Tax software is built for the average return — not for catching the Michigan-specific credits most filers miss. The Homestead Property Tax Credit alone is worth up to $1,800, and a meaningful share of eligible Macomb County residents never claim it. Stout Tax Strategies prepares individual and family returns with these details built in, not bolted on afterward.
Michigan Department of Treasury, confirmed through 2026 guidance. Individual eligibility depends on total household resources and other factors.
The Homestead Property Tax Credit is a refundable Michigan credit for property tax paid in excess of 3.2% of your total household resources. It applies to homeowners and renters alike, and it's commonly missed because most tax software doesn't proactively prompt for it the way a preparer reviewing your actual property tax statement would.
| Requirement | 2026 Threshold |
|---|---|
| Total household resources | $71,500 or less |
| Taxable value of home (if you own) | $165,400 or less |
| Maximum credit amount | $1,800 (higher limits for seniors 65+, disabled, and veterans) |
| Residency requirement | Michigan resident for at least 6 months of the filing year |
Renters qualify too — the taxable value cap applies only to homeowners. Filed on Form MI-1040CR with your Michigan return.
If you're retired or approaching retirement in Macomb County, this is the single most consequential change in years: starting with the 2026 tax year, Michigan's birth-year tier system for retirement income is fully phased out.
Before 2026, taxpayers born before 1946 (former "Tier 1") had an unlimited exemption on public pension income. Starting in 2026, that same income is now subject to the combined $67,610/$135,220 cap like everyone else — unless you were born before 1946, in which case you can still elect the older, unlimited treatment.
Example: a married couple receiving $90,000 from a state pension and $60,000 from a 401(k) has $150,000 in total retirement income, but can only subtract $135,220 under the new cap — leaving $14,780 taxable that would have been fully exempt under the old Tier 1 rules.
Social Security stays simple: Regardless of any of the above, Social Security benefits remain 100% exempt from Michigan income tax for every filer, at every income level, every birth year. The complexity is entirely on the pension and retirement-account side.
Form 1040 + MI-1040 prepared together. W-2 income, multiple employers, dependents, education credits — reviewed for every applicable federal and Michigan-specific credit.
We check your actual property tax statement and total household resources against the 2026 thresholds — $71,500 income / $165,400 taxable value — every year, automatically.
Social Security, pension distributions, 401(k)/IRA withdrawals, and the new unified 2026 retirement exemption calculated correctly — including the Tier 1 election if you were born before 1946.
Capital gains, dividends, interest income, and rental property reporting. Michigan taxes capital gains as ordinary income at the flat 4.25% rate — we make sure basis and holding period are calculated correctly.
Schedule C preparation for freelancers, consultants, and gig workers. Quarterly estimated payment calculations and self-employment tax computation included.
Estimated payment adjustments, Roth conversion timing, retirement withdrawal sequencing, and deduction strategy — planned before December 31, not discovered in April.
| Return Type | Typical Range | Key Variables |
|---|---|---|
| W-2, standard deduction | $150 – $250 | Single employer, no dependents, no investments |
| W-2 + itemized deductions | $200 – $350 | Homestead credit, mortgage interest, charitable contributions |
| Retirement income return | $200 – $400 | Pension, Social Security, IRA/401(k) distributions, exemption calculation |
| Investment/rental income | $300 – $600 | Number of properties, capital gains transactions, depreciation |
| Self-employed (Schedule C) | $300 – $600 | Expense volume, home office, vehicle deductions |
We confirm your specific price during your free consultation — no hourly surprises.
We review your prior-year return, identify your income sources for this year, and flag any Michigan credits that may have been missed previously.
A personalized checklist based on your specific situation — W-2s, 1099-Rs, property tax statements, brokerage statements — so nothing gets missed.
Federal and Michigan returns prepared together, reviewed for accuracy, and checked against every applicable credit before filing.
E-filed once approved. We remain available for questions throughout the year — estimated payments, life changes, retirement planning.
Our office is at 32008 Harper Ave in St. Clair Shores. We prepare personal tax returns for residents throughout:
Most Macomb County residents owe no city income tax — but if you work in Detroit while living elsewhere in the county, that city's 1.2% nonresident income tax still applies and requires a separate city return. We handle that filing alongside your federal and state returns.
It's a refundable Michigan credit for property tax paid in excess of 3.2% of your total household resources, available to both homeowners and renters. For 2026, you qualify if your total household resources are $71,500 or less, and if you own your home, its taxable value must be $165,400 or less. The maximum credit is $1,800, with higher limits available for seniors 65+, the disabled, and veterans.
Starting with the 2026 tax year, Michigan's old birth-year tier system is fully phased out. All eligible retirees, regardless of birth year, can now deduct up to $67,610 (single) or $135,220 (joint) in combined public and private retirement income. Military pensions remain fully exempt with no cap, and public safety retirees can claim an unlimited exemption on public pension income.
No. Michigan does not tax Social Security benefits for any filer, regardless of age, birth year, or income level. This exemption is unaffected by the 2026 retirement income changes, which apply to pensions and retirement account distributions, not Social Security.
Not necessarily. Taxpayers born before 1946 can still elect the older, unlimited deduction for public pension income instead of the new combined cap. This election can result in a larger deduction than the unified 2026 cap, depending on your specific pension amount — we calculate both methods and use whichever produces the better outcome for you.
A simple W-2 return with standard deduction typically runs $150–$250. Returns involving the homestead credit or itemized deductions run $200–$350. Retirement income returns with pension and Social Security calculations are typically $200–$400. Investment, rental, and self-employed returns range from $300–$600 depending on complexity.
Prior-year return, all W-2s and 1099s (including 1099-R for retirement distributions), mortgage interest statement (1098), property tax statements (for the homestead credit), and any brokerage statements for investment income. If you're missing anything, we can pull your IRS wage and income transcript directly.
Yes. Detroit levies a 1.2% city income tax on nonresidents who work within city limits. We calculate this correctly and file the required city return alongside your federal and Michigan returns, so nothing falls through the cracks.
Bring your prior-year return to a free consultation. We'll check it against the 2026 Michigan credits and tell you exactly what applies to your situation.
Schedule a Free Consultation Call 586-757-6116