See how property tax credits and utility assistance programs help homeowners when they need a hand.

Typically, about one-third of household income goes toward housing expenses, including costs for property taxes and utilities. When costs go up and income doesn’t keep pace, homeowners can face financial difficulty. Fortunately, there are programs to lend a hand.

Property tax relief programs

For qualified Michiganders, two programs offer property tax relief.

The first is the Homestead Property Tax Credit, available to both homeowners and renters. The amount of the credit depends on your income, property and living situation. Keep in mind that if you qualify for the credit you must still pay your property taxes when they’re due. The relief is provided when you file your annual income taxes and the amount paid for property taxes reduces how much income tax you owe. Many seniors and low-income households qualify for the Homestead Property Tax Credit.

The second program for property tax relief is an exemption for disabled veterans and their un-remarried surviving spouses. With this program you don’t have to pay property tax. To qualify, the veteran must be determined to be totally disabled as a result of military service. Get details on applying for the Disabled Veterans Exemption here.

Help with utilities

Several programs are available to help people keep their utilities on.

First, there is the Home Heating Credit. It’s exactly what it sounds like: financial aid to help pay for heating expenses. This program is designed for low-income households. Like the Homestead Property Tax Credit, relief is gained at income tax time. The amount you pay for heat offsets what you owe in income taxes. The size of the credit depends on income and household size. For some people, the credit reduces how much additional income tax they pay for the year in April; for others it increases their income tax refund.

People who need help paying monthly utility bills can turn to several resources, including:

• Consumers Energy — they offer payment plans and assistance
• DTE Energy — they offer payment plans, and provide active military shutoff protection
• Central Michigan residents can access resources through 2-1-1
• Community Action in Kalamazoo and Kent County provides payment assistance

If your home is not served by the organizations above, Google your county name and “utility assistance” to locate resources in your area.

Getting the help you need

If you use a professional preparer, they can ensure you get the tax credits you qualify for. If you prepare taxes on your own, click on the links above for each program to see how to claim your credit.

If you have trouble keeping up with utility bills, seek help sooner rather than later. One way many homeowners manage heating bills is by working with their utility to pay a single rate all year round rather than trying to manage bills that spike when the weather turns cold.

 

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