MaxGhenis · Oct 4, 2026 · Oct 4, 2026 · Oct 4, 2026 · Oct 4, 2026 · Oct 4, 2026
diff --git a/changelog.d/mi-household-resources-premiums-gambling.fixed.md b/changelog.d/mi-household-resources-premiums-gambling.fixed.md
@@ -0,0 +1 @@
+Subtract Michigan household resources premiums once (MI-1040CR line 31 leaves out the self-employed health insurance deduction on line 30), and exclude the first $300 of gambling winnings and of gifts (MCL 206.510(1)(a) and (b), lines 20 and 24), counting gifts from relatives and friends on line 24.
diff --git a/policyengine_us/parameters/gov/states/mi/tax/income/household_resources.yaml b/policyengine_us/parameters/gov/states/mi/tax/income/household_resources.yaml
@@ -28,9 +28,13 @@ values:
     # MI-1040CR line 19, net capital gains and losses from the filer's U.S.
     # Schedule D, a loss limited to $3,000 ($1,500 married filing separately).
     - filer_loss_limited_net_capital_gains
-    # MI-1040CR line 20, alimony and other taxable income.
+    # MI-1040CR line 20, alimony and other taxable income: "awards, prizes,
+    # lottery, bingo, and other gambling winnings over $300" (the first $300
+    # is household_resources_gambling_exclusion) and other taxable income,
+    # such as miscellaneous_income (26 CFR 1.61-14), in full.
     - alimony_income
     - gambling_winnings
+    - miscellaneous_income
     # MI-1040CR line 21, Social Security, SSI and railroad retirement
     # benefits, including amounts received for dependents.
     - social_security
@@ -40,8 +44,14 @@ values:
     - child_support_received
     # MI-1040CR line 23, unemployment compensation.
     - total_unemployment_compensation
-    # MI-1040CR line 24, gifts received or expenses paid on your behalf.
-    - miscellaneous_income
+    # MI-1040CR line 24, "the value over $300 in gifts of cash or merchandise
+    # received, or expenses paid on your behalf ... by parents, relatives, or
+    # friends" (the first $300 is household_resources_gift_exclusion). Gifts
+    # are excluded from federal gross income (IRC 102) but are total
+    # household resources (MCL 206.510(1)). financial_assistance is cash
+    # only; expenses others pay on the claimant's behalf (gifts in kind) have
+    # no input.
+    - financial_assistance
     # MI-1040CR line 26, veterans' benefits and workers' compensation.
     - veterans_benefits
     - workers_compensation
@@ -68,9 +78,9 @@ metadata:
     href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2023/BOOK_MI-1040.pdf#page=31
   - title: Michigan 2024 Individual Income Tax Instructions
     href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2024/MI-1040-Instructions.pdf#page=31
-  - title: Michigan 2025 Individual Income Tax Instructions
-    href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/MI-1040-Book.pdf#page=31
-  - title: Michigan 2025 Individual Income Tax Instructions, Total Household Resources
+  - title: "Michigan 2025 Individual Income Tax Instructions, Total Household Resources #page 26-27,31-32"
     href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/MI-1040-Book.pdf#page=26
   - title: Michigan Compiled Laws Chapter 9 Section 206.508 - Definitions. (4)
     href: https://law.justia.com/codes/michigan/2022/chapter-206/statute-act-281-of-1967/division-281-1967-1/division-281-1967-1-9/section-206-508/
+  - title: MCL 206.510(1), "Income" defined
+    href: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-206-510
diff --git a/...engine_us/parameters/gov/states/mi/tax/income/household_resources_gambling_exclusion.yaml b/...engine_us/parameters/gov/states/mi/tax/income/household_resources_gambling_exclusion.yaml
@@ -0,0 +1,23 @@
+description: Michigan excludes this amount of awards, prizes, lottery, bingo and other gambling winnings from household resources.
+values:
+  # MCL 206.510(1)(b): a fixed amount in the statute, not indexed. The
+  # MI-1040CR counts winnings "over $300" on line 20, one amount for the
+  # claimant and spouse. The model applies it to gambling_winnings; it has no
+  # separate input for awards and prizes, and one entered as
+  # miscellaneous_income counts in full on line 20.
+  2021-01-01: 300
+metadata:
+  unit: currency-USD
+  period: year
+  label: Michigan household resources gambling winnings exclusion
+  reference:
+    - title: MCL 206.510(1)(b), "The first $300.00 received from awards, prizes, lottery, bingo, or other gambling winnings"
+      href: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-206-510
+    - title: 2022 MI-1040 Instructions, MI-1040CR line 20
+      href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2022/BOOK_MI-1040.pdf#page=32
+    - title: 2023 MI-1040 Instructions, MI-1040CR line 20
+      href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2023/BOOK_MI-1040.pdf#page=32
+    - title: 2024 MI-1040 Instructions, MI-1040CR line 20
+      href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2024/MI-1040-Instructions.pdf#page=32
+    - title: "2025 MI-1040 Instructions, MI-1040CR line 20 and total household resources #page 27,32"
+      href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/MI-1040-Book.pdf#page=27
diff --git a/policyengine_us/parameters/gov/states/mi/tax/income/household_resources_gift_exclusion.yaml b/policyengine_us/parameters/gov/states/mi/tax/income/household_resources_gift_exclusion.yaml
@@ -0,0 +1,21 @@
+description: Michigan excludes this amount of gifts in cash or kind from nongovernmental sources from household resources.
+values:
+  # MCL 206.510(1)(a): a fixed amount in the statute, not indexed. The
+  # MI-1040CR counts "the value over $300 in gifts" on line 24, one amount
+  # for the claimant and spouse.
+  2021-01-01: 300
+metadata:
+  unit: currency-USD
+  period: year
+  label: Michigan household resources gift exclusion
+  reference:
+    - title: MCL 206.510(1)(a), "The first $300.00 of gifts in cash or kind from nongovernmental sources"
+      href: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-206-510
+    - title: 2022 MI-1040 Instructions, MI-1040CR line 24
+      href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2022/BOOK_MI-1040.pdf#page=32
+    - title: 2023 MI-1040 Instructions, MI-1040CR line 24
+      href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2023/BOOK_MI-1040.pdf#page=32
+    - title: 2024 MI-1040 Instructions, MI-1040CR line 24
+      href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2024/MI-1040-Instructions.pdf#page=32
+    - title: "2025 MI-1040 Instructions, MI-1040CR line 24 and total household resources #page 27,32"
+      href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/MI-1040-Book.pdf#page=27
Original file line number	Diff line number	Diff line change
		@@ -0,0 +1 @@
		Subtract Michigan household resources premiums once (MI-1040CR line 31 leaves out the self-employed health insurance deduction on line 30), and exclude the first $300 of gambling winnings and of gifts (MCL 206.510(1)(a) and (b), lines 20 and 24), counting gifts from relatives and friends on line 24.