Homestead Property Tax Credit...what a ripoff

[Retiredguy2]

During four decades of life here in Mid-Michigan I paid property taxes which were in a large part taxes to support the local schools although I never had any kids in the local school system. For the most part I did not begrudge paying the taxes because I have always felt education was an important part of success in life. And for many of my years prior to retirement I was constantly assured that once I did retire, I would be able to claim my local property taxes (as of now, 4 grand a year) as a deduction on my state income taxes. Well...guess what? I was able to claim the property tax credit for ONE YEAR...One tax year...because when I began collecting Social Security (which I also had to pay taxes on) my household income went up to the point where I could no longer claim a property tax credit. What a farce. Pretty much what I have expected all along.

Any opinions?

 

[jack707]

I think that if you don't have kids in the School system you should not be required to pay the tax bill for them! .As far as Michigan goes I moved out of there in 09 (grand rapid county) just when my tax bill shot up but Wisconsin no better with their tax scam there has to be a better way for for them to figure someone tax for the year . I talked to the tax assure for my county and he told me its high because of the libs.in Madison.

 

[newbury]

<snip> I began collecting Social Security (which I also had to pay taxes on) my household income went up to the point where I could no longer claim a property tax credit. What a farce. Pretty much what I have expected all along.

Any opinions?

Well, don't collect your SS and you will save money on taxes.

 

[JCByrd24]

Interesting. I would not think this would be one of the deductions that would run out/ have income limits as it's based on the premise of not being taxed on income that is spent on other taxes. Similar to deducting your excise tax and state income tax from your federal return. Honestly I use H&R block software and haven't paid close enough attention but I have always assumed that my property tax deduction was applied to both state and federal incomes (I live in Maine which does have state income tax). Now if this was a second home that would seem reasonable.

 

[2LaneCruzer]

I frankly don't object to paying taxes for the school system, but I do expect it to be reasonable and I do object to it being restricted to property owners especially when anyone with a driver's license (or not) can vote to increase them. Let's make it equal by restricting who can vote (probably not an option) or let's do it by the lottey, sales tax, or how about this...A birth tax! My taxes alone on my home today are about the same as the payment was 40 years ago.

 

[Garandman]

I think that if you don't have kids in the School system you should not be required to pay the tax bill for them! .

And the first town that does this will see their property values go to the basement, because no family is going to move there.

 

[quicksandfarmer]

I think that if you don't have kids in the School system you should not be required to pay the tax bill for them!

Those kids are paying for your Social Security. You want them as well-educated as possible.

 

[JerryK]

Us poor Michigan seniors have been spending a lot of time in the barrel these last few years.......
But I am sticking around for MANY MORE YEARS to complain about it.....!!!!!!!!!!!!!!!!!

 

[Threepoint]

Well, don't collect your SS and you will save money on taxes.

This. Claim your SS benefits, then suspend them until you have to start taking them at age 70-1/2. They'll continue to accrue at the rate of 8% simple interest. :thumbsup: In the meantime, enjoy your homestead property tax credit.

 

[davesl708]

Here in Kansas the Homestead tax is limited to household earning below $35k and you only get $700 of it back.
In low tax counties that works fine but in the high tax counties you leave a lot on the table.