Here are a few ways that seniors can save money.  I am sure you are already aware of these possibilities but just in case, take a minute or two to read this page:

Michigan Income Tax Homestead Tax Credit:

You can receive up to $1,200.00 in property tax credit and you don't have to own a home or even pay property taxes directly to be eligible.  In fact you don't even have to pay Michigan Income Tax to be eligible. 

How do I qualify?

The property tax that you pay on your primary residence or 20% of the rent you pay must exceed 3.5% of your household income.  Household income basically includes all sources of taxable income as well as social security benefits and pensions, less any cost of health insurance, which does not include Medicare.  If you live in subsidized housing such as senior citizens housing, the rent does not qualify.  If you qualify, and even if you don't pay taxes you should submit form MI 1040-CR.  If you are over age 65, the credit is equal to 100% of the excess up to $1,200.00. 

Here's an example.

My household income is $10,000.00.  That includes my gross social security benefits, interest and pension, less blue cross insurance but no Medicare insurance.   The property taxes on my primary residence total $1,200.00.  That includes both the summer and winter taxes.  3.5% of $10,000.00 equals $350.00.  If you are over 65, you are eligible for a credit offset to your Michigan income tax or a refund, even if you pay no tax, of $850.00.   If you are a renter, and your monthly rent is $500.00, 20% of your rent is considered property tax.  20% times $6,000.00 ($500.00 per month for 12 months) is $1,200.00.  Thus you are also eligible for a $850.00 credit or refund. 

Prescription Drug Credit:

The State of Michigan provides a prescription drug credit for individuals age 65 or over.  To be eligible, household income (see definition of household income above) must not exceed $12,075.00 for single individuals or $16,275 for married couples.  The maximum you can receive is $600.00 for singles and $1,200.00 for married couples.  The credit is available for either the wife or husband even though the partner has not reached age 65 by the end of the eligible year.  A prescription drug credit form (CR-9)must be filed each year by June 1 to cover the prior year's expenditures.   The credit is calculated by adding the amount of qualified prescriptions and reducing the total by 5% of household income.  In other words, if household income is $10,000.00 and qualified expenditures are $750.00, the maximum credit is $250.00. ($750.00 minus 5% times $10,000.00).  The Prescription Drug Fund is limited and therefore you may not receive back the full amount of your claim. 

If I live in or know someone who lives in a nursing home, are the amounts paid for prescriptions eligible for the credit?

Yes, however believe it or not, if you are in a nursing home or what the State refers to as a licensed health care facility for at more than 6 consecutive months in the year, you are not eligible.  That's ridiculous but that is the current law.  See my page on Where is the Justice for more details. 

Lifeline Telephone Assistance:

If your household income is less than $12,060 for one individual or $16,590 for two, you can be eligible for up to a $8.25 reduction in your monthly phone bill and up to $30.00 off the cost of a telephone installation charge.  If you have any questions, call the telephone company at 1-800-621-8650 or the phone company that serves your area.

I'm not eligible but know someone who currently lives in a nursing home and has a phone, might they be eligible?

Yes, if they meet the income requirements.  Of course, this would be a phone in their own name and not one through a switchboard as in hospitals.  Of course, household income does not allow a deduction for payments to nursing homes or similar facilities.  Thus while income may exceed the minimum amounts, payments to the facilities may be far in excess of that amount.  That's not fair.  See my page on Where is the Justice.