi 30Kproptax 2depx

[feenberg]

See http://taxsim.nber.org/out2psl/884

PE allows $1,900 for homestead credit while TA does not. This taxpayer has household resources of $73,286. THe household resources measure includes the full social security benefit, not just the amount in federal agi. The maximum income for the property tax credit is $71,500 according to MI-1040CR.

[PavelMakarchuk]

Confirmed bug — filed PolicyEngine/policyengine-us#8241 with diagnosis and proposed fix.

Diagnosis: PE correctly computes household resources ($73,288) but doesn't gate the credit on the MI-1040CR line 33 income limit ($71,500 for 2025). The senior-renter Worksheet 5 path then leaks the $1,900 max because it legitimately bypasses the standard Table B phase-out (per form). TaxAct correctly returns $0 due to the line 33 STOP.

Fix: add a household-resources eligibility gate ($69,700 for 2024, $71,500 for 2025), matching the form's line 33 STOP rule and aligning with MCL 206.520(8) statutory phase-out endpoint.