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FAQ
Individual Income Tax
 Bill for Taxes Due
Why did I receive a bill for Taxes Due if I provided my bank account information on my return for funds to be withdrawn?
Bank account information submitted on a return is ONLY for direct deposit of a refund.

The taxpayer is responsible for paying the tax due prior to the deadline of April 15th.

Mail a check or money order to the address on the bill you have received.

You can make a payment using Collections e-Service.

 
How do I apply for an Installment Agreement?

Making payments before a “Bill for Taxes Due” is issued:

At this time you are not eligible for consideration of an Installment Agreement/payment plan. However you may still submit check or money order payments prior to receiving your “Bill for Taxes Due” to the following address.

Michigan Department of Treasury
P.O. Box 30727
Lansing, MI 48909

Include your social security number and tax year on the check or money order.

Any payments received after April 15th will be considered late and are subject to penalty and interest charges.

Making Payments AFTER a “Bill for Taxes Due” is issued:

At this time you may make a voluntary payment toward your balance or the Department of Treasury may consider an Installment Agreement if your situation meets certain criteria.

Mail your payment to:
Michigan Department of Treasury
Office of Collections
P.O. Box 30199
Lansing, MI 48909

What should I do if I cannot pay my debt in full?

Making Payments BEFORE a "Bill for Taxes Due" is issued:

If you have not received a "Bill for Taxes Due" (Form 168, Intent to Assess) or "Final Bill for Taxes Due" (Form 169, Final Assessment) from the Office of Collections, you will not be eligible for consideration of an Installment Agreement/payment plan.

You may still submit payments prior to receiving your "Bill for Taxes Due". Submit any late or partial payments by check or money order to: 

              Michigan Department of Treasury 
              P.O. Box 30727
              Lansing, MI 48929.


Be sure to include your social security number and tax year on the check or money order. Any payment(s) received after April 15th will be considered late and subject to Penalty and Interest charges.

Making Payments AFTER a "Bill for Taxes Due" is issued:

After you receive a "Bill for Taxes Due" (Form 168, Intent to Assess) or "Final Bill for Taxes Due" (Form 169, Final Assessment) the Department of Treasury may consider an Installment Agreement if your situation meets certain criteria.

Applying for an Installment Agreement 

For Installment Agreements for 24 months or less, the taxpayer must sign and return the installment agreement (Form 990). The agreement requires a proposed payment amount that will be reviewed for approval by Treasury. All highlighted areas of the form are required and must be filled in completely before your request for an installment agreement will be considered for approval. Failure to complete the required areas will result in a delay of processing and expose the taxpayer to continued collection efforts.

For Installment Agreements longer than 24 months, the taxpayer must complete a Collection Information Statement, listing their income, expenses, assets and liabilities. Please contact the Office of Collections to request the form and additional information.

Mail to: Office of Collections
Michigan Department of Treasury
P.O. Box 30199
Lansing, MI 48909-7600
Phone: (517) 636-5265

Installment Agreements are subject to Treasury review and approval. Upon approval you will receive a confirmation letter indicating your monthly payment amount, the due date as well as pre-identified payment coupons to use for directing payments to the Office of Collections. Please make payments as proposed during the time that your Installment Agreement request is under review.

If your Installment Agreement is denied, you will receive instructions from the Office of Collections on how to proceed.

Note: The Office of Collections will file liens on Real and Personal property to protect the State's interest as a creditor. Liens will be filed even when a taxpayer has made payment arrangements and is current with all payments.

Caution! Once a lien is filed, the taxpayer's credit rating could be harmed and, in most cases, property cannot be sold or transferred until the past-due tax is paid. A lien filed at a county Register of Deeds becomes a public record. Credit reporting agencies may obtain and publish the lien information. A lien filed against an individual or business that is picked up by a credit reporting agency will remain part of that credit history for the next seven to ten years.

Payments will be applied to the taxpayer's liability at Treasury's discretion.

 

Why did I receive this bill?
The reason for the assessment is explained on the notice you received. If you have further questions regarding the bill, please contact Treasury at the number indicated on the bill.
What should I do if I received a bill and I do not owe it?

If you receive a bill that you believe you do not owe, send the following information to support your claim:

  • A letter explaining why the tax is not due (be sure to include your account number/social security number), and
  • Proof that it is not owed

Or

If you believe you have already paid this assessment/bill:

  • Send a legible copy of the front and back of your canceled check or money order

Mail the above information and a copy of the bill to the address on the bill you have received.

Refer to the back of your bill for appeals information.

Why did it take so long for me to receive a bill?
To ensure that billings are correct, Treasury attempts to verify that all payments received are properly posted to the correct accounts prior to issuing an assessment/bill. This process takes a long time to complete due to the large volume of payments received.

Note: Taxpayers are responsible for the accurate filing of their return and making sure the correct payment is made timely, no matter who prepares the return.  Any payments received after April 15 will be considered late and subject to penalty and interest charges.

Why have I received a bill when I already mailed my payment?
If the payment has cleared your account, provide a copy of the front and back of the canceled check or money order for the payment to be located and credited to your account. Mail to the address on the bill you have received, and include a copy of the bill with your correspondence.

Note: To avoid delay in the future, make sure to include your social security number, tax year, and type of payment (e.g., income tax or estimate payment) on the front of your check or money order.
I sent a check but it has not cleared my financial institution. Will the penalty and interest be waived if I show proof that I sent my payment on time?

Interest will not be waived. A waiver of penalty may be considered if you include full payment for the taxes and interest due and provide documentation such as:

  • A copy of your check register or a carbon copy of the check and a copy of the financial institution statement supporting that the funds were available at the time the check was sent.
  • A letter of explanation (be sure to include your account number/social security number)

Mail the above information and a copy of the bill to the address on the bill you have received.

Where do I send my payment and/or correspondence?

Mail payment and correspondence to:

Michigan Department of Treasury
Office of Collections
P.O. Box 30199
Lansing, MI 48909-7699

Check or Money Order must be made out to the "State of Michigan-Office of Collections". Place your assessment number and account number on the front of the check or money order.

Mail your payment with the coupon from the bottom of your Bill for Taxes Due.

Allow 30-45 days for the payment to post to your Account.

I agree with the amount due. Can I have the payment taken directly from my checking and/or savings account?

Yes, if you have received a "Bill for Taxes Due" or a "Final Bill for Taxes Due" a payment may be made directly from your checking or savings account. To make a payment you may:

  • Contact Collections at 517-636-5265 or
  • Go to Collections e-Service

Please have your financial institution's nine-digit routing number and your checking or savings account number available.

A fast and convenient way to make your payment is available at our e-Service site. You can make a payment from your checking or savings account by clicking the e-Service button above.

How do I apply for a penalty waiver?

A taxpayer requesting a waiver of penalty must do so in writing and must explain their reason(s) for late payment of tax due. If the taxpayer can demonstrate reasonable cause and meet the reasonable cause criteria as outlined in the Revenue Administrative Bulletin 2005-3 Penalty Provisions, the Department may waive the penalty charge.

Mail to:

Michigan Department of Treasury
Office of Collections
P.O. Box 30199
Lansing, MI 48909-7699

I received this billing and the taxpayer is deceased. What do I do?

Prior to any review or action on the bill, the proper documentation must be filed with the Michigan Department of Treasury. Proper documentation can include the following:

  • A completed MI-1310 form and copy of death certificate
  • Letters of Authority from the court

If there is a probate estate please provide the following information:

  • Probate case number
  • Date of death
  • Court where case was filed
  • Final date to file claim
  • Name and address of personal representative and
  • If the estate is open or closed

Always include a copy of the bill with your correspondence.

Why is there a penalty on my Individual Income tax return/payment?

The Revenue Act of 1941, as amended (MCL 205.24) provides for penalty and interest charges if a taxpayer fails to pay a tax within the time specified. View a complete copy of the Revenue Act.

Full payment of taxes is due April 15. After that date, penalty is 5% for the first two months or portion thereof and 5% for each additional month thereafter, up to a maximum of 25%.

For additional information on calculating the amount of penalty and interest due.

I am having trouble getting through on the phone. Can I ask a question about my bill without talking to a service representative?
You may ask a question using the Check My Income Tax Info option on this web site. For privacy and security reasons you will be asked for your social security number, name, tax year, adjusted gross income or total household resources/household income and filing status.

Click on the above link and follow these steps:
  • Select the option ‘Ask Treasury a Question’
  • To verify your identity, log in using the filer's social security number and name, then choose the link ‘Ask Treasury a Question’.
  • You will be asked to enter the tax year, your adjusted gross income / total household resources / household income and filing status. Follow the directions given on the next page to ask your question.
 College/University Students
More Student Information
May I claim a home heating credit if I am a college student?

College students and others whose permanent homes are not in Michigan, and are not Michigan residents, are not eligible for the Home Heating Credit. You may not claim a Home Heating Credit if you live in college or university operated housing.

You may qualify if all of the following apply:

  • You are not a full-time student who is claimed as a dependent on another person's income tax return.
  • You do not live in college- or university-operated housing (including dormitories, residence halls, or apartments).
  • Your homestead is in Michigan.
  • You were contracted to pay rent or own the home where you live.
  • Your income is within the income limits listed in Tables A and B on page 11 of the MI-1040CR-7 Home Heating Credit Claim Instructions

Total Household Resources Checklist

Home Heating Credit Information

View MI-1040CR-7 to determine if you qualify.

May I claim a homestead property tax credit if I am a college student?

College students and others whose permanent homes are not in Michigan, and are not Michigan residents, are not eligible for the property tax credit. You may not claim a property tax credit if you live in college or university operated housing. You may be eligible to claim a property tax credit if all of the following apply:

Beginning in 2012:

  • Your homestead is in Michigan.
  • You were a resident of Michigan for at least six months during the year
  • You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied
  • If you own your home, your taxable value is $135,000 or less
  • Your total household resources are $50,000 or less. Part-year residents must annualize total household resources to determine if the credit reduction applies
    (If 100% of your total household resources are received from Department of Human Services you do not qualify)

For 2011 and prior years:

  • Your homestead is in Michigan.
  • You were a resident of Michigan for at least six months during the year
  • You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied
  • Your household income is $82,650 or less. Part-year residents must annualize total household resources to determine if the credit reduction applies
    (If 100% of your total household resources are received from Department of Human Services you do not qualify)

View the MI-1040 instruction booklet to determine if you qualify.

Is the income I earn while a college student taxable?

All salaries, wages, and/or commissions earned in Michigan are subject to Michigan income tax regardless of your residency status (resident, part-year resident or nonresident) with the exception of residents of states having a reciprocal agreement with Michigan (Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin). Residents of these states are not required to pay tax to Michigan on income earned in Michigan; they pay tax to their state of residency.

View the MI-1040 instruction booklet to determine if you qualify.

I am a Michigan resident attending college and working in another state. Is the income I earn outside Michigan taxable?

Michigan residents who earn salaries, wages, and/or commissions in another state are subject to Michigan income tax. However, you may be entitled to a Credit for Income Tax Imposed by Government Units Outside Michigan.

If you are a Michigan resident earning salaries, wages and/or commissions in states having a reciprocal agreement with Michigan (Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin) you are not required to pay tax to these states. Michigan residents working in reciprocal states should claim an exemption from that state's income taxes.

View information on reciprocal agreements in the MI-1040 instruction booklet .

I am an out-of-state student attending a Michigan college/university. Am I considered a Michigan resident?

No. Out-of-state students who live in Michigan while they are attending school are not considered Michigan residents or part-year residents and should file as nonresidents.

 Composite Returns
Could I still make quarterly estimated payments on my composite return?

No. Effective October 1, 2003, flow-through entities as defined in the Income Tax Act of 1967 ( ITA) are required to withhold Michigan income tax from a nonresident member's distributive share of Michigan taxable income. The tax payment and reporting requirements are imposed at the entity level, and, in most cases, eliminate the quarterly estimated filing and payment requirements at the individual level.

Flow-through entities are required to make withholding tax payments on behalf of all non resident members (both participating and non-participating). Flow-though entities that are on a calendar year basis must withhold and file quarterly by April 15, July 15, October 15, and January 15. Flow-through entities that are not on a calendar year must withhold and file quarterly returns on the appropriate due dates which the taxpayer’s fiscal year corresponds to the calendar year. Fiscal year filer due dates apply regardless of the tax years of the members.

Beginning January 1, 2012 the payment of flow-through withholding tax is remitted on Form 4917 MICHIGAN Flow-Through Withholding Quarterly Return (flow-throughwithholding is no longer submitted on Form 160 CombinedReturn for Michigan Taxes).

Note: Form 4918 MICHIGAN Annual Withholding Reconciliation Return is replacing Form 165 Annual Return for Sales, Use, and Withholding for Flow-Through withholding and must be filed annually by all flow-throughentities who are submitting withholding payments.

Copies of Individual Returns
How can I obtain copies of previously filed returns?

To obtain copies of previously filed returns, you may use the Check My Income Tax Info option on this web site. For privacy and security reasons you will be asked for your social security number, name, tax year, adjusted gross income or total household resources/household income and filing status.

Click on the above link and follow these steps:

  1. Select the option ‘Ask Treasury a Question’
  2. To verify your identity, log in using the filer's social security number and name, then choose the link ‘Ask Treasury a Question’.
  3. You will be asked to enter the tax year, your adjusted gross income / total household resources / household income and filing status. Follow the directions given on the next page to request copies of previously filed returns.

You may also submit your request in writing to:

Michigan Department of Treasury
Customer Contact Division
P O Box 30058
Lansing, MI 48909

Please include your complete name, address, daytime phone number, social security number and tax year. There is no charge for this service, but please allow at least 30 days for delivery.

If you request copies of prior year returns filed four years ago or more, tax information may be sent to you in a microfiche version for that year.

How can I obtain copies of W-2s?

Requests for copies of your W-2(s) should be made to your employer. The State of Michigan does not receive individual withholding information.

In order to receive credit for Michigan tax withheld, you must obtain this information from your employer.

If your employer is unable to provide a copy, you will need to request a substitute income statement from the Internal Revenue Service. The substitute IRS form will contain only federal information. You may contact them at 800-829-1040, or through their Web site at www.irs.gov.

 Information for Deceased Taxpayers
What should I do if I have a check / draft for a deceased taxpayer?

Write “VOID” across the face of the check/draft and mail it with a request for replacement, along with the following documents attached:

  1. A Claim for Refund Due a Deceased Taxpayer (MI-1310)
  2. The death certificate, or Letters of Authority (If a Personal Representative has petitioned the court for Letters of Authority, a copy is required)

Allow 60 to 90 days for review.

Mail checks to:

Michigan Department of Treasury
Office of Financial Services
P.O. Box 30788
Lansing, MI 48909

Allow 120 days for review.

Mail drafts to:

Michigan Department of Treasury
P.O. Box 30757
Lansing, MI 48909

I am a Personal Representative for a deceased taxpayer. What documents are required?

We require one of the following when claiming a refund for a deceased taxpayer:

  1. If a Personal Representative has petitioned the Court for Letters of Authority, a copy is required. If not see #2.
  2. Claim for Refund Due a Deceased Taxpayer (MI-1310) and a death certificate must be attached.

Mail the appropriate documentation along with the final return to the address on the bottom of the return.

I have a Will, Trust, Letters of Authority for an Incapacitated Adult, Letters of Guardianship, and /or Letters of Conservatorship. Should I send them?
These forms are no longer valid upon the death of the individual taxpayer. If there was no need to obtain Letters of Authority, complete and send a Claim for Refund Due a Deceased Taxpayer (form MI-1310) with a copy of the death certificate.

These forms can be mailed to:

Michigan Department of Treasury
Customer Contact Division
P.O. Box 30058
Lansing, MI 48909

Or faxed to: 517-636-4488

 Direct Deposit
What should I do if my financial institution has no record of my refund being deposited?
You may request that your financial institution trace the deposit if you have the exact dollar amount and date of the deposit. If your financial institution cannot locate your refund after 30 days, you may request a direct deposit tracer through the Department of Treasury. A tracer can take up to 90 days. We will notify you of the results. If you have moved since the filing of your return, update your address by using the Check My Income Tax Info on our Web site.

For privacy and security reasons you will be asked for your social security number, name, tax year, adjusted gross income or total household resources/household income and filing status.

From the Check My Income Tax Info Web site:

  1. Select the option “Change my address”
  2. To verify your identity, log in using the filer’s social security number and name, then choose the link “Change my address”
  3. You will be asked to enter the tax year, your adjusted gross income/total household resources/ household income and filing status. Follow the directions given on the next page to request an address change

OR

Mail your change of address to:
Michigan Department of Treasury
Customer Contact
P O Box 30058
Lansing, MI 48909

Include your name, social security number, old address, new address information and daytime phone number.

My return is completed but my preparer has no record of my direct deposit.

If your preparer's financial institution and the Department of Treasury confirm that the funds were posted to your preparer’s account, it is a civil matter between you and your tax preparer.

You may request that the financial institution trace the deposit if you have the exact dollar amount and date of the deposit. If the financial institution cannot locate your refund after 30 days, you may request a direct deposit tracer through the Michigan Department of Treasury. 

A tracer can take up to 90 days. We will notify you of the results by mail. If you have moved since the filing of your return, you must update your address. For more information view 'How do I change my address with the Department of Treasury?'.

I recently filed my taxes and chose direct deposit. What happens to my direct deposit if my account was closed at the time of the deposit?

If your account has been closed and the financial institution has returned the deposit, a check will be mailed within 45 days to the address on record.

Direct deposit routing and account numbers are only accepted with the original return. The Michigan Department of Treasury cannot make any changes to the direct deposit information after the return has been submitted.

If your financial institution cannot locate the refund after 30 days, you may request a direct deposit tracer through the Department of Treasury.

What should I do if the routing transit number on my return Is incorrect?
No changes can be made to your routing transit number (RTN) once your return has been received.  

If your RTN is incorrect and the financial institution has returned the deposit, a check will be mailed within 45 days to the address on record.
What should I do if the account number on my return is incorrect?

No changes can be made to your account number once your return has been received.

  • If it is a valid account number your financial institution may catch the error and deposit it into your account.
  • If the deposit goes into a valid account number as indicated on your return, but it is not your account, it is a matter for you and your financial institution to resolve.
  • If your account number is incorrect and the financial institution has returned the deposit, a check will be mailed within 45 days to the address on record.
How can I have my income tax refund direct deposited?

When you e-file your return you will receive prompts to provide your routing transit number (RTN), account number, and account type (savings or checking). You do not need to mail in a paper copy of form 3174, Michigan Direct Deposit of Refund.

If you are filing a paper return, complete the direct deposit information on the MI-1040 and MI-1040CR tax return. You will need to provide your RTN, account number and account type (savings or checking). When filing an MI-1040CR-7 you must complete form 3174, Michigan Direct Deposit of Refund.

Routing Transit Number (RTN): The 9-digit RTN is usually found between the symbols |: and |: on the bottom left side of your check. The first two digits must be 01 through 12 or 21 through 32. If you have any questions check with your financial institution for this number.

Account Number: Enter your financial institution account number up to 17 characters (both numbers and letters). The account number is usually found immediately to the right of the RTN on the bottom of your check. Include hyphens but omit spaces and special symbols. Enter the number from left to right and leave unused boxes blank. Do not include the check number.

Account Type: Please specify as to whether the account you wish to have your refund deposited is a checking or savings account.

Note: Verify that all account and routing numbers are correct. Your routing transit number and account number cannot be changed or added after the return has been filed.

 E-file
Can I file my Michigan individual income tax return separately from my federal return?

Yes. State Standalone e-file lets you submit your Michigan individual income tax return separately from your federal return. You can even e-file your homestead property tax credit and/or home heating credit claims separately. If you e-file your Michigan tax return alone, be sure to calculate your federal return before completing and e-filing your Michigan return.

You may want to choose State Standalone e-file if you:

  • Already filed your federal return (e-filed or paper filed).
  • Are not required to file a federal return.
  • Only need to file a Michigan property tax credit and/or home heating credit claim.

If you have already filed your federal return, and now want to e-file your Michigan return, do not e-file another copy of the federal return. Doing so will result in a rejection from the IRS and Michigan will not receive your State return information.

What do I do if my return was rejected?
If a federal return is rejected the accompanying Michigan return will also be rejected. If the error is one that can be corrected, both returns may be retransmitted to the IRS. If the federal return cannot be corrected, the State return can be retransmitted separately as a State Standalone return if supported by the software. There is no limit on how many times a State Standalone return can be retransmitted. Please note that if you do not correct the error, your return cannot be accepted or processed by Michigan.
What individual income tax forms are eligible for e-file?

Not all software supports all forms that are eligible for e-file.

The following forms and schedules are eligible for e-file. These forms may or may not be supported by your software:

  • Form/
    Schedule
  • Title

  • MI-1040
  • Individual Income Tax Return - Required for all Fed/State e-file returns; not required for State Standalone e-file returns.
  • MI-1040CR
  • Homestead Property Tax Credit Claim
  • MI-1040CR-2
  • Homestead Property Tax Credit Claim for Veterans and Blind People
  • Schedule CR-5
  • Schedule of Taxes and Allocation to Each Agreement
    (e-file limited to 25 agreements)
  • 4976
  • Home Heating Credit Claim MI-1040CR-7 Supplemental
  • MI-2210
  • Underpayment of Estimated Income Tax
  • MI-1040D
  • Adjustments of Capital Gains and Losses
  • MI-8949
  • Sales and Other Dispositions of Capital Assets
  • MI-1040H
  • Schedule of Apportionment (limited to six occurences for e-file)
  • MI-4797
  • Adjustments of Gains and Losses from Sales of Business Property
  • Schedule NR
  • Nonresident and Part-Year Resident Schedule
  • 4013
  • Resident Tribal Member Annual Sales Tax Credit
  • 4642
  • Voluntary Contribution Schedule
  • 4973
  • Pension Continuation Schedule
  • 3174
  • Direct Deposit of Refund
  • 2010 and 2011 returns
  • When supported by the software

Additionally, some software may allow the following documents to be attached as PDF documents:

  • Form/
    Schedule
  • Title

  • MI-1310
  • Claim for Refund Due a Deceased Taxpayer (and required documents)
  • FEN-851
  • Custodial Party End of Year Statement
  • Form 151
  • Authorized Representative Declaration (Power of Attorney)
  • Form 5049
  • Worksheet for Married, Filing Separately and Divorced or Separated Claimants
  •  
  • Other State Returns
How will I know if my e-filed return was received?

If you are e-filing both your federal and Michigan returns together:

  • IRS must first accept the federal return in order for Michigan to receive the State return.
  • After transmitting, you will receive an electronic return verification (acknowledgment) that your federal return has been either accepted or rejected by the IRS.
  • You will receive a separate acknowledgment from Michigan for your State return.
  • If your federal return is rejected, the software provider should help you with any needed corrections. You will need to retransmit both returns.

If you are e-filing your Michigan return separately from your federal return:

  • After transmitting, you will receive an electronic return verification (acknowledgment) that your Michigan return has been either accepted or rejected.
  • If your Michigan return is rejected, the software provider should help you with any needed corrections and you will need to retransmit your Michigan return.

Note: If your online software provider sends e-mail notifications regarding the status of your return, you may want to verify a spam filter is not blocking e-mail notifications from the software provider's e-mail address.

If you e-file using a tax preparer, you will receive notification from the tax preparer if the IRS or Michigan rejected your return. You must receive an acceptance acknowledgment for both the federal and Michigan returns. Do not assume that an acknowledgment from the IRS is a guarantee of receipt by Michigan.

Where can I find more information on Michigan e-file?

Visit the Michigan Department of Treasury Web site at www.MIfastfile.org for a list of e-file resources, how to find an e-file provider, and more information on free e-file services.

Where do I mail the MI-8453 form (Michigan Individual Income Tax Declaration for Electronic Filing)?

If the MI-8453 is used to sign the e-file return and the return is e-filed by a tax preparer, Treasury recommends that the preparer retain it for six years. Do not mail this form to Treasury.

If the MI-8453 is used to sign the e-file return and the return is e-filed by an individual taxpayer, the MI-8453 should be retained by the taxpayer. Do not mail this form to Treasury.

I made an error on my electronically filed Michigan Income Tax Return. Can I electronically file another return?

If you made an error on an electronically filed return for the tax year 2012 or later, you must file a paper copy of the MI-1040X-12 (Amended Income Tax Return). All 2011 and prior years must use the MI-1040X . Amended returns received using the incorrect form or missing pages will not be processed.

How much does it cost to e-file?

The IRS and Michigan Treasury do not charge for e-file. The cost varies depending on the tax preparer, software package or online provider you select for e-file. You may be able to e-file for free. To see if you qualify, please visit www.MIfastfile.org to find out more about free e-file offerings.

How long will it take to process my electronically filed refund?

Michigan Department of Treasury’s “Check My Income Tax Info” Web site is the quickest way to check the status of your refund. Please allow 14 days before checking the status of your e-filed return.

As an added convenience, you may choose Direct Deposit and your refund will be deposited directly into your account at your financial institution.

Can I sign my Michigan e-file return electronically?

Yes, if you are e-filing your Michigan return separately from your federal return (State Standalone e-file) you may choose to sign it electronically if you filed an MI-1040, MI-1040CR, MI-1040CR-2 or MI-1040CR-7 for the previous tax year and your software supports the Electronic Signature Alternative (ESA). The ESA is composed of the following “shared secrets” from your previous year's return:

  • Social Security Number(s)
  • Adjusted gross income (AGI) or total household resources/household income from from the previous year’s return; and
  • Tax due or refund amount from the previous year's return.

The shared secrets can be from your return as originally filed, an amended return, or the return as corrected by Treasury.

If you are e-filing your Michigan return together with your federal return, Michigan accepts the federal signature.

What should I do when I owe tax and want to e-file my income tax return?

When you e-file and owe tax, your payment is due on April 15, 2015. To avoid penalty and interest, payment of taxes due should be made no later than April 15.

There are now multiple ways to pay tax due on e-filed returns:

e-Payment Options 

You may choose to make an electronic payment (eCheck) from a checking or savings account if the taxpayer has filed a Michigan Individual Income Tax return from the previous tax year. There is no fee to use this payment option.

All Michigan Individual Income Tax filers may choose to make a payment using a credit or debit card. Credit card payments will be assessed a convenience fee of 2.35% of the total payment amount. Debit card payments will be charged a flat fee of $3.95.

Or, submit your payment, along with form MI-1040-V (Individual Income Tax e-file Payment Voucher). Your tax preparer or computer software will provide a copy of the form. You can e-file your return at any time during the e-file processing season however the MI-1040-V must be included when payment is submitted. Do not include a copy of your return with your payment

 Estimate Payments
Do I need to make estimated tax payments?

The Michigan Income Tax Act requires that a person must make quarterly estimated payments if the person's income tax liability, after credits and withholding, will be $500 or more for the year.

Failure to file and make the required estimated payments may result in an assessment or bill for the penalty and interest being issued by the Michigan Department of Treasury.

Based on the IRS estimated income tax requirements, to avoid penalties for failure to make estimated tax payments, your total tax paid through credits and withholding must be:

90% of your current year's tax liability or 100% of your total prior year's tax liability.  Estimates for taxpayers with an adjusted gross income of $150,000 or more for joint or single filers ($75,000 or more for married filing separate) must equal 90% of the current year's liability or 110% of the previous year's liability.

Farmers, fishermen and seafarers may have to pay estimates but they do have other filing options. For more information refer to the MI-1040 Instruction Booklet.

Penalty is 10% of underpaid tax per quarter or 25% for failing to file estimated payments.

Interest is 1% above the prime rate and is computed monthly.

When are the quarterly estimated tax payments due?

Quarterly tax payments are due April 15, June 15 and September 15 of the taxable year, and January 15 of the next year. Your income tax liability accrues on income as it is earned, rather than being due on April 15 of the next year.

What happens if I fail to file and make the required estimated tax payments?
Failure to file and make the required estimated tax payments may result in a bill or an assessment issued by the Michigan Department of Treasury for penalty and interest.

Penalty is 10% of underpaid tax per quarter or 25% for failing to file estimated payments. Interest is 1% above the prime rate.

Why am I being charged penalty and interest?

Michigan follows the IRS guidelines for estimated tax requirements. Based on the 2015 IRS estimated income tax requirements, to avoid penalties for failure to make estimated tax payments in 2015, your total tax paid through credits and withholding must be:

90% of your total 2015 tax;
or 100% of your total 2014 tax
or 110% if your 2014 adjusted gross income is more than $150,000 ($75,000 for married filing separately).

Penalty is 10% of underpaid tax per quarter or 25% for failing to file estimated payments. Interest is 1% above the prime rate.

Are there any exceptions for filing estimated tax payments for farmers, fishermen or seafarers?

Farmers, fishermen and seafarers may have to pay estimates but they do have other filing options. For more information refer to the MI-1040 Instruction Booklet .

 Farmland
Do taxpayers have to send in copies of their property tax statements and agreements if they e-file?
No, but they may be requested at a later date.
I am opting out of P.A. 116. When is the amount I need to pay back to the State of Michigan computed?
Payback amounts are computed at the end of the current processing year.
What are the most common mistakes made when filing for a Farmland Preservation Tax Credit?
  • Failing to attach the federal schedules, tax statements and agreements to paper returns
  • Entering the incorrect agreement claim number and
  • Indicating the incorrect, or no taxable value on the return

Federal information filters through to Treasury on E-filed returns.

Helpful Hints
1. Ownership indicated on property tax statements must also match ownership of PA116 agreement(s). If claimed agreement does not reflect appropriate ownership, the credit may be reduced or denied.
2. Multiple names on property tax statements indicate joint ownership. The taxpayer may not claim 100% without a signed distribution statement from all other owners. The agreement may be reduced or denied without the signed statement.
3. MI-1040CR or MI-1040CR-7 must be filed to claim a PA116 credit, even if it results in a $0 credit.
4. Only the portion of the tax bill that was issued for agricultural purposes may be claimed for credit regardless of the amount of the parcel that is enrolled in the PA116 program.
4a. The qualifying portion of the parcel will be indicated on the property tax statement(s) as an agricultural or homestead percentage. Follow the instructions in the MI1040CR-5 tax booklet under the section titled "Property Taxes That Can Be Claimed For Credit", to compute the eligible taxes if the bill indicates less than 100% exempt.
5. It may be beneficial to have the taxpayer provide their preparer with copies of the agreement being claimed for accuracy and to avoid processing delays.
There is another home on the farm that I own and it is occupied. The occupant pays nothing for living there and has earnings from the farm (works on the farm). Can the occupant claim the land or a property tax credit?
No, only the owner of the land may claim the land and the property tax credit.
How long does a new agreement have to be on file before the owner can claim the land on a farmland credit claim?
An agreement must be accepted by the Michigan Department of Agriculture by November 1st of the year of the claim. For example, a 2005 MI-1040CR-5 may be filed if an agreement is on file by November 1st, 2005.
What property taxes can be claimed on a farmland credit claim?
Only taxes levied on the land under the farmland agreement for the year of the claim. Prior year taxes paid in the year of the claim may not be claimed.
How will the refund check be issued (whose name will appear on the check)?
If the taxes have been paid and the appropriate box is marked on the return indicating that the taxes have been paid, the check will be issued in the name of the taxpayer. If the taxes have not been paid, or the appropriate box on the return is not marked, the check will be issued in the name of the taxpayer and County Treasurer. If the current year taxes have not been paid but the previous year's have, and the taxpayer submits a copy of the property tax statements for the previous year indicating taxes were paid, the check will be issued to the taxpayer. E-filers should indicate on Schedule CR-5, Column C, that taxes have been paid and the check will be issued to the taxpayer. People that e-file should keep a copy of the paid receipts with their records.
Where can I find my agreement number?

Your agreement number or contract number is found in the lower right corner of each agreement. The first two numbers represent the county where the property is located. The middle set of numbers is the actual contract number. The final six numbers are the year of expiration (i.e. 123105 = December 31, 2005).

Do the taxes for each parcel get claimed on a separate line on the Schedule CR-5?

Each agreement should be listed on a separate line on the schedule. If that agreement consists of multiple parcels the information should be totaled and entered on one line on the Schedule CR-5.

Where should the taxes be listed if the taxes on one parcel are split between multiple agreements?

When the property tax statement includes taxable value and taxes for land on more than one agreement, that taxable value and taxes reported on Schedule CR-5, Columns B and F must be separated according to land in each agreement.

More Department of Agriculture Information.
 Filing Requirements
What are the State of Michigan income tax filing requirements? What forms do we use? When should they be filed?

If you file a federal income tax return, you should also file a Michigan income tax return. You are required to file a Michigan income tax return if the federal adjusted gross income (AGI) is greater than the personal exemption amount on the Michigan income tax return (MI-1040).

Michigan has one income tax form, MI-1040 . The MI-1040 is used for any filer, residents, nonresidents and part-year residents. The MI-1040 is also used when a federal EZ is filed.

Current and prior year Michigan tax forms may be obtained by one of the following methods:

Downloading the desired form from this web site by:

  1. Click on the word “Forms” at the top of the page, under the Department of Treasury banner.
  2. On the next page (Treasury Forms) click on “Income Tax”.
  3. Click on the desired link for Current Year or Previous Year Forms.

Or, forms may be requested by writing to:

Michigan Department of Treasury
Customer Contact
P.O. Box 30757
Lansing, MI 48909

Forms obtained in any of the above mentioned ways may be used to file your Michigan Income Tax returns.

The filing due date is April 15, 2015 for the 2014 tax return.

Do I have tax returns that are missing / delinquent? If so, what years?

To protect your privacy, we will not send confidential account information over the Internet in response to e-mail inquiries.

You may ask about delinquent taxes by using the “Check My Income Tax Info” site.

For privacy and security reasons you will be asked for your social security number, name, tax year, adjusted gross income or total household resources/household income and filing status.

  • Select the option ‘Ask Treasury a Question’
  • To verify your identity, log in using the filer’s social security number and name, then choose the link ‘Ask Treasury a Question’.
  • You will be asked to enter the tax year, your adjusted gross income/total household resources/ household income and filing status. Follow the directions given on the next page to request account specific information.

After verification of your identification, choose the appropriate link to see account specific information or to contact Treasury.

You may also request information by writing to:

Michigan Department of Treasury
Customer Contact
P.O. Box 30058
Lansing, MI 48909

Your inquiry should include your complete name, address, day time phone number, Social Security number, tax type and tax year.

I did not attach my Schedule W or W-2s when I filed my paper return. What should I do now?

There is no action you need to take at this time. If additional information is needed, you will be contacted by mail. In the future, when preparing your return, enter your W-2, 1099 and/or MI-4919 information on the Schedule W . A Schedule W is required with each return.

Does the State of Michigan have a form comparable to the U.S. 1041 (Income Tax Return for Estates and Trusts)? When do I need to file and what is the tax rate?

The State of Michigan does have an MI-1041 form, (Michigan Fiduciary Income Tax Return). This return must be filed if a U.S. 1041 has been filed even if there is no Michigan income tax due. For the 2014 tax year, the tax rate for the fiduciary filers is 4.25%.

Current and prior year Michigan tax forms may be obtained by downloading the desired form(s) from this Web site 24 hours a day 7 days a week.

Note: Some of the forms can be downloaded, completed, printed and mailed. These forms cannot be submitted electronically to the Michigan Department of Treasury.

What are the current tax rate and exemption amounts?

The tax rate for the 2014 tax year is 4.25%

The personal exemption for the 2014 tax year is $4,000.

The special exemption for the 2014 tax year is $2,500.

The qualified disabled veterans exemption for the 2014 tax year is $400.

Do I need to make estimated payments?

The Michigan Income Tax Act requires that a person must make estimated tax payments quarterly if the person's income tax liability, after credits and withholding, will be $500 or more for the year.

Your income tax liability accrues on income as it is earned.

Failure to file and make the required estimated payments may result in an assessment or bill for the penalty and interest being issued by the Michigan Department of Treasury.

Based on the IRS estimated income tax requirements, to avoid penalties for failure to make estimated tax payments, your total tax paid through credits and withholding must be:

90% of your current year's tax liability or 100% of your total prior years tax liability. Estimates for taxpayers with an adjusted gross income of $150,000 or more for joint or single filers ($75,000 or more for married filing separate) must equal 90% of the current year's liability or 110% of the previous year's liability.

Farmers, fishermen and seafarers may have to pay estimates but they do have other filing options. For more information refer to the MI-1040 Instruction Booklet .

Penalty is 10% of underpaid tax per quarter or 25% for failing to file estimated payments.

Interest is 1% above the prime rate and is computed monthly.

What should I do if I received another W-2, or have discovered an error on my return after I filed?

If there is a change to your federal adjusted gross income or the allowable exemptions, Michigan law requires the filing of an amended return.

You will need to file an MI-1040X-12 return, unless you are filing for tax year 2011 or prior. If you are filing for tax year 2011 or prior, you will need to file an MI-1040X return.

You must provide an explanation of the changes on page 2 of the amended return.  Failure to include an explanation may result in a denial of the return. 

An amended return cannot be e-filed.

Include an amended Schedule W form if you are amending because of a corrected W-2 or additional W-2 forms received after you filed your original return.

When do I need to file an MI-1040D, Adjustment of Capital Gains and Losses?

The MI-1040D is filed only when there is a difference between your federal capital gains/losses and Michigan capital gains/losses. A difference will only occur for one of the following reasons:

  • Sale of an asset that was acquired before October 1, 1967, the date the Michigan Income Tax Act went into effect. The gain attributable to the period before October 1, 1967 is not subject to Michigan income tax.
  • The gain from U.S. obligations. Gains/losses from the sale of U.S. obligations are not subject to Michigan income tax.
  • Gains or losses from the sale of property subject to the allocation or apportionment provisions, e.g. sale of real property located in the state of Iowa. Gains/losses from the sale of real property is taxable in the state in which the property is located.

View Information For Mortgage Foreclosure Or Home Repossession And Your Michigan Income Tax Return

How many years do I have to claim an income tax refund, property tax credit or home heating credit for a prior year?

You have four years from the due date of the original return to claim an income tax refund or homestead property tax credit.

A home heating credit claim must be filed by September 30th of the year following the year of the claim.

For example, a home heating credit claim for the year 2014 is due by September 30, 2015. No extension or amendment is allowed on the home heating credit. If the home heating credit claim is filed after September 30th, the credit will be denied.

 Forms
Where can I obtain Michigan Income Tax forms, including estimated tax forms? Can the downloaded form be used to file my taxes?

All forms and instructions may be viewed and/or downloaded from our Web site. In addition, commonly used forms will continue to be available at Treasury offices, most public libraries, Northern Michigan post offices, and Department of Human Services (DHS) county offices.

While some of the forms can be completed online, downloaded, printed and mailed, they cannot be submitted electronically directly to the Michigan Department of Treasury.

Note: For the current year, bulk forms are distributed to libraries and post offices throughout the state before they are available in Treasury offices. Therefore, forms may not be requested through the Treasury Customer Contact center until mid-February.

How can I obtain the Income Allocation for Non-Obligated Spouse form?

The Income Allocation for Non-Obligated Spouse form (743) is automatically generated for mailing to taxpayers when one person on a jointly filed return is potentially liable for a debt.

Due to tax laws, this form is not sent out in advance. It is not available for download on our Web site and requests for a duplicate form cannot be honored.

Taxpayers have 30 days from the date on their letter to complete and file the form. Failure to file the completed form within 30 days will result in the entire refund, if needed, being applied to the debt.

View more NOS Information

Where can I obtain city/county and other states' income tax forms?

Links to some Michigan cities are available on this web site. If the tax forms are not available on the web site, you will need to contact the city/county in question and they will mail you the required forms. You may obtain the telephone number of a specific city/county by calling your Telephone Directory Assistance or by looking in the Government section of your local telephone book. State Tax Agency Websites
- courtesy of the Federation of Tax Administrators

Does the State of Michigan have a substitute W-2 form when a W-2 is not received from an employer?
No. The State of Michigan does not receive individual withholding information.  In order to receive credit for Michigan tax withheld, you must obtain this information from your employer.

If your employer is unable to provide a copy of your W-2, you will need to request a substitute  income statement from the Internal Revenue Service.  The substitute IRS form will contain only federal information. You may contact them at 1-800-829-1040, or through their Web site at www.irs.gov.
Non-Obligated Spouse Information
Purpose of the Income Allocation for Non-Obligated Spouse Form 743

The form is used when the Michigan Department of Treasury holds a joint income tax refund or homestead property tax credit payment for an amount owed by one spouse for the following:

  • Taxes
  • Other debts to the state (e.g., Driver Responsibility, Probation fees, etc.)
  • Child support owed to the Friend of the Court,
  • Internal Revenue Service levy, or
  • A garnishment or court order

The form is used to divide the refund amount between both spouses and designate how much of the joint refund can be applied to the debt(s). When both spouses have a debt, each spouse's share of the refund is applied to his/her debt.

In the event that you have multiple debts you may receive a second Income Allocation form to be completed.

When there is more than one debt the refund is applied in the following order:

  1. Taxes owed to Michigan
  2. Other debts owed to Michigan
  3. Debts owed to a third party, which the state is obligated to pay including child support, garnishments, levies and Bureau of Workers' & Unemployment Compensation. These debts are paid in the order in which the request for payment was submitted to the state.
  4. Residual Refund
Note: Treasury Customer Service Representatives are unable to assist with the completion of the Income Allocation for Non-Obligated Spouse Form 743.
What & When to File

If your overpayment is held for a debt, you will receive a personalized Income Allocation for Non-Obligated Spouse Form 743. You must complete and return the form within 30 days from the date on the accompanying letter to the Michigan Department of Treasury. Failure to file the form within the 30 day time period will result in the entire refund, if needed, being applied to the debt.

If you wish to have the entire refund applied to the debt, do not complete the form. Instead, check the box “Apply refund to the debt(s)” provided above the signature area on page 2 of the form. Each spouse must sign and date the form.

If the form does not have both signatures or a signed statement attached, the full refund, if needed, will be applied to the debt.

The Michigan Department of Treasury does not accept Injured Spouse Allocation form 8379. It is an Internal Revenue Service form. The Michigan Income Allocation for Non-Obligated Spouse Form 743 is the only form accepted by the State of Michigan when allocating income between spouses.

The personalized form is the only form that will be accepted.
Under no circumstances will another form be accepted.
Once the form is submitted, no changes will be accepted.

How to Allocate Income

Divide each spouse's share of income by the joint income to determine the income percentage ratio.

Allocate the amounts to the spouse who earned the income as though you had filed separate federal income tax returns.

Jointly earned income is generally allocated equally to each spouse.

Allocate income, adjustments to income, additions, subtractions and deductions to your adjusted gross income as reported on the Michigan return to the applicable spouse.

If one spouse had a zero or negative amount, that amount should be used to reduce the taxable income of the other spouse.

The city tax credit is prorated based on each person's city tax withheld. The credit must be prorated based on the ratio of each spouse's tax withheld to total tax withheld.

A credit for contributions may be shared equally or allocated to the spouse making the contribution.

Qualified Adoption credit and Stillbirth credit amounts are divided equally between both spouses share of income.

Earned Income Credit is prorated based on each spouse's income percentage ratio.

Do not adjust any figures printed on the form by Treasury. An amended Michigan return should be filed only if you made an error on your original return that was not corrected by Treasury.

Note: An incomplete Income Allocation for Non-Obligated Spouse form 743 may result in the entire income tax refund or credit payment being applied to the debt(s). If you have any questions or if any part of the instructions are unclear, please call the number on the letter you received with the form. The form will be considered incomplete if you do not fill out each line in each column.

Claiming Exemptions

Each person is entitled to a personal exemption, including any special exemptions that you would be entitled to claim if separate Michigan returns were filed.

Exemption allowance for dependents must be prorated based on the ratio of each spouse's income to federal adjusted gross income.

You must prorate your dependents even if they belong to one spouse from a previous marriage.

If one spouse had a zero or negative adjusted gross income, or negative taxable income, the other spouse should claim the exemptions.
Deceased

When the primary filer is deceased, the spouse automatically becomes the primary filer.

If the decedent owes the debt, the spouse will still receive a refund – providing the spouse is not liable and the Income Allocation for Non-Obligated Spouse form is completed.

Attach a copy of the death certificate when you return the Income Allocation for Non-Obligated Spouse form.

Homestead Property Tax or Farmland Credit

A homestead property tax or farmland credit is divided equally between both spouses if the property is owned jointly, regardless of whom earned the income.

If the property is owned or leased by one spouse, that spouse may claim the entire credit.

Proof must be furnished at the time the Income Allocation for Non-Obligated Spouse form is filed.

Acceptable proof would be:

  • A copy of the lease for the tax year you are claiming a credit
  • A notarized statement from a landowner
  • A copy of your property tax statements from your local assessor
  • A copy of the deed to the property.
Note: Copies of utility bills and/or mortgage escrow statements are not acceptable proof.

If proof of sole ownership or leasehold is not received with the Income Allocation for Non-Obligated Spouse form 743, the credit will be divided equally between both spouses.

Note: An incomplete Income Allocation for Non-Obligated Spouse form may result In the entire income tax refund or credit payment being applied to the debt(s). If you have any questions or if any part of the instructions are unclear, please call the number on the letter you received with the form. The form will be considered incomplete if you do not fill out each line in each column.
Garnishments / Refund Held For a Debt
If Your Refund is Held to Pay a Debt
See the explanation at the web page: If Your Refund is Held to Pay a Debt.
Information About Serving Income Tax Refund/Credit, Wage, And Vendor Garnishments
See the explanation at the web page: Information About Serving Income Tax Refund/Credit, Wage, And Vendor Garnishments
Non-Obligated Spouse Information
See the explanation at the web page: Non-Obligated Spouse Information
 Home Heating Credit
View information about Home Heating Credits and other Energy Assistance programs, at Home Heating Credit – Filing & Payment Process
Home Heating Credit Information

Why is the amount of my credit different from what I expected?

Before calling or writing, we suggest you use the Home Heating Credit Checklist.


What is the Home Heating Credit?


The Home Heating Credit is a way the State of Michigan helps you pay some of your heating expenses if you are a qualified Michigan homeowner or renter. You should complete the Home Heating Credit Claim form (MI-1040CR-7) to see if you qualify for the credit. The deadline for submitting this form is September 30, 2015.

Given that each taxpayer has unique circumstances that determine their eligibility for the credit, the Department of Treasury encourages you to review the information below and/or contact a tax professional if you have additional questions. 

The credit, for most people, is based on a comparison between either your standard credit allowance or your actual heating costs and total household resources.

The credit is designed to provide assistance to low income, deaf, disabled or blind persons and disabled veterans. Michigan residents who are not in these groups may also qualify for the credit.

 

Who may file a Home Heating Credit Claim?

You may claim a home heating credit if all of the following apply:

  • You occupy a Michigan homestead
  • You own your home or are contracted to pay rent
  • You were NOT a full time student who was claimed as a dependent on another person’s return
  • You did NOT live in college or university operated housing for the entire year
  • You did NOT live in a licensed care facility for the entire year
  • Your income is within the income limits in tables A and B, shown below:

  

Standard Credit

The standard credit computation uses standard allowances established by law. Use Table A above to find the standard allowance for the number of exemptions you claimed. If your heat costs are currently included in your rent or in someone else's name, you must check the box on line 7 of the Home Heating Credit Claim.

You may be eligible to use the Standard method if:

  • You resided in Michigan for any amount of time in the year of claim. You will need to prorate the standard allowance for the time you resided in Michigan if it is less than 12 months.
  • Your heating costs: were included in your rent, were not included in your rent, or your heat bill was in someone else's name.
  • You are claiming heat costs for your Michigan home, not a vacation home or a commercial account.
  • Your total household resources level is within the limits for this credit found in Table A.

Alternate Credit

The alternate credit uses heating costs to compute a home heating credit. Add the amounts you were billed for heat from November 1, 2012 through October 31, 2013 (see instructions for line 11 below). If you buy bulk fuel (oil, coal, wood, or bottled gas), add your receipts to get your total heating cost. Treasury may request receipts to verify your heating costs. You may claim heating costs on your Michigan homestead only. You may not claim heating costs on a vacation home or a home outside of Michigan.

You are NOT eligible to calculate the credit using the Alternate method if:

  • You were not a Michigan resident for a full 12 months for the year of the claim.
  • Your heating costs were included in your rent or in someone else's name at the time you filed your claim.
  • You are claiming heat costs for your vacation home or a commercial account.
  • You are a claimant filing a deceased taxpayer's home heating credit claim.
  • Your total household resources level is above the limits for this credit found in Table B.

What is a "Homestead"?

Your homestead is the place where you have your permanent home. It is the place to which you plan to return whenever you go away. You must be the owner and occupant or be contracted to pay rent and occupy the dwelling. You can only have one homestead at a time. Cottages, second homes and property you own and rent/lease to others does not qualify as a homestead.

Note: College or university operated housing does not qualify as a homestead. This includes dormitories, residence halls and/or apartments.


What are Total Household Resources?

Total household resources include all income received by all household members during the year, including income that might be exempt from federal adjusted gross income. Losses from business activity may not be used to reduce total household resources.

Checklist for Determining Total Household Resources

 

What Are Qualified Health Insurance Premiums?

Qualified Health Insurance Premiums

 

How do I file a Home Heating Credit (MI-1040CR-7)?

If you are required to file a Michigan Individual Income Tax return (MI-1040), submit the Home Heating Credit Claim (MI-1040CR-7) with your MI-1040. If you are not required to file an MI-1040, you may file your Home Heating Credit Claim by submitting form MI-1040CR-7 only. The due date for filing a Home Heating Credit Claim is September 30.

 

Special Situations

1. Shared Housing – If you share a home but are not the owner or you do not have a contract to pay rent, you cannot claim a credit.

When two or more single adults share a home, each may claim a credit if each has contracted to pay rent or owns a share of the home. Each should file a home heating credit based on his or her total household resources and his or her share of the standard allowance. First, determine the standard allowance, from Table A above, by adding the personal exemptions of all the claimants sharing a home. Divide this standard allowance by the number of claimants in the home.

Example: Three men share an apartment. Each has a signed lease and pays 1/3 of the rent. The standard allowance for three exemptions is $763. Each person must use a standard allowance of $254 ($763 ÷ 3 = $254) to compute his credit.

Example, if you are eligible for a special exemption or a dependent exemption: Catherine and Betty share a home and each pay one half of the rent. Catherine is age 59 and Betty is age 65 and totally and permanently disabled. They file separate MI-1040CR-7 claims. They must first divide $607 (the standard allowance for two exemptions) by two. Catherine’s standard allowance is $304 ($607 ÷ 2 = $304).

Betty’s allowance is also $304, however, she qualifies for a special exemption for being disabled (as she is entitled to a disabled exemption until she is eligible for full Social Security at age 66). She may also add an additional $156 to her standard allowance, because the difference between the standard allowance for three exemptions ($763) and the standard allowance for two exemptions ($607) is $156.

$763 - $607 = $156 + $304 = $460

The standard allowance Betty is eligible to claim is $460.

2. Part-Year Resident or Occupied Homestead Less Than 12 Months You must prorate your standard allowance for the number of days you owned or rented and occupied your Michigan homestead. For example, you moved to Michigan on September 1. It is 122 days from September 1 to December 31. Divide 122 by 365 days and multiply the result by your standard allowance. Enter the prorated standard allowance on line 35 of your claim. If you are a part-year resident, you must include all income received from any sources while a Michigan resident in total household resources.

3. Adult Foster Care, Licensed Home for the Aged, Nursing Home, and Substance Abuse Treatment Centers If you live in a licensed care facility, generally you do not qualify for the home heating credit. Licensed care facilities include adult foster care homes, licensed homes for the aged, nursing homes, and substance abuse treatment centers. Subsidized senior citizen apartments are not licensed care facilities. If you live in a subsidized senior citizen apartment, you may apply for a credit.

If you lived in a licensed care facility only part of the year, you could qualify for a partial credit for the period you lived outside the facility. (See prorating instructions for a part-year owner or renter on page 5 of the MI-1040CR-7 Booklet.) If your spouse lives in a licensed care facility and you live in the family homestead, you may still qualify for a credit. File a joint credit claim and do not check a box on line 12.

If you are single and maintain a homestead (that is not rented to someone else) while living in an adult foster care, licensed home for the aged, nursing home or substance abuse treatment center, you may claim a credit for the heating costs paid on your homestead. You must provide proof of heating costs paid on your homestead.

4. Deceased Claimants If the taxpayer died during 2014, the personal representative may claim the standard heating credit but may not claim the alternate heating credit. If your spouse died in 2014, use the same number of exemptions you would have used had your spouse lived all year.

The surviving spouse may file a joint claim for 2014. Write your name and the deceased’s name and both Social Security numbers on the MI-1040CR-7. Write "DECD" after the deceased’s name. You must report the deceased’s income. Sign the claim on the deceased’s signature line, write "Filing as surviving spouse." Enter the deceased’s date of death in the "Deceased Taxpayers" box on the bottom of page 2 of the form.

If filing as a personal representative or claimant for a single deceased taxpayer or when both taxpayers are deceased:

  • You must attach a U.S. Form 1310 or Michigan Claim for Refund Due a Deceased Taxpayer (MI-1310) and a death certificate
  • Enter the name of the deceased person(s) in the Filer and Spouse name fields with "DECD" next to the name(s) and the representative’s or claimant’s name, title and address in the home address field
  • Use the deceased’s Social Security number on the form
  • Enter date(s) of death in the designated boxes on bottom of page 2
  • You must prorate for the number of days from January 1 until the date of death, see page 5 for prorating credit.

Common Mistakes to Avoid

Mistakes may delay your credit payment. Some common errors are:

  • Filing after the deadline of September 30th
  • Entering name and/or address incorrectly
  • Illegible writing
  • Incorrect or missing social security number(s) for eligible dependents
  • Incorrect or missing age for eligible dependents (if child is less than one year old, enter 1 for age)
  • Incorrect Social Security number(s)
  • Failure to mark box 7 (You must mark this box if your heating costs are currently included in your rent or is your heat service in someone else’s name.)
  • Entering figures on the wrong lines or not entering figures on required lines
  • Mistakes in computing your credit (Addition, subtraction, etc.)
  • Entering incorrect heat amount
  • Failure to report total household resources from all sources or entering monthly amount instead of annual amount

Payment Process

If you are responsible for paying your heating bills, State law requires Treasury to issue your credit in the form of a State of Michigan Energy Draft. You can only use the draft to pay heat bills. Give the draft to your enrolled heat provider who will apply it to current or future heating bills for your home. If the amount of your draft is more than you owe, you may request a refund of the difference by checking the box on line 15. Your heat provider has 14 days to pay your refund, without interest.

If you receive a draft and your heat provider is not enrolled in Michigan’s energy assistance program, or if you use bulk fuel and have already bought your energy supply for the year, return the draft with a note of explanation to Treasury. Treasury will review your explanation and, if appropriate, reissue your credit in the form of a check. If you are notified of denial, you have the right to a hearing.

If you receive a draft and your heat is included in your rent, or your heat service is in someone else’s name, return the draft with a note of explanation and a copy of your lease agreement(s) and/or property tax statements to: Michigan Department of Treasury, PO Box 30757, Lansing, MI 48909. Treasury will review your explanation and, if appropriate, reissue your credit in the form of a check. If you are notified of denial, you have the right to a hearing.

If you receive FIP assistance or other DHS benefits or you are enrolled with DHS for direct payment, the law requires your credit to be sent directly to your heat provider, who will then apply it to your account.

If your heat is provided by DTE Energy, Consumers Energy, or SEMCO Energy Gas, your home heating credit may be sent directly to your heat provider.

 

How do I Check the Status of my Home Heating Credit Claim?

To check the status of your refund, use the Check My Income Tax Info site.

 

For privacy and security reasons you will be asked for your social security number, name, tax year, total household resources and filing status.

  1. Select the option 'Check My Tax and Refund Information
  2. To verify your identity, log in using the filer's social security number and  name,then choose the link 'Check My Tax and Refund Information'
  3. You will be asked to enter the tax year, your total household resources and filing status. Follow the directions given on the next page to check the status of your refund

Frequently Used Home Heating Credits Forms and Instructions

 

Other Helpful Information

 

Homestead Property Tax Credit The Property Tax Credit is a way the State of Michigan helps you pay some of your property taxes if you are a qualified Michigan homeowner or renter. The credit is designed to give the greatest property tax relief to senior citizens, disabled or blind persons and disabled veterans as well as the surviving spouse of a veteran. Michigan residents who are not in these groups may also qualify for the credit. Homestead Property Tax Credit Information

 

How to Choose a Tax Preparer Who's Right for You Need assistance in completing your forms? You can hire a professional to prepare your taxes or you might qualify for free (or low fee) tax preparation services. Choosing a Tax Preparer

When should I file for the home heating credit?

A home heating credit claim must be filed by September 30th of the year following the year of the claim. For example, a home heating credit claim for the year 2014 is due by September 30, 2015. No extension is allowed on the home heating credit. If the home heating credit claim is filed after September 30th, the credit will be denied.

How do I file for a home heating credit?

You must submit a completed Michigan home heating credit claim (Form MI-1040CR-7   PDF icon).

The quickest way to file your MI-1040CR-7 form is with e-file .

Note: When you e-file with your heat provider do not include a copy of your MI-1040CR-7 form when mailing your form MI-8453, Michigan Individual Income Tax Declaration for Electronic Filing to Michigan Department of Treasury.

Who can file a home heating credit claim?

To be eligible:

  • Your total household resources level falls within the limits for this credit found in Table A or B .
  • Your homestead must be in Michigan, and where you maintain a permanent residence.
    (Note: You can have only one homestead at a time and you must be the occupant as well as the owner or renter.)
  • You are not a full-time student who is claimed as a dependent on another person's income tax return.
  • You did not live in a Care facility for the entire tax year: See Exceptions for Licensed Care Facilities  PDF icon
    Care facilities:
    • Adult Foster Care Home
    • Licensed home for the aged
    • Nursing home
    • Substance abuse treatment center

  • Special Situations:
What is the definition of total household resources?

Beginning in 2012, Household Income is replaced with Total Household Resources.

Total household resources are the total income (taxable and nontaxable) of both spouses or of a single person maintaining a household, excluding the following:

  • net business and farm losses
  • net rent and royalty losses
  • any carryback or carryover for a net operating loss

Household income is the total income (taxable and nontaxable) of both spouses or of a single person maintaining a household.

View a partial list of items included in Michigan taxable income.
The list serves as a guide and is not intended to replace the law.

Should I use the standard or alternate method to calculate my home heating credit?

If eligible, it is important to calculate the credit using both methods. The alternate method may calculate to a larger credit than using the standard method.

You may be eligible to use the Standard method if:

  • You resided in Michigan for any amount of time in the year of claim. You will need to prorate the standard allowance for the time you resided in Michigan if it is less than 12 months.
  • Your heating costs: were included in your rent, were not included in your rent, or your heat bill was in someone else's name.
  • You are claiming heat costs for your Michigan home, not a vacation home or a commercial account.
  • Your total household resources level falls within the limits for this credit found in Table A.

Computing the Standard Credit   PDF icon

You are NOT eligible to calculate the credit using the Alternate method if:

  • You were not a Michigan resident for a full 12 months for the year of the claim.
  • Your heating costs were included in your rent or in someone else's name at the time you filed your claim.
  • You are claiming heat costs for your vacation home or a commercial account.
  • If you are a claimant filing on behalf of a taxpayer who died during the tax year.
  • Your total household resources level falls above the limits for this credit found in Table B .

Computing the Alternate Credit PDF icon

Home Heating Credit and Shared Housing Situations

How do I change my address?

To change your address, use the “Check My Income Tax Info” site.

For privacy and security reasons, you will be asked for your social security number, name, tax year, adjusted gross income or total household resources and filing status.

  1. Select the option “Change my address”.
  2. To verify your identity, log in using the filer’s social security number and name, then choose the link “Change my address”.
  3. You will be asked to enter the tax year, your adjusted gross income/total household resources and filing status.
  4. Follow the directions given on the next page to ask your question

To change your address by mail, please send the information to:

Michigan Department of Treasury
Customer Contact
P.O. Box 30058
Lansing, MI 48909

Include your name, social security number, old address, new address and daytime phone number.

What common mistakes should I avoid when completing my home heating credit claim?

Common mistakes will delay your credit payment or may result in your credit being denied.

Some common errors are:

  • Filing after the deadline of September 30th
  • Using a name and address label with incorrect information
  • Illegible writing
  • Incorrect or missing social security number(s) for eligible dependents
  • Incorrect or missing age for eligible dependents (if child is less than one year old, enter 1 for age)
  • Incorrect Social Security number(s)
  • Failure to mark box 7 if your heating costs are currently included in your rent or if your heat service is in someone else’s name
  • Entering figures on the wrong lines
  • Mistakes in computing your credit (addition, subtraction, etc.)
  • Entering incorrect heat amount
  • Failure to report total household resources from all sources.

View Checklist for Determining Total Household Resources   PDF icon

How do I check the status of my home heating credit?

To check the status of your refund, use the “Check My Income Tax Info” site.

For privacy and security reasons, you will be asked for your social security number, name, tax year, adjusted gross income or total household resources and filing status.

  1. Select the option “Check My Tax and Refund Information”.
  2. To verify your identity, log in using the filer’s social security number and name, then choose the link “Check My Tax and Refund Information”.
  3. You will be asked to enter the tax year, your adjusted gross income/total household resources and filing status.
    Follow the directions given on the next page to check the status of your refund.
What should I do if my home heating credit has been processed but I have not received the energy draft that was issued?

You must allow 30 days before submitting a customer service request by using the “Check My Income Tax Info” site.

For privacy and security reasons, you will be asked for your social security number, name, tax year, adjusted gross income or total household resources and filing status.

  1. Select the option “Ask Treasury a Question”.
  2. To verify your identity, log in using the filer’s social security number and name, then choose the link “Ask Treasury a Question”.
  3. You will be asked to enter the tax year, your adjusted gross income/total household resources and filing status.
    Follow the directions given on the next page to submit a detailed description of the situation with your question

If your address is incorrect with Treasury, you can change your address by using the “Check My Income Tax Info” site.

  1. Select the option “Change my address”.
  2. To verify your identity, log in using the filer’s social security number and name, then choose the link “Change my address”.
  3. You will be asked to enter the tax year, your adjusted gross income/total household resources and filing status. Follow the directions given on the next page to submit a detailed description of the situation with your question

If your address is correct for Treasury, please verify with the post office that they have the correct address on file. It may be helpful to inform them if you are experiencing difficulty receiving a State of Michigan check.

Note: If your address has changed, include your new address and a day time phone number in your request. It is also recommended that you notify the post office.

Telephone help is available for the Deaf or Hearing Impaired using teletypewriter (TTY) equipment through the Michigan Relay Center by calling 800-649-3777 or 711 between the hours of 8:00 a.m. and 4:45 p.m.

What should I do if my heat provider will not accept my damaged energy draft?

Return the draft with an explanation requesting a replacement draft, along with a day time phone number to:

Michigan Department of Treasury
Support Services - RRF
P.O. Box 30757
Lansing, MI 48909

The information will be reviewed and you will receive a response within 120 days.

What should I do if I was sent an energy draft but my heat costs are included in my rent or the heat account is in someone else's name?

Return the draft with a letter explaining why it cannot be used. Include supporting documentation (lease agreement, property tax statements, etc.) and your daytime phone number.

Send to:
Michigan Department of Treasury
Support Services - RRF
P.O. Box 30757
Lansing, MI 48909

The information will be reviewed and you will receive a response within 120 days.

I was sent an energy draft but I can't use it because…
  • I have moved since filing my home heating credit claim, and I no longer have a heat account
  • I no longer live in Michigan
  • I cut my own wood for heat
  • My heat provider does not accept energy drafts

Return the draft with a letter explaining why it cannot be used.  Include supporting documentation (lease agreement, property tax statements, proof of heat costs, etc.) and your daytime phone number.

Send to:
Michigan Department of Treasury
Support Services - RRF
P.O. Box 30757
Lansing, MI 48909

The information will be reviewed and you will receive a response within 120 days.

What should I do with my expired energy draft?

Return the draft with a letter explaining why it cannot be used. Include supporting documentation (lease agreement, property tax statements, proof of heat costs, etc.) and your daytime phone number.

Send to:
Michigan Department of Treasury
Support Services - RRF
P.O. Box 30757
Lansing, MI 48909

The information will be reviewed and you will receive a response within 120 days.

What should I do with the energy draft if the taxpayer is now deceased?

Return the draft with a letter explaining why it cannot be used.  You must submit a Claim for Refund Due a Deceased Taxpayer (Form MI-1310) and a copy of the death certificate or court issued Letters of Authority.  Also include supporting documentation (lease agreement, property tax statements, etc.) and your daytime phone number.

Send to:
Michigan Department of Treasury
Support Services - RRF
P.O. Box 30757
Lansing, MI 48909

The information will be reviewed. You will receive a response within 120 days.

Can I still use my energy draft that includes the name of my deceased spouse?

Yes, you can still use the draft if your spouse's name is on the heat account.  If your heat provider will not accept it, return the draft with a letter explaining why it cannot be used.  Include supporting documentation (death certificate, lease agreement, property tax statements, etc.) and your daytime phone number.

Send to:
Michigan Department of Treasury
Support Services - RRF
P.O. Box 30757
Lansing, MI 48909

The information will be reviewed and you will receive a response within 120 days.

Can I still use my energy draft if there is a mistake on it?

If the mistake is small (typographical error, transposed numbers or letters) the heat provider may honor the draft. 

If your heat provider will not accept it, return the draft with a letter explaining why it cannot be used and  identify the corrections to be made.  Include supporting documentation (e.g., name change, lease agreement, property tax statements) and your daytime phone number. 

Send to:
Michigan Department of Treasury
Support Services - RRF
PO Box 30757
Lansing, MI 48909. 

You will receive a response within 30 to 45 days.

What should I do if I lost my energy draft?

You must allow 30 days before calling Customer Service at 517-636-4486, or submitting a customer service request by using the “Check My Income Tax Info” site.

For privacy and security reasons, you will be asked for your social security number, name, tax year, adjusted gross income or total household resources and filing status.

  1. Select the option “Ask Treasury a Question”.
  2. To verify your identity, log in using the filer’s social security number and name, then choose the link “Ask Treasury a Question”.
  3. You will be asked to enter the tax year, your adjusted gross income/total household resources and filing status. Follow the directions given on the next page to ask your question

An affidavit will be mailed to you to complete, sign and return. You can expect to receive a replacement energy draft 30 to 45 days after Treasury receives your completed affidavit.

What should I do if my heat provider has no record of receiving my energy draft that I mailed to them?

You must allow 90 days for your draft to be applied to your heat account before calling Customer Service 517-636-4486, or submitting a customer service request by using the "Check My Income Tax Info" site.

For privacy and security reasons you will be asked for your social security number, name, tax year, adjusted gross income or total household resources/household income and filing status.

Click on the above link and follow these steps:

1.  Select the option 'Ask Treasury a Question'
2.  To verify your identity, log in using the filer's social security number and name, then choose the link 'Ask Treasury a Question'.
3.  You will be asked to enter the tax year, your adjusted gross income/total household resources and filing status. Follow the directions given on the next page to submit a detailed description of the situation with your question.

If the draft has been paid, you will be given the information needed for your heat provider to locate the payment and credit your account. If the draft has not been paid, you will be given information on how to have the draft replaced.

Telephone help is available for the Deaf or Hearing Impaired using teletypewriter (TTY) equipment through the Michigan Relay Center by calling 1-800-649-3777 or 711 between the hours of 8:00 a.m. and 4:45 p.m.

What should I do if I am having problems getting credit for my energy draft or obtaining a refund of the overpayment from my heat provider?

The Michigan Public Service Commission is empowered to enforce the home heating credit law as it pertains to regulated utilities. If your heat provider is not a regulated utility, they will refer you to the proper agency for assistance. Visit the Public Service Commission Web site for Information about Consumer Complaints

View information about Home Heating Credits and other Energy Assistance programs.
 Homestead Property Tax Credit
Who qualifies for a property tax credit?

You may be eligible to claim a property tax credit if all of the following apply:

  • Beginning in 2012:
    • Your homestead is in Michigan
    • You were a resident of Michigan for at least six months during the year
    • You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied
    • If you own your home, your taxable value is $135,000 or less
    • Your total household resources are $50,000 or less. Part-year residents must annualize total household resources to determine if the credit reduction applies.
      (If 100% of your total household resources are received from the Department of Human Services, you do not qualify)
  • For 2011 and prior years:
    • Your homestead is in Michigan
    • You were a resident of Michigan for at least six months during the year
    • You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied
    • Your household income is $82,650 or less. Part-year residents must annualize household income to determine if the credit reduction applies.
      (If 100% of your household income is received from the Department of Human Services, you do not qualify)
What is a homestead?

A homestead is the primary dwelling of an individual who is the occupant as well as the owner or renter who is contracted to pay rent. You may not claim a property tax credit on a vacation/second home or an income property.

What is taxable value?
The taxable value is the value on which property taxes are calculated. It can be found on the property tax statement or by contacting the city/township/county office.
What if I use an incorrect taxable value?
Your credit may be reduced or denied as a result of incorrect information. If your credit is adjusted, submit copies of your summer and winter property tax statements for the year of the claim showing the correct taxable value. Send your response to the address listed on the document you received that explained the adjustment made to your return.
What is a millage rate and where do I find it?

Millage rate is the rate at which property taxes are levied on property. A mill is 1/1000 of a dollar. Property taxes are computed by multiplying the taxable value of the property by the number of mills levied.

The millage rate can be found on the property tax statement or by contacting the city/township/county office.

What does "taxes levied" mean?
Taxes imposed or billed. The property tax credit is based on taxes levied for the year of the claim regardless of when the taxes are paid. Taxes levied cannot include special assessments or penalty/interest fees, if a Homestead Property Tax Credit MI-1040CR is being filed.
What is a special assessment?

Special assessments are charges that are not based on the taxable value of your home. Special assessments can appear on your property tax statements with a millage rate of 0.0000 or no millage rate at all. If you have any questions regarding special assessments in your area, please contact your city/township/county office.

The following is a partial list of examples for special assessments:

  1. Drains
  2. Sewers
  3. Roads
  4. Solid waste fee
  5. Delinquent water
  6. Sidewalk
  7. Street lights
  8. Pavements
  9. Recycling
  10. Milk River
  11. Rubbish
  12. Garbage Pick-up
  13. DR F012
  14. DR B030 Blakely
  15. Emit Rd Maintenance
  16. X2043

See Sample Property Tax Statement.

When can I claim special assessments?

Most special assessments for drains, sewers, and roads, etc. may not be included as property taxes levied. You may include special assessments only if they are billed using a millage rate or are based on taxable value and are either levied in the entire taxing jurisdiction or they are used to provide police, fire or advanced life support services and are levied township-wide, except for all or a portion of a village. If you have any questions regarding your special assessments and whether they can be included as taxes levied on your homestead property tax credit claim please contact your city/township/county office. Sample Property Tax Statement

Following are some examples of special assessments:

  1. Drains
  2. Sewers
  3. Roads
  4. Solid waste fee
  5. Delinquent water
  6. Sidewalk
  7. Street lights
  8. Pavements
  9. Recycling
  10. Milk River
  11. Rubbish
  12. Garbage Pick-up
  13. DR F012
  14. DR B030 Blakely
  15. Emit Rd Maintenance
  16. X2043
Where do I find the school district code?

The school district code can be found on your property tax statement, in the MI-1040 or MI-1040CR-2 booklets or by contacting your city/township/county office.

See Michigan Counties List .

Where do I get property tax statements if I only received a mortgage interest statement?
You can request copies of property tax statements from your city/township/county office.

Some cities/townships/counties may offer copies of the property tax statements on line. Check their official websites.

Does college or university housing qualify for a homestead credit?
No.
What is tax exempt housing?
Tax exempt housing is property on which the owner is not required to pay property taxes. Individuals who live in tax exempt housing are not eligible for a homestead property tax credit. To verify if a property is tax exempt, contact your local city/township/county office.
Can a property tax credit be filed for prior years?
A claim for refund and/or credit must be made within 4 years from the due date set for filing the annual return. For example, the 2012 property tax credit must be filed by April 15, 2017.
What is the definition of total household resources or household income?

Beginning in 2012, household income has been replaced with total household resources . Total household resources are the total income (taxable and nontaxable) of both spouses or of a single person maintaining a household, excluding the following:

  • net business and farm losses
  • net rent and royalty losses
  • any carryback or carryover for a net operating loss

Household income is the total income (taxable and nontaxable) of both spouses or of a single person maintaining a household.

View a partial list of items included in Michigan taxable income . The list serves as a guide and is not intended to replace the law.

See Home Heating Credit And Shared Housing Situations for updated information.

Are medical premiums paid through payroll deduction on pre tax wages an allowable subtraction from household income?
No.
Can I subtract my Long Term Care amount along with my medical premiums on the Property Tax Credit?

No.

When do I realize a capital gain on the sale of my home, and how do I calculate the gain?
Please refer to IRS Publication 523 Selling Your Home.
Do I have to claim a capital gain for the sale of my home on the property tax credit even if I do not have to pay taxes on the capital gain?
Yes, even though the capital gains may not be included in the adjusted gross income. It must be included in total household resources/household income if a Homestead Property Tax Credit MI-1040CR is being filed.
Do I need to include my spouse's income on my property tax credit if we lived together all year and I file married filing separately?

Yes. You can only apply for one property tax credit per household. Income from both spouses must be included on the property tax credit if you and your spouse shared a home the entire year.

Do I need to include my spouse's income on my property tax credit if we only lived together part of the year?

You can use form 5049, Worksheet for Married, Filing Separately and Divorced or Separated Claimants to help you prorate the share of taxes or rent used to complete the homestead property tax credit.

If I got married during the year, how do I compute my property tax credit?

If you married during the tax year and are filing a Homestead Property Tax Credit (form MI-1040CR), combine each spouse's share of taxes or rent for the period of time he or she lived in separate homesteads. Then add the prorated share of taxes or rent for the time you live together in your marital home.

How do single adults sharing a home compute their credit?

If two or more individuals:

  • share ownership and occupy the homestead or
  • are contracted to pay rent and occupy the rental property

Each may file a claim based only on his/her prorated share of the property taxes or rent paid and his/her own total household resources. Property taxes levied or monthly rent must be divided equally between each individual. Any gifts of cash or expenses paid on your behalf must be included in total household resources.

If only one individual:

  • owns the home or
  • is contracted to pay rent

Only that individual may file a property tax credit. The individual claiming the credit must include any gifts of cash or expenses paid on his/her behalf. This includes contributions from others living in the home used to pay household expenses (rent, taxes, utilities, etc.).

Does a resident of a nursing home or foster care home use taxes or rent to compute a credit?

Complete the Alternate Housing Facilities section of the MI-1040CR form if claiming nursing home or adult foster care home taxes. If the facility pays local property taxes, you may claim your portion of those taxes for credit. You may not claim rent.

If both you and your spouse live in the facility, add your shares together. Or, if you still maintain a homestead (that is not rented to someone else) while both of you live in a nursing home or adult care facility, you may claim either your homestead or your share of the facility's property tax, but not both. Use the one that gives you the larger credit. If you lived in the facility only part of the year, multiply your share of the taxes levied by the portion of the year you lived at the facility.

If one spouse lives in a nursing home or foster care home and the other spouse maintains a homestead, you may file a joint credit claim. Combine the tax for the homestead with the allocated share of the property taxes for the resident of the nursing home or adult foster care home to compute your claim.

If you are single and maintain a homestead (that is not rented to someone else) while living in a nursing home or adult care facility, you may claim either your homestead or your share of the facility's property tax, but not both. Use the one that gives you the larger credit.

What is a senior alternate credit and who qualifies?

The alternate credit is available to renters age 65 or older whose rent is more than 40 percent of his/her total household resources/household income. Individuals who qualify should use both the standard and alternate methods to determine which gives them the larger credit. The worksheet for the Alternate Property Tax Credit For Renters Age 65 And Older can be found in the MI-1040 booklet.

Alternate Credit Estimator

How does the Principal Residence Exemption affect the taxes I claim on my MI-1040CR?
The Principal Residence Exemption may lower your property taxes. If you own and occupy your home, but you have not filed an affidavit with your local assessor, then your real estate taxes may be higher because the bill will include non homestead taxes for school operating millage.

If you have not filed an affidavit and your principal residence exemption is 0%, you may include school operating millage in your property tax credit claim. You may also include the 1% collection fee charged by your city or township.

If your local assessor lowers your property taxes for a prior year's liability through the Board of Review and they refund your overpayment of property taxes, you must deduct the refund from the taxes eligible for credit for the year in which you received the refund.

If my principal residence exemption (P.R.E.) percentage indicated on my tax statement is other than 100% or 0%, how do I determine the amount of property taxes that are eligible for credit?

If your property is less than 100% principal residence exemption (P.R.E.) but greater than 0% P.R.E. you must subtract the School Operating Tax and any special assessments from total taxes levied. Multiply the remaining balance by the P.R.E. percentage indicated on your property tax statement to compute the taxes levied that can be claimed on your MI-1040CR.

Example:

Taxes levied $2,154
Less School Operating -$324
Less Special Assessment -$45
Total = $1,785

Total $1,785 (x) 66% (.66) of P.R.E = $1,178

Taxes allowed for credit = $1,178

My home is a duplex. What part of my taxes are eligible for credit?

If your home is a duplex your property is less than100% principal residence exemption (P.R.E.) but greater than 0% P.R.E. you must subtract the School Operating Tax and any special assessments from total taxes levied. Multiply the remaining balance by the P.R.E. percentage indicated on your property tax statement to compute the taxes levied that can be claimed on your MI-1040CR.

Example:

Taxes levied
$2,154
Less School Operating
-$324
Less Special Assessment
-$45
Total =
$1,785

Total $1,785.00 (x) 50% (.50) of P.R.E = $893.00

Taxes allowed for credit = $893.00

Part of my home is used for business. What part do I claim for taxes?

You may claim the prorated amount of property taxes based on the percentage of your home that is not used for the business. You may not claim the prorated taxes on the business portion of your home. See instructions for Federal Form 8829 to determine the percentage of taxes on the business portion of your home.

If I have vacant parcels that are adjacent or contiguous to my homestead, may I claim the taxes on them?
Yes, unless the parcels are rented to someone else.

If you are claiming multiple vacant parcels that are adjacent and contiguous make sure to use the combined taxable value of all parcels for credit computation.

Why and how did you adjust my property tax credit?

Your return was adjusted based on the information provided and/or information available from other sources.

A detailed explanation was sent describing the adjustments made to your return. If you have additional questions, use the Check My Income Tax Info site.

  1. Select the option 'Ask Treasury a Question'
  2. To verify your identity, log in using the filer's social security number and name, then choose the link 'Ask Treasury a Question'.
  3. You will be asked to enter the tax year, your adjusted gross income/total household resources/household income and filing status. Follow the directions given on the next page to ask your question

Homestead Property Tax Credit Information

If I built a home which was completed part way through the year, what taxes can I claim on my MI-1040CR?
If you built your home, you may use the taxes levied shown on the summer and winter property tax statements in the year of claim. Do not include special assessments. Prorate taxes based on the number of days you owned and occupied the home.

Note: In the year the home was completed, the taxes levied on the home are based on the value of the land only. The following calendar year, the taxes are based upon the assessed value of the land plus the home.

If I bought a home and moved from a rented apartment, what taxes can I claim on my MI-1040CR?
If you bought your home, you may use the taxes levied shown on the summer and winter property tax statements in the year of claim. Do not include special assessments. Prorate taxes based on the number of days you owned and occupied the home. See MI-1040CR lines 45-51

For rent paid, use total rent paid, then prorate the last month of rent based on days of occupancy. You may not claim more than 365 days total.

If I bought my home on a land contract, how do I calculate my homestead property tax credit?
If you purchase your home on a land contract you are considered the owner of the home. Therefore use the total taxes levied on the home in the year of claim for computing the credit.

Note:  Monthly amounts paid per the land contract are not considered rent to be used for the purpose of computing the credit.

If I bought and/or sold my home during the tax year, how do I compute my taxes?

If you bought or sold your home, the property taxes for both homes must be prorated. Complete Part 3 (lines 45-51) of the MI-1040CR to determine the taxes that can be claimed. Use only taxes levied in the year of the claim, then prorate taxes based on days you owned and occupied the home as your principal residence. Do not include the taxes paid as shown on your settlement statement. You may not claim more than 365 days total. If you sold a home, you must also include the capital gain from the sale of your home in total household resources/household income even if the capital gains are not included in adjusted gross income.

If I sold my home and moved to a rented apartment, what taxes can I claim on my MI-1040CR?
If you sold your home, you may use the prorated taxes levied based on the number of days you owned and occupied the home. (Use the total rent paid, prorating for any partial month based on the number of days you occupied the home). You may use the total taxes levied in the year of claim, then prorate total taxes based on days you owned and occupied and use prorated annual rent based on days of occupancy. You may not claim more than 365 days total. If you sold a home, you must also include the capital gain from the sale of your home in total household resources/household income even if the capital gains are not included in adjusted gross income.

    Example:

Bob and Susan sold their home October 2, 2013 and moved to an apartment where they paid $350 per month for the rest of the year. The annual taxes levied on the home were $1,860.

Step 1: Calculate the prorated property taxes levied for the 275 days they owned the home. Divide 275 by 365 to get a percentage of 75%. Multiply the annual taxes levied of $1,860 by 75% totaling $1,395 of prorated taxes.

275/365 = 75%
$1,860 x 75% = $1,395

Step 2: Calculate the prorated rent for the 91 days they rented the apartment. Multiply monthly rent $350 by 12 months for annual rent of $4,200. Divide 91 by 365 to get a percentage of 25%. Multiply the annual rent of $4,200 by 25% totaling $1,050 of prorated rent.

$350 x 12 = $4,200
91/365 = 25%
$4,200 x 25% = $1,050

If I sold a home and built a new home which was completed part way through the year, what taxes can I claim on my MI-1040CR?
If you sold your home, the property taxes for both homes must be prorated. Complete Part 3 (lines 45-51) of the MI-1040CR to determine the taxes that can be claimed. Use only taxes levied in the tax year of the claim and then prorate taxes based on days you owned and occupied the home as your principal residence. You may not claim more than 365 days total. If you sold a home, you must also include the capital gains from the sale in total household resources/household income even if the capital gains are not included in adjusted gross income.

Note: In the year the home was completed, the taxes levied on the home are based on the value of the land only. The following calendar year, the taxes are based upon the taxable value of the land plus the home.
If I moved during the year, can I still claim a property tax credit?
You may be eligible to claim a property tax credit if all of the following apply:

Beginning 2012:

  • Your homestead is in Michigan.
  • You were a resident of Michigan for at least six months during the year.
  • You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied.
  • If you own your home, your taxable value is $135,000 or less.
  • Your total household resources are $50,000 or less. Part-year residents must annualize total household resources to determine if the credit reduction applies.
    (If 100% of your total household resources are received from Department of Human Services you do not qualify)

For 2011 and prior years:

  • Your homestead is in Michigan.
  • You were a resident of Michigan for at least six months during the year.
  • You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied.
  • Your household income is $82,650 or less. Part-year residents must annualize household income to determine if the credit reduction applies.
    (If 100% of your total household resources are received from Department of Human Services you do not qualify)
I moved into or out of Michigan during the year. Could I qualify for a property tax credit?

You may be eligible to claim a property tax credit if all of the following apply

For years 2012 and forward:

  • Your homestead is in Michigan
  • You were a resident of Michigan for at least six months during the year
  • You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied
  • If you own your home, your taxable value is $135,000 or less
  • Your total household resources are $50,000 or less. Part-year residents must annualize total household resources to determine if the credit reduction applies.
    (If 100% of your total household resources are received from the Department of Human Services, you do not qualify)

For 2011 and prior years:

  • Your homestead is in Michigan
  • You were a resident of Michigan for at least six months during the year
  • You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied
  • Your household income is $82,650 or less. Part-year residents must annualize household income to determine if the credit reduction applies.
    (If 100% of your household income is received from the Department of Human Services, you do not qualify)
If I move and claim a property tax credit, what amount of property taxes do I use?
If you bought or sold your home, you must prorate your taxes based on the number of days you owned and occupied each home. You may not claim more than 365 days total. If you sold a home, you must also include the capital gain from the sale of your home in total household resources/household income even if the capital gains are not included in adjusted gross income. Do not include the taxes paid in closing costs on your settlement statement.
How much farmland may I claim as my homestead?

If the gross receipts of the farming operation exceed total household resources/household income you may claim all of your farmland taxes. The parcels do not have to be adjacent or contiguous to your home, unless they are rented out to someone else.

If gross receipts from farming are less than total household resources/household income and you have lived on the land 10 years or more, all of the adjacent and contiguous farmland is considered homestead.

If gross receipts from farming are less than total household resources/household income and you have lived on the land less than 10 years not more than 5 acres of adjacent and contiguous farmland is considered homestead.

What is the Classification of Real Property?
What is the Classification of Real Property? PDF Icon
What is a transfer of ownership?
See Bulletin 2013-5
What are the Qualified Agricultural Property Exemption Guidelines?
See Qualified Agricultural Property Exemption Guidelines
I participated in the Step Forward Michigan program. How does this affect my Michigan individual income tax return, homestead property tax credit, and home heating credit?

Funds from the Michigan State Housing and Development Authority (MSHDA) Step Forward Michigan program are generally not reported in federal adjusted gross income; therefore, they are also not included in Michigan taxable income.

In the Step Forward Michigan program, payments are made on behalf of the homeowner directly to the mortgage-holder bank. For purposes of the Michigan homestead property tax credit and home heating credit, payments under the Step Forward Michigan program are considered relief in kind from a governmental agency and should not be included in Total Household Resources.

If the recipient doesn't comply with the terms of the program, the assistance may have to be paid back and would be treated as a loan. Loans are not included in Michigan taxable income or Total Household Resources.

However, if the recipient is unable to repay the loan and the debt is forgiven, to the extent the cancelled debt is included in adjusted gross income, that amount should be included in Michigan taxable income and in Total Household Resources.

 Identity Theft
I do not have any filing requirements with Michigan but I received a Michigan Department of Treasury check. What should I do?

Write “VOID” across the front of the check and include a letter of explanation as to why you are returning the check.

Mail to:

Michigan Department of Treasury
Office of Financial Services
P.O. Box 30788
Lansing, MI 48909

Once your information is received, we will place an informational “stop” on your account to prevent refunds from being issued on fraudulently filed returns. Future returns filed under your name and Social Security number will require verification of your identity before a refund is issued.

I do not have any filing requirements with Michigan but I received a letter from the Michigan Department of Treasury. What should I do?

Respond in writing to the letter indicating that you do not have filing requirements with Michigan, have not filed a Michigan return, and will not be filing a Michigan return.

Mail to:

Michigan Department of Treasury
Office of Financial Services
P.O. Box 30788
Lansing, MI 48909

Once your information is received, we will place an informational “stop” on your account to prevent refunds from being issued on fraudulently filed returns. Future returns filed under your name and Social Security number will require verification of your identity before a refund is issued.

I have filing requirements with the state of Michigan and received a Michigan income tax refund check but have not filed a Michigan return. What should I do?

Write "VOID" across the front of the check and include a letter of explanation as to why you are returning the check.

Mail to:

Michigan Department of Treasury
Office of Financial Services
P.O. Box 30788
Lansing, MI 48909

Click here for instructions once you are ready to file your return.

I am investigating a victim of identity theft and need to request copies of returns filed to the State of Michigan. What should I do?

Your request is required to be handled by the Michigan Department of Treasury Disclosure Office. You can contact Disclosure at 517-636-4239. You may also submit Request and Consent for Disclosure of Michigan Tax Return Information, form 4095 with your request in writing via fax at 517-636-5340 or by mail to:

Michigan Department of Treasury
Attn: Disclosure
430 W Allegan
Lansing, MI 48922
I believe I am a victim of identity theft, have filing requirements with Michigan and need to file my return. What should I do?

You must mail a paper form.

Mail refund, credit, or zero due returns to:
Michigan Department of Treasury
Lansing, MI 48956

If you owe tax, mail your return and payment to:
Michigan Department of Treasury
Lansing, MI 48929

Also include the following:

  • A statement (or an IRS ID Theft Affidavit if possible) indicating what occurred
  • Copy of your driver’s license/acceptable ID
  • Copy of your Social Security card
  • Copy of your federal return with schedules
  • Copy of your lease or property tax bill (if filing a Michigan Property Tax Credit, MI-1040CR)
  • Copy of your heat bill (if filing a Michigan Home Heating Credit, MI-1040CR-7)
  • Copy of your W2s on an 8 ½”X 11” piece of paper (This step is important due to the way mail is processed)

Once your information is received, we will place an informational “stop” on your account to prevent refunds from being issued on fraudulently filed returns. Future returns filed under your name and Social Security number will require verification of your identity before a refund is issued.

I have filing requirements with the state of Michigan and received a letter but have not filed a Michigan return. What should I do?

Respond to the letter indicating that you have not filed your return and that you will be filing in the future.

Click here for instructions once you are ready to file your return.

I received a letter from Michigan Department of Treasury that was addressed to me and an individual I do not know. What should I do?

Respond to the letter indicating that you did not file a joint return with the person listed and you do not know who it is.

Click here for instructions once you are ready to file your return.

Why did I receive a letter asking for my driver's license and Social Security card?

A letter has been sent to you requesting that you submit copies of your Driver's License and Social Security card because the State of Michigan has received more than one return with your Name and/or Social Security number. We require verification of your identity prior to issuing a refund.

Please respond to the letter as requested regardless of your filing requirements with the State of Michigan.

I was notified by a third party that I am a victim of identity theft. What do I need to do for the Michigan Department of Treasury?

If you believe that your identity has been stolen you can report identity theft by sending an e-mail to Treasury-ReportIDTheft@michigan.gov

The email should include the following:

  • Taxpayer’s Name
  • Address
  • The last 4 digits of the Social Security number
  • Brief description of the situation (i.e., identity theft, fraudulent return filed under taxpayer’s Social Security number, etc.)

If you are required to file Michigan returns click here for more information.

 Income Tax General
How do I change my address with the Department of Treasury?

To change your address, use the Check My Income Tax Info site.

For privacy and security reasons you will be asked for your social security number, name, tax year, adjusted gross income or total household resources/household income and filing status.

To change your address on this Website:
  1. Select the option 'Change My Address'
  2. To verify your identity, log in using the filer's social security number and name, then choose the link 'Change My Address'.
  3. You will be asked to enter the tax year, your adjusted gross income/total household resources/ household income and filing status. Follow the directions given on the next page to request an address change

To change your address by mail, please send the information to:

Michigan Department of Treasury
Customer Contact
P.O. Box 30058
Lansing, MI 48909

Include your name, social security number, old address, new address and daytime phone number.

What are Revenue Administrative Bulletins (RAB's) and where can I find them?
Definition of Revenue Administration Bulletin.

View a list of Revenue Administrative Bulletins.

If you are unable to find a specific RAB you may request a copy by emailing us at treasIndTax@michigan.gov.

How do I contact the IRS with questions about individual income tax or Federal Employer's Identification Numbers?

All questions regarding federal income tax returns, Federal Employer's Identification Numbers (FEIN) or any other federal questions should be directed to the Internal Revenue Service by calling 1-800-829-1040.

What cities impose an income tax?

For 2014 the following Michigan cities levy an income tax of 1% on residents and 0.5% on nonresidents.

Albion, Battle Creek, Big Rapids, Flint, Grayling, Hamtramck, Hudson, Ionia, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Springfield and Walker.

The exceptions to the above rates are as follows:

CityResidentsNonresidents
Detroit 2.4% 1.2%
Grand Rapids 1.5% 0.75%
Highland Park 2% 1%
Saginaw 1.5% 0.75%

Links to some Michigan cities are available on this web site. If the tax forms are not available on the website, you will need to contact the city/county in question and they will mail you the required forms.

I earned income from another state. How do I determine to which state I should pay tax?

View information on allocation of income.

View information on reciprocal states.

Are U.S. Obligations exempt from Michigan tax?

View U.S. Obligations that are exempt from Michigan Income Tax.

 Military Income
Federal Military Spouses Residency Relief Act

The Military Spouses Relief Act was signed into law on November 11, 2009, effective for tax years beginning on or after January 1, 2009. It may affect the state income tax filing requirements for a spouse of an individual in the military.

Under the Act, the spouse of an individual in the military is a non-resident of a state and consequently not subject to that state's taxation if:

  • The service member is present in that state due to military orders
  • The spouse is in that state solely to accompany the service member
  • The spouse maintains a domicile in another state

Therefore, a military spouse who is a Michigan resident and plans to return to Michigan as his/her permanent home should include income earned in the other state on his/her Michigan Income Tax return. A Michigan military spouse may not claim a credit for the income taxes paid to another state. The military spouse must file a non-resident return with the other state to obtain a refund of taxes paid to that state.

Example one: A service member and his/her spouse are Michigan residents. The service member is on active military duty stationed in Dover, Delaware. The spouse also lives and works in Dover. Prior to 2009, Delaware could tax the spouse's income. The taxpayer would have to file a Delaware return and pay tax on the spouse's wages. The taxpayer would then file an MI-1040. On the Michigan return, the taxpayer would compute tax on the spouse's wages and take a credit for tax paid to another state. Beginning with 2009, the spouse's wages could not be taxed by Delaware, and the taxpayer can no longer take a credit for taxes paid to Delaware.

Example two: Jack is a Michigan resident stationed in Dover, Delaware. While in the Air Force, he marries a woman who is a Virginia resident and works in Delaware. She is not in the military and never gives up her Virginia domicile. Her wages are not taxable in Delaware or Michigan but instead are taxable to Virginia.

Problem Unique to 2009: Most spouses working for private employers outside of Michigan will have had state income tax (in this example, Delaware) withheld from their wages for 2009. It will be necessary to file a return with Delaware as a non-taxable, non-resident to recoup that withholding. This should be done as soon as possible because Michigan tax on those earnings will be due April 15, 2010.

Beginning with tax year 2010, if the non-military employer of a Michigan military spouse in another state does not file Michigan withholding (and most will not), the Michigan taxpayer should make estimated payments to avoid penalty and interest for underpayment of estimates. The taxpayer may be able to:

  • Request their employer(s) withhold Michigan taxes, or
  • Request that no taxes be withheld from their salary and wages for the other state.

Statements verifying non-residency may be required by either state.

More Military Information
Am I required to file a Michigan income tax return if Michigan is my home of record but I have not been stationed in Michigan for several years?

Yes. If Michigan is your home of record you are considered a Michigan resident and you are required to file a Michigan income tax return (MI-1040) regardless of where your income is earned. Michigan does not tax active duty pay. However, most interest, dividends, capital gains and other income received by a Michigan resident are subject to Michigan income tax. You should file an MI-1040 and Schedule 1 as a Michigan resident and subtract your military pay to determine Michigan taxable income.

If I am a Michigan resident stationed outside of Michigan and own a home in Michigan, can I claim a property tax credit?
Yes, as long as you own and maintain your Michigan home, and have not rented it out to someone else, you may claim the credit.
If I am stationed in Michigan, does that mean I am a Michigan resident?
Not necessarily. If you were a resident of another state, you maintain your residency status in your home state, even if you are stationed in Michigan. A person may change his or her residency while in the military. Unless you change you home of record, you remain a resident of the state that you resided in when you entered the military.
Is National Guard pay considered military pay?

Only the following National Guard pay is considered military pay and therefore exempt from Michigan tax:

  • Weeknight and regular weekend drills.
  • Summer camp.
  • Pay received for riot duty only if nationalized by the president of the U.S.
  • Public Health Officers pay only for those assigned to the Coast Guard or who are nonresidents of Michigan.
  • Pension/Retirement benefits (beginning in 2012).

 

 

When do I file my taxes if I am in active duty overseas?

The deadline for filing a Michigan tax return is April 15. The deadline for filing and paying is extended for Military personnel stationed in a combat zone, and for their spouses, while the person is in the combat zone and for 180 days afterward.

It is possible for members of the Armed Forces to qualify for the extension without being in a combat zone. If you serve in direct support of those in the combat zone and receive hostile fire or imminent danger pay, you qualify for the extension. If you are deployed overseas, away from your permanent duty station, in support of operations in a qualified hazardous duty area, but outside the qualified hazardous duty area, you qualify for the extension. If you are hospitalized outside of the U.S. as a result of injuries suffered in the combat zone, you also qualify.

There is no requirement for you to certify your presence in a combat zone to qualify for the extension. Your branch of the military reports that information to the IRS for you.

If I was overseas for all of 2014, am I still required to file a Michigan return?

Yes, Michigan residents are required to file a Michigan return, regardless of where income is earned. However, military pay is exempt from Michigan tax; therefore, you should file an MI-1040 and Schedule 1 and subtract military pay, to the extent it is included in federal adjusted gross income (AGI).

If a military nonresident has civilian income in Michigan, is he/she required to file a Michigan income tax return?

Yes, nonresidents are subject to Michigan income tax on all civilian income earned in Michigan or attributable to Michigan. A nonresident would be required to file a Michigan income tax return (MI-1040) and a Michigan Schedule NR for nonresidents.

Residents of states having a reciprocal agreement with Michigan (Illinois, Indiana, Kentucky, Ohio, Wisconsin, and Minnesota) are not required to pay tax to Michigan on income earned in Michigan. They pay tax to their state of residency.

View the MI-1040 instruction booklet for the definitions of Resident, Non-resident and Part-Year Resident.

Are military exit benefits and military separation pay exempt from Michigan income tax?
Compensation paid from federal appropriations, including retirement benefits, for military services in the armed forces of the United States is exempt from Michigan income tax. Exit benefits and separation pay that are classified as military compensation may be deducted to the extent they are included in federal adjusted gross income (AGI).
Are military survivor benefits exempt from Michigan income tax?
Michigan will not tax military survivor benefits that are exempt from federal income tax and are not included in federal adjusted gross income. Survivor benefits that are classified as military compensation or military retirement pay may be deducted to the extent they are included in federal adjusted gross income for the surviving spouse only.
Are retirement benefits that pass to the spouse of a deceased military member exempt from Michigan income tax?
Military retirement benefits that pass to the spouse of a deceased member of the armed forces of the United States are exempt to the extent they are included in federal adjusted gross income.

Military retirement benefits must be reported on the Schedule W.

Are retirement benefits of a deceased military member that are passed to a beneficiary other than a surviving spouse exempt from Michigan income tax?
Military retirement benefits that pass to beneficiaries other than a surviving spouse are subject to Michigan income tax.
Are military retirement benefits exempt from Michigan income tax?
Military retirement benefits paid to retirees of the armed forces of the United States for services performed while a member are exempt from Michigan income tax. Military retirement benefits may be deducted to the extent they are included in federal adjusted gross income (AGI). As with other pensions, only the participant, or in the case of death or disability, his or her surviving spouse, may claim the subtractions.

Military retirement benefits must be reported on the Schedule W.

Is military pay exempt from Michigan income tax?

As a Michigan resident, you are required to file a Michigan income tax return (MI-1040) regardless of where your income is earned. Michigan does not tax active duty pay. However, most interest, dividends, capital gains and other income received by a Michigan resident are subject to Michigan income tax. You should file a MI-1040 and a Michigan Schedule 1 as a Michigan resident and subtract your military pay to determine Michigan taxable income.

 Payment Options
Does the State of Michigan accept electronic payments (i.e., debit card, credit cards and eChecks)?

Please see the e-Payments system FAQs for details.

Sending Payments to Treasury
See the information on the web page: Sending Payments to Treasury
 Penalty Charges
I filed for an extension and paid my taxes before the end of the extension period.  Why am I being charged additional penalty and interest?
An extension of time to file is not an extension of time to pay. Extension requests received without payment on the account will not be honored. Penalty and interest will accrue on the unpaid tax from the original due date of the return which is April 15th in the tax year of the claim.
How are penalty/interest charges calculated for failure to file estimate payments or underpayment of estimate payments?

Penalty is 10% of underpaid tax per quarter or 25% for failing to file estimated payments.

Exception: Per MCL 205.23(3) Except as provided in subsection (4), if any part of the deficiency or an excessive claim for credit is due to negligence, but without intent to defraud, a penalty of $10.00 or 10% of the total amount of the deficiency in the tax, whichever is greater, plus interest as provided in subsection (2), shall be added.

Interest is 1% above the prime rate and is computed monthly. The rate is adjusted on July 1 and January 1.

When do penalty charges apply to delinquent taxes?

If you file and /or pay your taxes after April 15, penalty and interest charges are added to the tax due amount.

How do I request a penalty waiver?

Requests must be in writing.  Penalty may be waived on an assessment if you can show reasonable cause for your failure to pay on time. Reasonable cause includes serious illness or death, a fire or natural disaster, or criminal acts against you. Documentation should be submitted to substantiate the reason for your penalty waiver request. Reference RAB 2005-3

Mail to:
Michigan Department of Treasury
Office of Collections
P.O. 30199
Lansing, MI 48909-7699

What are the penalty charges for failure to file or pay?

For Notices of Intent to Assess/Assessments issued on or before February 28, 2003

 

A penalty of $10.00 or 5% of the tax, whichever is greater, shall be added if the failure is for not more than 1 month, with an additional 5% penalty for each additional month or fraction of a month during which the failure continues or the tax and penalty is not paid, to a maximum of 50%.

For Notices of Intent to Assess/Assessments issued after February 28, 2003:

A penalty of 5% of the tax shall be added if the failure is for not more than 2 months, with an additional 5% penalty for each additional month or fraction of a month during which the failure continues or the tax and penalty is not paid, to a maximum of 25%.

What is the statutory authority for charging penalties?

The Revenue Act (Section 205.24, Act 122 of the Public Acts of 1941, as amended December 23, 2002).

How do I estimate penalty and/or interest charges?

Click here for Penalty and Interest Calculator

What if my check is returned by my financial institution as unpaid?

For failure to remit a tax administered by the Revenue Act as amended December 23, 2002 with a negotiable remittance, the following penalties may be added:

For Notices of Intent to Assess/Assessments issued on or before February 28, 2003:

A 25 percent penalty will be assessed.

For Notices of Intent to Assess/Assessments issued after February 28, 2003:

A $50.00 penalty will be assessed.

 Pension & Retirement Benefits
2014 Pension Information
Pension & Retirement Benefits – 2013
Pension & Retirement Benefits – 2012
Pension & Retirement Benefits – 2011 and Prior Year

Note: For joint filers, the age of the oldest spouse determines the age category

Beginning on January 1, 2012, pension and retirement benefits became subject to Michigan income tax for many recipients. Michigan law now requires the administrators of pension and retirement benefits to withhold income tax on distributions that are subject to tax.

What are “pension and retirement benefits”?

Under Michigan law, pension and retirement benefits include most payments that are reported on a 1099-R for federal tax purposes. This includes defined benefit pensions, IRA distributions and most payments from defined contribution plans. Pension and retirement benefits are generally taxable based on date of birth (see age groups below). Regardless of date of birth, the following are not taxed:

  • US Military pensions
  • Michigan National Guard pensions
  • Social Security
  • Railroad benefits
  • Rollovers not included in the Federal Adjusted Gross Income (AGI)

Certain distributions reported on form 1099-R are not pension or retirement benefits. Under Michigan law, these distributions are taxable deferred compensation. Taxable deferred compensation distributions include:

  • All distributions from 457 plans
  • Distributions from 401(k) or 403(b) plans sourced to employee contributions and the earnings from those contributions if the contributions were not matched by the employer.

Distributions that are premature under the terms of the retirement plan are always taxable regardless of the date of birth of the taxpayer. (See retirement code chart for 1099-R below.)

NOTE: When considering your pension subtraction, ‘surviving spouse’ means the deceased spouse died prior to the current tax year (e.g., when filing a 2014 return the spouse died in 2008). Deceased spouse benefits do not include benefits from a spouse who died in 2014. If you or your spouse received pension benefits from a deceased spouse, see Form 4884, Michigan Pension Schedule instructions.

What are “Qualified Distributions”?

A subtraction is allowed on the Michigan return for qualifying distributions from retirement plans. Retirement plans include private and public employer plans, and individual plans such as IRA's. To be considered a qualified distribution for the subtraction, several requirements must be met. For employer plans, an employee must have retired under the provisions of the plan, the pension benefits must be paid from a retirement trust fund, and the payment must be made to either the employee or a surviving spouse. (Payments made to a surviving spouse are only deductible if the employee qualified for the subtraction at the time of death.) If you are unsure whether your distribution qualifies, please contact your tax professional.

For qualifying distributions, there may be a limitation on the amount of the exemption that can be claimed.

Form 1099-R and Distribution Codes Chart

Form 1099-R reports the total pension and retirement benefits you received during the year. Please refer to box 7 on Form(s) 1099-R for the distribution code(s) that describes the condition under which the pension or retirement benefit was paid. This chart lists distribution codes and describes eligibility of benefits for subtraction based on each code. Some exceptions exist. If your distribution code is not included in the list below or if you have questions on eligibility of your benefits, please consult your tax professional.

Form 1099-R Distribution Codes Is the condition eligible for Michigan tax exemption?
(Dollar Limits may still apply)
1 - Early distribution, no known exception. No.
2 - Early distribution, exception applies. No, unless: Part of a series of mainly equal periodic payments made for the life of the employee or the joint lives of the employee and their beneficiary;
Early retirement under the terms of the plan.
3 - Disability. Yes.
4 - Death. Yes, for surviving spouse only and only if the decedent would have also qualified for a normal distribution under Distribution Code 7 at the time of death.
No, for all other beneficiaries.
No , if paid as a death benefit payment made by an employer but not made as part of a pension, profit sharing, or retirement plan.
5 - Prohibited transaction. No.
6 - Section 1035 exchange. The exchange of life insurance No.
7 - Normal distribution.
  • normal distribution from a plan,
  • distribution from a traditional IRA, if the participant is at least 59½,
  • Roth conversion if the participant is at least age 59½,
  • distribution from a life insurance, annuity, or endowment contract must be 65 and part of a series of mainly equal periodic payments made for the life of the employee or the joint lives of the employee and their beneficiary.
Yes.
8 - Excess contribution plus earnings/excess deferrals (and/or earnings) taxable in 2014. No.
9 - Cost of current life insurance protection. No.

For joint filers, the age of the oldest spouse determines the age category.

Recipients born before 1946:

For 2014 you may subtract all qualifying pension and retirement benefits received from public sources, and may subtract private pension and retirement benefits up to $49,027 if single or married filing separately or up to $98,054 if married filing jointly. Private subtraction limits must be reduced by public benefits subtracted. Withholding will only be necessary on taxable pension payments (private pension payments) that exceed the pension limits stated above for recipient born before 1946.

  • Complete Form 4884, Michigan Pension Schedule.
  • Military pensions, Michigan National Guard pensions and Railroad Retirement benefits are entered on Schedule 1, line 11. These continue to be exempt from tax. They must be reported on Schedule W Table 2, even if no Michigan tax was withheld.
  • Social Security benefits are entered on Schedule 1, line 14 and are exempt from tax.
  • Public pensions can include benefits received from the federal civil service, State of Michigan public retirement systems and political subdivisions of Michigan.
  • Rollovers not included in the Federal Adjusted Gross Income (AGI) will not be taxed in Michigan.
  • Subtraction for dividends, interest, and capital gains is limited to $10,929 for single filers and $21,857 for joint filers, less any deductions for retirement benefits including US military, Michigan National Guard, and railroad retirement benefits.

Note:  If you were born prior to January 1, 1946 and you receive a public pension(s) from a state other than Michigan , you should treat the public pensions received from the following states as totally exempt: Alaska, Florida, Hawaii, Illinois, Massachusetts, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming because they do not tax Michigan public pensions. Michigan residents who receive public pensions from states not listed should treat the pension as a private pension.

Recipients born during the period January 1, 1946 through January 1, 1948:

If the older of you or your spouse (if married filing jointly) was born during the period January 1, 1946 through January 1, 1948, and reached the age of 67 on or before December 31, 2014, you are eligible for a deduction against all income and will no longer deduct pension and retirement benefits. The deduction is $20,000 for a return filed as single or married, filing separately, or $40,000 for a return filed as married, filing jointly. The standard deduction is reduced by any military pay (included on Schedule 1, line 14), military retirement (reported on Schedule 1, line 11) and any railroad retirement benefits (reported on Schedule 1, line 11)

  • Please complete Schedule 1, line 24 instead of Form 4884.
  • Filers born during the period January 1, 1946 through January 1, 1948 who have retirement benefits from employment with a governmental entity that was exempt from the Social Security Act will be eligible for increased deductions.

Recipients born after January 1, 1948 through December 31, 1952:

You may subtract the first $20,000 for single or married filing separately, or $40,000 for married filing jointly, of all private and public pension and annuity benefits. Benefits in excess of these limits are taxable to Michigan.

  • Complete Form 4884, Michigan Pension Schedule.
  • Military pensions, Michigan National Guard pensions and Railroad Retirement benefits are entered on Schedule 1, line 11. These continue to be exempt from tax. They must be reported on Schedule W Table 2, even if no Michigan tax was withheld.
  • Social Security benefits are entered on Schedule 1, line 14 and are exempt from tax.
  • Rollovers not included in the Federal Adjusted Gross Income (AGI) will not be taxed in Michigan.
  • Filers born Recipients born after January 1, 1948 through December 31, 1952 who have retirement benefits from employment with a governmental entity that was exempt from the Social Security Act will be eligible for increased deductions.

Recipients born after 1952:

All pensions (private and public) and retirement benefits are taxable to Michigan. You may be eligible to claim a deduction for pension and retirement benefits that you are receiving from a deceased spouse who was born prior to January 1, 1953. When completing Form 4884, Michigan Pension Schedule, only include the deceased spouse's benefits.

  • Do not complete Form 4884, Michigan Pension Schedule, unless you are receiving benefits from a deceased spouse born prior to January 1, 1953.
  • Military pensions, Michigan National Guard pensions and Railroad Retirement benefits are entered on Schedule 1, line 11. These continue to be exempt from tax. They must be reported on Schedule W Table 2, even if no Michigan tax was withheld.
  • Social Security benefits are entered on Schedule 1, line 14 and are exempt from tax.
  • Rollovers not included in the Federal Adjusted Gross Income (AGI) will not be taxed in Michigan.
2014 Pension Deduction Estimator
 
 
Deductions for Retirement Benefits:
Military retirement benefits due to service in the U.S. Armed Forces or Michigan National Guard or taxable railroad retirement benefits included in AGI.
 
Your Results:
  
 

If you make additional changes after clicking on the submit button, you must click on the submit button again for changes to take effect

Please remember to a copy of this screen once your estimation is complete. Keep this copy with your tax records/documentation for the appropriate year.

DISCLAIMER:
This estimator provides an unofficial estimate and has no legal bearing on any future tax liability. Interactive estimators are made available to you as self-help tools for your independent use.

NOTE: The information you provide is anonymous and will only be used for purposes of this estimation. It will not be shared, stored or used in any other way, nor can it be used to identify the individual who enters it. It will be discarded when you exit this program.


Dividends/Interest/Capital Gain Deduction

Senior Citizens born before 1946 (or the unremarried surviving spouse for someone born before 1946 who was at least age 65 at the time of death) may subtract dividends, interest, and capital gains. The subtraction is limited to $10,929 for single filers and to $21,857 for joint filers for 2014. These limits must be reduced by any pension subtraction taken.

Dividends / Interest Examples

1. Example:

Senior Citizen filing a single return with $5,000 pension subtraction is only allowed an interest subtraction of $5,929 ($10,929 - $5,000 = $5,929).

Mary is 68 years old and has pension of $5,000 and interest income of $6,000.

Maximum interest subtraction
Less pension subtraction
Allowable interest subtraction
$10,929
- 5,000
$5,929
 
2. Example:

An individual filing a joint return with $90,240 pension subtraction is not allowed an interest subtraction because the pension amount is more than the allowable subtraction of interest ($21,857).

Larry & Lucy Smiles are 68 years old and have pension of $90,240 and interest income of $15,201.

Maximum interest subtraction
Less pension subtraction
Allowable interest subtraction
$21,857
- 90,240
$0
Dividends/Interest/Capital Gain Deduction Estimator
Note: If you are the unremarried surviving spouse of someone born before 1946 who was at least age 65 at the time of death, enter your deceased spouse's year of birth.
Your Results:

Please remember to a copy of this screen once your estimation is complete. Keep this copy with your tax records/documentation for the appropriate year.

DISCLAIMER:
This estimator provides an unofficial estimate and has no legal bearing on any future tax liability. Interactive estimators are made available to you as self-help tools for your independent use.

NOTE: The information you provide is anonymous and will only be used for purposes of this estimation. It will not be shared, stored or used in any other way, nor can it be used to identify the individual who enters it. It will be discarded when you exit this program.

2013 Pension Information
Pension & Retirement Benefits – 2014
Pension & Retirement Benefits – 2012
Pension & Retirement Benefits – 2011 and Prior Year


Beginning on January 1, 2012, pension and retirement benefits became subject to Michigan income tax for many recipients. Michigan law now requires the administrators of pension and retirement benefits to withhold income tax on distributions that are subject to tax.

What are “pension and retirement benefits”?

Under Michigan law, pension and retirement benefits include most payments that are reported on a 1099-R for federal tax purposes. This includes defined benefit pensions, IRA distributions and most payments from defined contribution plans. Pension and retirement benefits are generally taxable based on date of birth (see age groups below). Regardless of date of birth, the following are not taxed:

  • US Military pensions
  • Michigan National Guard pensions
  • Social Security
  • Railroad pension benefits
  • Rollovers not included in the Federal Adjusted Gross Income (AGI)

Certain distributions reported on form 1099-R are not pension or retirement benefits. Under Michigan law, these distributions are taxable deferred compensation. Taxable deferred compensation distributions include:

  • All distributions from 457 plans
  • Distributions from 401k or 403B plans sourced to employee contributions and the earnings from those contributions if the contributions were not matched by the employer.

Distributions that are premature under the terms of the retirement plan are always taxable regardless of the date of birth of the taxpayer. (See retirement code chart for 1099-R below.)

NOTE: When considering your pension subtraction, ‘surviving spouse’ means the deceased spouse died prior to the current tax year (e.g., when filing a 2013 return the spouse died in 2008). Deceased spouse benefits do not include benefits from a spouse who died in 2013. If you or your spouse received pension benefits from a deceased spouse, see Form 4884, Michigan Pension Schedule instructions.

What are “Qualified Distributions”?

A subtraction is allowed on the Michigan return for qualifying distributions from retirement plans. Retirement plans include private and public employer plans, and individual plans such as IRA's. To be considered a qualified distribution for the subtraction, several requirements must be met. For employer plans, an employee generally must have retired under the provisions of the plan, the pension benefits must be paid from a retirement trust fund, and the payment must be made to either the employee or a surviving spouse. (Payments made to a surviving spouse are only deductible if the employee qualified for the subtraction at the time of death.) If you are unsure whether your distribution qualifies, please contact your tax professional.

For qualifying distributions, there may be a limitation on the amount of the exemption that can be claimed.

Form 1099-R and Distribution Codes Chart

Form 1099-R reports the total pension and retirement benefits you received during the year. Please refer to box 7 on Form(s) 1099-R for the distribution code(s) that describes the condition under which the pension or retirement benefit was paid. This chart lists distribution codes and describes eligibility of benefits for subtraction based on each code. Some exceptions exist. If your distribution code is not included in the list below or if you have questions on eligibility of your benefits, please consult your tax professional.

Form 1099-R Distribution Codes Is the condition eligible for Michigan tax exemption?
(Dollar Limits may still apply)
1 - Early distribution, no known exception. No.
2 - Early distribution, exception applies. No, unless: Part of a series of mainly equal periodic payments made for the life of the employee or the joint lives of the employee and their beneficiary;
Early retirement under the terms of the plan.
3 - Disability. Yes.
4 - Death. Yes, for surviving spouse only and only if the decedent would have also qualified for a normal distribution under Distribution Code 7 at the time of death.
No, for all other beneficiaries.
No , if paid as a death benefit payment made by an employer but not made as part of a pension, profit sharing, or retirement plan.
5 - Prohibited transaction. No.
6 - Section 1035 exchange. The exchange of life insurance No.
7 - Normal distribution.
  • normal distribution from a plan,
  • distribution from a traditional IRA, if the participant is at least 59½,
  • Roth conversion if the participant is at least age 59½,
  • distribution from a life insurance, annuity, or endowment contract must be 65 and part of a series of mainly equal periodic payments made for the life of the employee or the joint lives of the employee and their beneficiary.
Yes.
8 - Excess contribution plus earnings/excess deferrals (and/or earnings) taxable in 2013. No.
9 - Cost of current life insurance protection. No.

For joint filers, the age of the oldest spouse determines the age category

Recipients born before 1946:

For 2013 you may subtract all qualifying pension and retirement benefits received from public sources, and may subtract private pension and retirement benefits up to $48,302 if single or married filing separately or up to $96,605 if married filing jointly. Private subtraction limits must be reduced by public benefits subtracted. Withholding will only be necessary on taxable pension payments (private pension payments) that exceed the pension limits stated above for recipient born before 1946.

  • Complete Form 4884, Michigan Pension Schedule.
  • Military pensions, Michigan National Guard pensions and Railroad Retirement benefits are entered on Schedule 1, line 11. Social Security is entered on Schedule 1, line 14. These continue to be exempt from tax.
  • Public pensions can include benefits received from the federal civil service, State of Michigan public retirement systems and political subdivisions of Michigan.
  • Rollovers not included in the Federal Adjusted Gross Income (AGI) will not be taxed in Michigan.
  • Subtraction for dividends, interest, and capital gains is limited to $10,767 for single filers and $21,534 for joint filers, less any deductions for retirement benefits including US military, Michigan National Guard, and railroad retirement benefits.

Note:  If you were born prior to 1/1/1946 and you receive a public pension(s) from a state other than Michigan , you should treat the public pensions received from the following states as totally exempt: Alaska, Florida, Hawaii, Illinois, Massachusetts, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming because they do not tax Michigan public pensions. Michigan residents who receive public pensions from states not listed should treat the pension as a private pension.

Recipients born in 1946

Filers born in 1946, or where the older spouse was born in 1946 if filing a joint return, are eligible for a deduction against all income and will no longer deduct pension and retirement benefits. The deduction is $20,000 for a return filed as single or married, filing separately, or $40,000 for a return filed as married, filing jointly. The standard deduction is reduced by any military pay (included on Schedule 1, line 14), military retirement (reported on Schedule 1, line 11) and any railroad retirement benefits (reported on Schedule 1, line 11)

  • Do not complete Form 4884, Michigan Pension Schedule. See Schedule 1, lines 23 and 24.
  • Beginning in 2013, filers born in 1946 who have retirement benefits from employment with a governmental entity that was exempt from the Social Security Act will be eligible for increased deductions.

Recipients born between 1947 and 1952:

The first $20,000 for single or married filing separately or $40,000 for married filing jointly, of all private and public pension and annuity benefits may be subtracted from Michigan taxable income. Benefits in excess of these limits are taxable to Michigan.

  • Complete Form 4884, Michigan Pension Schedule.
  • Military pensions, Michigan National Guard pensions and Railroad Retirement benefits are entered on Schedule 1, line 11. Social Security is entered on Schedule 1, line 14. These continue to be exempt from tax.
  • Rollovers not included in the Federal Adjusted Gross Income (AGI) will not be taxed in Michigan.
  • Not eligible for the subtraction for dividends, interest, and capital gains.
  • Beginning in 2013 filers born between 1947 and 1952 who have retirement benefits from employment with a governmental entity that was exempt from the Social Security Act will be eligible for increased deductions.

Recipients born after 1952:

All pensions (private and public) and retirement benefits are taxable to Michigan. You may be eligible to claim a deduction for pension and retirement benefits that you are receiving from a deceased spouse who was born prior to 1/1/1953. When completing Form 4884, Michigan Pension Schedule, only include the deceased spouse's benefits.

  • Do not complete Form 4884, Michigan Pension Schedule, unless you are receiving benefits from a deceased spouse born prior to 1/1/1953.
  • Military pensions, Michigan National Guard pensions and Railroad Retirement benefits are entered on Schedule 1, line 11. Social Security is entered on Schedule 1, line 14. These continue to be exempt from tax.
  • Rollovers not included in the Federal Adjusted Gross Income (AGI) will not be taxed in Michigan.
  • Not eligible for the subtraction for dividends, interest, and capital gains.
Recipients born between January 1, 1947 and December 31, 1952 who receive pension or retirement benefits from employment with a governmental agency that was not covered by the federal SSA are entitled to a greater retirement/pension deduction. View more details.
2013 Pension Deduction Estimator
 
 
Deductions for Retirement Benefits:
Military retirement benefits due to service in the U.S. Armed Forces or Michigan National Guard or taxable railroad retirement benefits included in AGI.
 
Your Results:
  
 
Based on the information above, you should complete page 1 and part A on page 2.
Enter your results on line 15.
Based on the information above, you should complete page 1 and part B on page 2.
Enter your results on line 26.
Based on the information above, you should complete page 1 and part C on page 2.
Enter your results on line 27.
You may not qualify to use form 4884. Please verify that all displayed birth years are correct. If they are, you are not eligible for a pension or retirement benefit deduction.
Please complete Schedule 1, Line 24 instead of Form 4884.

If you make additional changes after clicking on the submit button, you must click on the submit button again for changes to take effect

Please remember to a copy of this screen once your estimation is complete. Keep this copy with your tax records/documentation for the appropriate year. Do not use the "Printer Friendly" version as it will delete all figures from your estimation results.

Qualifying public benefits include distributions from the following sources:
  • The State of Michigan
  • Michigan local governmental units
    (e.g., Michigan counties, cities, and school districts)
  • Federal civil service

DISCLAIMER:
This estimator provides an unofficial estimate and has no legal bearing on any future tax liability. Interactive estimators are made available to you as self-help tools for your independent use.

NOTE: The information you provide is anonymous and will only be used for purposes of this estimation. It will not be shared, stored or used in any other way, nor can it be used to identify the individual who enters it. It will be discarded when you exit this program.


Dividends/Interest/Capital Gain Deduction

Senior Citizens born before 1946 (or the unremarried surviving spouse for someone born before 1946 who was at least age 65 at the time of death) may subtract dividends, interest, and capital gains. The subtraction is limited to $10,767 for single filers and to $21,534 for joint filers for 2013. These limits must be reduced by any pension subtraction taken.

Dividends / Interest Examples

1. Example:

Senior Citizen filing a single return with $5,000 pension subtraction is only allowed an interest subtraction of $5,767 ($10,767 - $5,000 = $5,767).

Mary is 68 years old and has pension of $5,000 and interest income of $6,000.

Maximum interest subtraction
Less pension subtraction
Allowable interest subtraction
$10,767
- 5,000
$5,767
 
2. Example:

An individual filing a joint return with $90,240 pension subtraction is not allowed an interest subtraction because the pension amount is more than the allowable subtraction of interest ($21,534).

Larry & Lucy Smiles are 68 years old and have pension of $90,240 and interest income of $15,201.

Maximum interest subtraction
Less pension subtraction
Allowable interest subtraction
$21,534
- 90,240
$0
Dividends/Interest/Capital Gain Deduction Estimator
Note: If you are the unremarried surviving spouse of someone born before 1946 who was at least age 65 at the time of death, enter your deceased spouse's year of birth.
Your Results:

Please remember to a copy of this screen once your estimation is complete. Keep this copy with your tax records/documentation for the appropriate year. Do not use the "Printer Friendly" version as it will delete all figures from your estimation results.

DISCLAIMER:
This estimator provides an unofficial estimate and has no legal bearing on any future tax liability. Interactive estimators are made available to you as self-help tools for your independent use.

NOTE: The information you provide is anonymous and will only be used for purposes of this estimation. It will not be shared, stored or used in any other way, nor can it be used to identify the individual who enters it. It will be discarded when you exit this program.

Withholding for Pension Recipients Frequently Asked Questions (FAQs)

General Information
  1. At what rate will my pension be taxed?

    The tax rate for 2013 is 4.25%

  2. What are my responsibilities as a pension recipient?

    It is your responsibility to contact your pension administrator to ensure taxes are being withheld from your pension payments, whether you submit an MI W-4P or not.

  3. If I am not a resident of Michigan but receive a Michigan pension, is my pension taxable to Michigan?

    No. If you receive the MI W-4P from your pension administrator, return indicating you are not a resident of Michigan and mark box 1.

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MI W-4P
  1. When should I complete the MI W-4P?

    Complete form MI W-4P and give it to the administrator of your pension or annuity payments as soon as possible.

  2. Can I change my MI W-4P if I have already submitted it to my pension administrator?

    Yes, you may change your elections on the MI W-4P at any time by submitting and updated MI W-4P to your pension administrator.

  3. I was born in 1947. Can I send the MI W-4P to my IRA administrator requesting that they do not withhold state income tax?

    Any person regardless of age can opt out of pension withholding by checking box 1 on the MI W-4P.

  4. Prior to 2012, I was able to designate a specific amount to be withheld from my qualified pension plan for State Withholding Tax. The current MI W-4P requires a percentage. Will the form be changed in the future to allow a specific dollar amount for withholding?

    A new form MI W-4P became available during 2013 that allows a recipient to designate voluntary withholding as either an amount or a percentage. Check with your pension administrator to see if they can accommodate your request.

  5. My marital status is one of the following: A widow(er) or divorced. When I complete the MI W-4P, which box should I check?

    Single.

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Pension Administrators
  1. Is every pension administrator required to withhold Michigan tax?

    Only companies over whom Michigan has taxing jurisdiction are required to withhold Michigan tax from your pension and/or annuity payments.

  2. How do I know if my pension administrator falls under Michigan jurisdiction?

    Contact your pension administrator.

  3. What if my pension administrator does not fall under Michigan jurisdiction?

    If your pension administrator does not fall under Michigan jurisdiction, you may request to have tax withheld, but the company is not required to do so. If no taxes are withheld from your payments, it is likely you will be required to make estimated payments in place of the withholding. For more information on estimated payments, see MI 1040ES.

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Payments/Distributions and Contributions
  1. If I take an early distribution, does the new pension law apply to me?

    Early distributions are taxable pension distributions subject to withholding.

  2. I have a pension that I receive from the Pension Benefit Guaranty Corporation (PBGC). Will state tax withholding be taken from those pension payments.

    No, the PBGC withholds federal taxes but does not withhold state taxes. A taxpayer receiving a pension from the PBGC should plan to make quarterly payments for the expected tax liability.

  3. I am 60 years old. I retired from a company that terminated its pension plan and transferred the pension obligations to an insurance company. I am now receiving a distribution from the insurance company under a group annuity plan. Is my distribution still a “retirement or pension benefit,” or is it now a senior citizen annuity that I can’t deduct until I reach age 65?

    The annuity plan distribution from the insurance company continues to be a retirement or pension benefit, so long as the annuity plan is a qualified plan under IDP 401(a). Deductions will be limited under the provisions of MCL 206.30(a).

    Tier 1 Taxpayers. Plan recipients who are tier 1 taxpayers (the recipient or his or her spouse born before 1946) are limited to the private pension amounts of $47,309/single filer and $94,618/joint filers for the “retirement or pension benefits” deduction.

    Example 1. Mike is a Michigan taxpayer who was born in 1945. Mike is married to Meg who was born in 1949. Mike receives pension benefits from an IRC 401(a) qualified annuity plan. Mike and Meg may deduct up to $94,618 from their adjusted gross income on their joint Michigan returns because Mike (the older spouse) was born before 1946.

    Tier 2 Taxpayers. Plan recipients who are tier 2 taxpayers (the recipient or his or her spouse born 1946 through 1952) may deduct up to $20,000/single filer or $40,000/joint filers. At age 67, the deduction limitations no longer apply, so taxpayers are then eligible for a $20,000/single filer or $40,000/joint filer deduction against all types of income.

    Example 2. Mary is a Michigan taxpayer who was born in 1950. Mary is married to Joe who was born in 1946. Mary receives pension benefits from an IRC 401(a) qualified annuity plan. Mary and Joe may deduct up to $40,000 from their adjusted gross income on their joint Michigan returns because Joe (the older spouse) was born in 1946. When Joe is 67, they may deduct $40,000 against all types of income. The deduction is no longer restricted to income from retirement or pension benefits.

    Tier 3 Taxpayers. Plan recipients who are tier 3 taxpayers (the recipient or his or her spouse born after 1952) do not qualify for a “retirement or pension benefits” deduction. At age 67, these taxpayers are eligible for the $20,000/single filer or $40,000/joint filer deduction that is not restricted to income from “retirement or pension benefits.”

    Example 3. Drew is a Michigan taxpayer who was born in 1955. Drew is married to Kate who was born in 1960. Drew receives pension benefits from an IRC 401(a) qualified annuity plan. Drew and Kate do not qualify for a retirement or pension benefits deduction. However, when Drew is 67, they may, as joint filers, deduct $40,000 from all types of income.

  4. If I made post-tax contributions to my pension, will the money be taxed again?

    No, as long as the contributions are excluded from your Federal Adjusted Gross Income. These contributions are usually reported on a separate line of your 1099-R.

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Subtractions
  1. Can I subtract a rollover from a regular IRA to a Roth IRA

    If you are 59 ½ in the year the rollover occurs, you may deduct the rollover as a pension deduction within the limits for deducting pension income.

  2. Can I subtract a distribution from a Roth IRA?

    No. Distributions from a Roth IRA are already excluded from income on your federal return and therefore may not be subtracted on the Michigan return.

  3. Can I subtract a distribution from deferred compensation?
    • A 457 plan does not meet the qualifications for subtraction. You cannot subtract distributions from a 457 plan.
    • Distributions from a 401(k) or 403(b) plan are deductible if they are the result of the employer's contributions or employee contributions required by the plan. Employee's contributions required by the plan to obtain an employer match are considered mandated. Amounts distributed from a 401(k) or 403(b) plan that allows the employee to set the amount of compensation to be deferred and does not prescribe retirement age or years of service do not qualify as retirement and pension benefits.
    • You may not subtract any distributions that are reported by the payer on a W-2 Form.
  4. What is the new subtraction for pension benefits from employment that was exempt from Social Security?

    Employment that is not covered by the federal Social Security Act (SSA) means the worker did not pay Social Security taxes and is not eligible for Social Security benefits based on that employment. Almost all employment is covered by the federal SSA. The most common instances of pension and retirement benefits from employment that is not covered by Social Security are police and firefighter retirees, some federal retirees covered under the Civil Service Retirement System and hired prior to 1984, and a small number of other state and local government retirees. Federal retirees hired since 1984 and those covered by the Federal Employees’ Retirement System are covered under the SSA.

    Recipients born between January 1, 1946 and December 31, 1952 who receive pension or retirement benefits from employment with a governmental agency that was not covered by the federal SSA are entitled to a greater retirement/pension subtraction or Michigan Standard Deduction. If you or your spouse are SSA exempt this increases your maximum allowable subtraction by $15,000.

    To incorporate this larger subtraction into the withholding from your pension or retirement benefits, complete an MI W-4P and check box 4. Then submit the MI W-4P to your pension administrator.

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  5. I was born on January 1, 1953 and receive pension or retirement benefits from employment with a governmental agency that was not covered by the federal Social Security Act (SSA). Am I eligible to claim a pension or retirement subtraction on my 2014 Michigan return?

    Individuals born after 1952 are considered “Tier 3” when determining any allowable pension or retirement benefit deduction. In most cases Tier 3 filers are not eligible for a pension and retirement subtraction. However, a Tier 3 filer who reaches age 62 AND receives a pension or retirement from employment with a government agency that was not covered by the Social Security Act (SSA), is eligible to receive a pension or retirement deduction of up to $15,000 ($30,000 on a jointly filed return where both spouses receive pension or retirement benefits from employment that was not covered by the SSA). Following federal guidelines, an individual is considered to have reached age 62 on the day before their birthday. Individuals born on January 1, 1953 are considered age 62 on December 31, 2014.

    How to claim
    If you were born ON January 1, 1953 and you receive pension or retirement benefits from employment with a governmental agency that was not covered by the federal Social Security Act (SSA exempt), you may be eligible for a pension and retirement subtraction of up to $15,000 ($30,000 if you file a joint return and both you and your spouse receive pension or retirement benefits from SSA exempt employment). You will not be able to claim the deduction if your return is e-filed. Please paper file your 2014 Michigan return according to the following instructions.

    Complete only page 1 of Form 4884 and write “Born January 1, 1953” at the top of the form. Determine your pension or retirement subtraction using the lesser of your total eligible pension or retirement benefits or $15,000 for a single filer or when one spouse of a jointly filed return has SSA exempt pension benefits. Claim the lesser of your total eligible pension or retirement benefits or $30,000 when both spouses of a jointly filed return receive SSA exempt pension benefits.

    Claim this pension or retirement subtraction on Schedule 1, line 22 as a miscellaneous subtraction and write “Born January 1, 1953” as the description.

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Which Benefits are Taxable?
  1. If I am in the age bracket of 1946-1952, will my pension administrator know that the first $20,000 or $40,000 of my pension is not taxable?

    The only way your pension administrator will know not to withhold on the first $20,000 or $40,000 of your pension is by receiving your completed MI W-4P. You will need to indicate your marital status and check box 3.

  2. What if I am married and my spouse was born before 1946 and I was born after 1946. Can I still subtract the full amount of my pension, or am I limited to the $40,000 maximum amount for joint returns?

    For joint returns, the birth date of the oldest spouse is used to determine the pension subtraction, regardless of which spouse actually receives the pension. For example, if one spouse was born before 1946, the pension can be subtracted as described in Pension Recipients born before 1946. Similarly, if the older spouse was born between 1946 and 1952, the pension can be subtracted up to a maximum of $40,000, even if the spouse who actually receives the pension was born after 1952. View information for Pension Recipients born between 1946 and 1952.

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Information on Deceased Spouses
  1. My spouse has passed away and I am receiving survivor retirement or pension benefits. What subtraction can I claim?

    If the spouse who passed away could have subtracted the retirement or pension benefits while he or she were alive, then the surviving spouse may also subtract the benefits. The surviving spouse may continue to claim the subtraction even if the spouse remarries. The surviving spouse benefit subtraction only applies to distributions from the deceased spouse’s retirement or pension plan. After the death of one spouse, the retirement or pension subtraction that the surviving spouse receives as a result of his or her own employment is based on the surviving spouse’s own date of birth. The retirement or pension subtraction the surviving spouse receives as a beneficiary of the decedent’s retirement or pension plan is based on the date of birth of the decedent.

    Example.  George and Alice are married. George was born in 1948 and Alice was born in 1953. George and Alice both retired in 2012 and began drawing pension benefits. In 2012, they can subtract up to $40,000 of retirement benefits because they file a joint return and George was born between 1946 and 1952.

    In 2013, George dies. Alice is the beneficiary on his retirement account. After his death, Alice receives monthly survivor benefits from George’s plan as well as monthly benefits from her plan. Since George died in 2013, they can still file a joint return and subtract up to $40,000 retirement benefits because George was born between 1946 and 1952.

    In 2014, Alice continues to receive benefits from both plans. Alice can subtract up to $20,000 of benefits she received from George’s plan because she is single and the benefits would qualify for the subtraction if George was still alive. She cannot subtract any benefits she receives from her own plan because she was born after 1952. If the survivor benefits from George’s plan terminate in a later year, Alice would no longer be able to claim any subtraction.

  2. My spouse was 67 when he passed away. I am receiving income from interest, dividends and capital gains. I am not yet 67 and I have not remarried; can I deduct the income from interest, dividends and capital gains?

    Yes, if the spouse who passed away was 67 or older in 2012 then the un-remarried surviving spouse is also eligible to deduct the income from interest, dividends and capital gains. However, unlike retirement and pension benefits, the surviving spouse may not claim the deduction after remarriage.

    Example. Tom and Mary are married. Tom was born in 1945 and Mary was born in 1947. They farmed their entire lives, and in 2010, they decided to retire. They sold their farm for $2M and lived off their savings.

    In 2012, Tom died. Mary filed a joint return and reported $50,000 of income from interest, dividends, and capital gains. They can claim a deduction of $21,857, the maximum subtraction allowed on a joint return for the senior citizen’s interest, dividend, and capital gain deduction.

    In 2013, Mary files a single return. She can claim a subtraction of $10,929 (as adjusted for inflation) for the interest, dividend, and capital gain deduction because she is the un-remarried surviving spouse of a senior citizen born before 1946, and she files single.

    If Mary remarries in 2014 and files a joint return with her new husband, she no longer qualifies as a senior citizen for purposes of the senior citizen interest, dividend, and capital gain subtraction because she is remarried and was not born before 1946.

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Withholding for Pension Administrators Frequently Asked Questions (FAQ)

 

Changes to Pension Withholding and Who Will be Affected

  1. Which pension benefits will be taxed?

    Under Michigan law, qualifying pension and retirement benefits include most payments that are reported on a 1099-R for federal purposes. This includes defined benefit pensions, IRA distributions, and most payments from defined contribution plans.

    Payments received before the recipient could retire under the provisions of the plan or benefits from 401(k), 457, or 403(b) plans attributable to employee contributions alone are taxable under Michigan law.

  2. Should taxes be withheld from military pension or railroad retirement benefits?

    No, they are exempt from tax.

  3. What are the changes for recipients born before 1946 (Tier 1)?

    There are no changes for those born before 1946 (Tier 1).

    For recipients born before 1946, all benefits from public sources are exempt and benefits from private sources may be deducted up to $49,027 for a single or married filer filing separately or $98,054 for married filing a joint return for the 2014 tax year. Any private pension payment in excess of the limits above is taxable.

  4. What are the changes for recipients born during the period 1946 through 1952 (Tier 2)?

    For recipients born during the period 1946 through 1952 (Tier 2), the first $20,000 for single filers or $40,000 for joint filers of all private and public pension and retirement benefits may be deducted from Michigan taxable income. Benefits in excess of these limits are taxable to Michigan. Beginning in 2014, taxpayers born during the period January 1, 1946 through January 1, 1948 are eligible for the Michigan Standard Deduction in lieu of a deduction for pension and retirement benefits. The new Michigan Standard Deduction is the same amount dollar amount as the deduction for pension and retirement benefits but may be applied against all income. The pension withholding tables allow taxpayers to incorporate the benefit of the Standard Deduction and generate the appropriate income tax withholding.

  5. What are the changes for recipients born after 1952 (Tier 3)?

    For recipients born after 1952 (Tier 3), all private and public pension and annuity benefits are fully taxable and may not be deducted from Michigan taxable income.

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Registration Process

  1. When should a pension administrator register?

    Pension administrators may register at any time, but should register as soon as you know you have a Michigan resident(s) to which you pay pension and/or annuity payments.

  2. How does a pension administrators register?

    Pension administrators not currently registered for Michigan Withholding Tax must now visit Michigan Treasury Online (MTO).

  3. If a company is currently registered with Treasury for a tax other than Michigan Withholding, does it need to register as a pension administrator?

    Yes, it must register for withholding.

  4. Will companies that use a payroll provider be required to register for pension withholding?

    Yes. If a company is currently registered for payroll withholding, they will need to file a separate Form 518 to register for pension withholding if the payroll provider will not be handling the pension payments.

  5. A pension fund based in another state uses a third party payroll service provider located in Michigan to pay pension benefits on its behalf to Michigan residents. Is the third party provider required to register for and pay Michigan pension withholding?

    Yes. The law requires a person disbursing taxable pension benefits to pay pension withholding taxes. The third party provider is a person over whom Michigan has jurisdiction and disburses pension benefits; therefore, it is required to register for and pay pension withholding taxes.

  6. We are registered to deposit employee withholding with the state. Do we have to register again as a pension administrator in order to deposit the withholding from our members IRA withdrawals? Do we have to deposit IRA withholding separate from employee monthly withholding?

    Generally, IRA withholding payments and returns can be remitted and filed on the same Michigan 160 and 165 forms used for payroll withholding. Additional registration and separate deposits are not required.

    However, if a third party payroll service or administrator is used to file and pay employee withholding, a separate registration must be done for the required IRA withholding.

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Withholding Guide/MI W-4P

  1. If my company did not receive a Pension Withholding Guide, where can I get one?

    The guide is available on the web at www.michigan.gov/withholding.

  2. In the absence of an MI W-4P, can the pension administrators substitute it with the Federal W-4P?

    No

  3. We are tax technical advisors to a number of very large firms administering plans/funds. May a payer accept a substitute Form MI W-4P for purposes of withholding at a lower rate (than the statutory 4.25%) or zero withholding?

    If yes:
    (1) Does the substitute need to be similar to the official form?
    (2) Will Michigan require prior review/approval of the proposed substitute MI W-4P?

    Pension administrators may rely on or use substitute MI W-4P forms. For instance, a fillable form on a pension administrator's website for pension or IRA recipients to complete on line is an acceptable alternative to paper forms.

    In general, the substitute form needs to convey the same basic information that is on the Department's MI W-4P form. The Department is not requiring a review and approval for substitute forms at this time.

  4. What should be done if no MI W-4P is submitted?

    In the absence of an MI W-4P, do one of the following:

    • Do not withhold on benefits paid to recipients born before 1946 (Tier 1) unless the benefits exceed private pension limits ($49,027 single and $98,054 joint).
    • Withhold on all taxable pension distributions at 4.25% if the recipient was born in 1946 or after.

  5. Where can I find the withholding tables or the withholding formula?

    The withholding tables and/or withholding formula are available in the Withholding Guide. They can also be located on the website at www.michigan.gov/withholding.

  6. Can the withholding table or withholding formula be used for everyone?

    No. The withholding tables and/or withholding formula found in the Pension Withholding Guide are only for recipients that were born during the period 1946 through 1952 (Tier 2) and for whom an MI W-4P has been received.

  7. What is the difference between the single and joint withholding tables?

    The pension tax withholding tables included in the Pension Withholding Guide incorporate the deductions of $20,000 for single or married filing separate, and $40,000 for married filing a joint return, assuming benefits are paid monthly. Recipients who indicate on the MI W-4P they are married (withhold as single) should have withholding computed as if they are single.

  8. What is the 4.25% formula for those born between 1946 and 1952 (Tier 2)?

    Withholding = [Pension or Retirement Payment subject to federal income tax – Monthly pension deduction – (Allowance per Exemption x Number of Exemptions)] x 4.25%

     
    Monthly Deduction Amounts
    Single pension deduction…………
    $1,666.67
     
    Married pension deduction…………
    $3,333.33
     
    Personal exemption allowance…………
    $333.33
     

    Example:

    Pension Payment $2,100 (-) Single Pension Deduction $1,666.67 = $433.33

    $433.33 (-) ($333.33 x 1 Exemption) = $100.00

    $100.00 x 4.25% = $4.25 Monthly Withholding

  9. What is the withholding rate for those born after 1952 (Tier 3)?

    For recipients born after 1952 (Tier 3), all pension and retirement benefits are taxable. Use the monthly withholding table from the Michigan Income Tax Withholding Guide (Form 446) to calculate the appropriate withholding based on the number of personal exemptions claimed on the MI W-4P. This guide can be found online at www.michigan.gov/withholding.

  10. Can a pension recipient change their number of personal exemptions at any time?

    Yes, by submitting an updated MI W-4P to their Pension Administrator.

  11. We have clients whose marital status reflects one of the following: A widow(er) or divorced. When they complete the MI W-4P, which box should be checked?

    Single.

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Withholding Information for Pensions, Annuities and other Retirement Payments

  1. Our organization is a 501(c)(3) Type I supporting organization. We do not file a Form 990.  We are a religious organization. What responsibility do we have to withhold on a Charitable Gift Annuity (CGA) for a MI beneficiary?

    A 501(c)(3) organization making annuity payments to beneficiaries through a charitable gift annuity plan is subject to Michigan pension withholding on the taxable portion of the distributions. In general, the taxable portion of distributions subject to Michigan withholding will be the taxable amount that is reported to the beneficiary at the end of the year in box 2a of the federal 1099-R form.

  2. Do the new mandatory withholding requirements apply to trusts receiving IRA distributions as the beneficiary of an IRA?

    An IRA custodian or administrator is subject to Michigan’s pension withholding tax on any distributions that will be subject to Michigan income tax at the end of the year in the hands of the beneficiary. Distributions paid to a trust as an IRA beneficiary will be taxable at the end or the year and are subject to pension withholding.

  3. We are financial planners and are working with a custodian to withdraw money from a Roth IRA for one of our clients. Is a distribution from a Roth IRA taxable and subject to the 4.25% withholding?

    Law (MCL 206.703) requires pension withholding on any IRA distributions that will be subject to Michigan tax at the end of the year on the beneficiary’s Michigan income tax return. In general, distributions from Roth IRAs are exempt from both Michigan and federal income taxes, and no pension withholding would be required.

    However, if part of the distribution is taxable, then Michigan pension withholding would be required on the taxable portion of the distribution. A portion of the distribution from a Roth IRA may be taxable when a recipient receives a nonqualified distribution. Nonqualified distributions from Roth IRAs are determined by reference the Internal Revenue Code.

  4. A pension administrator withholds on a retiree’s distribution in January and pays the withheld money to the Department in February. The pension administrator later discovers that the distribution was not subject to income tax. How can the retiree recover the withheld tax?

    In most cases, the pension administrator could directly refund the withheld amount to the retiree. Pension administrators can use the same procedures that are available to employers under the Michigan Administrative Code R 206.22(1). The rule provides that “[i]f an employer over withholds income tax from an employee’s wages, or if he withholds Michigan tax where he should not have withheld Michigan tax, he may repay the amount withheld in error to the employee at any time within the same calendar year. … The employer may adjust his records internally and deduct the amount refunded from the tax owing on his next tax return ….”

    Example.   A pension administrator deducted $150 from George’s January pension distribution and paid the withholding to the Department on its January return. However, George was born in 1939 and owes no tax on his pension. The pension administrator could pay George the $150 that was mistakenly withheld and then reduce its February withholding payment to the Department by $150. The pension administrator would simply have $150 too much in its January monthly withholding return and $150 too little in its February monthly withholding return. At the end of the year when the pension administrator files its Sales Use and Withholding annual return (form 165) it would reconcile its total withholding for the year against its monthly returns and against the withholding reported on 1099Rs.

    If the pension administrator is unable to repay the retiree by way of internal adjustments to its monthly withholding returns, the retiree will not be able to seek a refund from the Department until the retiree files an income tax return following the close of the tax year.

  5. Is there a minimum one time distribution amount from a taxable pension distribution that does not require Michigan tax withholding?

    One time distributions from employer retirement plans or IRAs are only subject to Michigan pension withholding if the distribution exceeds the exemption allowance for the number of personal exemptions claimed on line 5 of the MI W-4P.

    Note: This applies to any one time distribution not just those that fall under the minimum distribution rules.

    For a person claiming one exemption in 2013, the distribution would have to be in excess of $3,950. For a person claiming 0 exemptions, withholding payments of less than $1 are not required.

  6. Due to the 2012 changes, are Michigan withholding requirements on distributions from an Employee Stock Ownership Plan (ESOP) voluntary or mandatory?

    Michigan's new pension withholding requirements are mandatory on retirement or annuity payments that will be taxable to the recipient and reported by the payor on a 1099-R form at the end of the year.

    If distributions from an ESOP retirement plan meet these conditions, Michigan's pension withholding is mandatory except to the extent provided for on a MI W-4P submitted by a recipient.

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Payments/Filing

  1. How can I make withholding Payments?
    • By Mail
      • Use Form 160 (either monthly or quarterly)
    • By electronic filing
      • Must complete EFT application (Form 2248 or 2328)
      • Eliminates requirement to file monthly or quarterly paper returns
        • Must file paper Annual Return (Form 165)
  2. How often do I make payments?
    1. If the annual tax due is less than $750 the company should file and pay annually. Use Form 165 and submit by mail.
    2. If the annual tax due for the year is between $750 and $3,600 the company should file and pay quarterly. Use Form 160 and submit by mail. Companies within this range also have the option to register for EFT payments. In doing so, the company must make monthly payments, instead of quarterly payments. The Form 160 and payment are submitted electronically if the company chooses to register for EFT The annual return, Form 165, must be filed and submitted by mail.
    3. If the annual tax due for the year is over $3,600 the company must file and pay monthly. Use Form 160 and submit by mail. Companies within this range also have the option to register for EFT payments. The Form 160 and payment are submitted electronically if the company chooses to register for EFT. The annual return, Form 165, must be filed and submitted by mail.
  3. What is the threshold for electronic filing?

    Electronic filing can be used to submit payments and file monthly or quarterly returns. Companies expecting to pay more than $40,000 each month are required to pay by EFT.

    The Annual Return for Sales, Use and Withholding Taxes (Form 165) cannot be submitted electronically and must be paper filed. Visit www.michigan.gov/business or see the instructions for Form 165 for filing requirements.

  4. How do I report at the end of the year?

    Include any Michigan withholding reported on a 1099-R on Form 165. See the Sales, Use, and Withholding Tax Forms and Instructions (Form 78) for more information on filing Form 165.

  5. We are registered to deposit employee withholding with the state. Do we have to register again as a pension administrator in order to deposit the withholding from our members IRA withdrawals? Do we have to deposit IRA withholding separate from employee monthly withholding?

    Generally, IRA withholding payments and returns can be remitted and filed on the same Michigan 160 and 165 forms used for payroll withholding. Additional registration and separate deposits are not required.

    However, if a third party payroll service or administrator is used to file and pay employee withholding, a separate registration must be done for the required IRA withholding.

Withholding for Pension Administrators

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 Replacement Check and/or Replacement Home Heating Draft
I haven't received my check or draft what should I do?

Check your refund status at "Check My Income Tax Info". You may submit a web request for additional information. Include your current address and day time phone number.

For privacy and security reasons you will be asked for your social security number, name, tax year, adjusted gross income or total household resources and filing status.

Click on the above link and follow these steps:

  1. Select the "Ask Treasury a Question" button on that page and follow the directions.
  2. After verification of your identification, choose the appropriate link "Ask Treasury a Question".
  3. You will be asked to enter the tax year, your adjusted gross income or total household resources and filing status. Follow the directions given on the next page to request your check or draft be reissued. You must include your complete current address in your request.
What should I do if my check or draft has been cancelled?

Your check has been returned as undeliverable. To request that your check or draft be reissued, use the "Check My Income Tax Info" site.

For privacy and security reasons you will be asked for your social security number, name, tax year, adjusted gross income or total household resources and filing status.

Click on the above link and follow these steps:

  1. Select the "Ask Treasury a Question" button on that page and follow the directions.
  2. After verification of your identification, choose the appropriate link "Ask Treasury a Question".
  3. You will be asked to enter the tax year, your adjusted gross income or total household resources and filing status. Follow the directions given on the next page to request your check or draft be reissued. You must include your complete current address in your request.
What should I do if my check or draft has been paid, and I did not cash it?

To request a copy of the paid check or the heat provider payment information for your draft, use the "Check My Income Tax Info" site.

For privacy and security reasons you will be asked for your social security number, name, tax year, adjusted gross income or total household resources and filing status.

Click on the above link and follow these steps:

  1. Select the "Ask Treasury a Question" button on that page and follow the directions.
  2. After verification of your identification, choose the appropriate link "Ask Treasury a Question".
  3. You will be asked to enter the tax year, your adjusted gross income or total household resources and filing status. Follow the directions given on the next page to request your check or draft be reissued. You must include your complete current address in your request.
My check or draft has been damaged, what should I do?
Mail the remains of the check or draft with a request for a replacement.

Mail checks to:

Michigan Department of Treasury
Office of Financial Services
P.O. Box 30788
Lansing, MI 48909

Mail drafts to:

Michigan Department of Treasury
Customer Contact
P.O. Box 30757
Lansing, MI 48909

If you have moved, include your new address and day time phone number. Allow 30 to 45 days for the replacement check or draft to be received.

What should I do if my check or draft is lost or stolen?

To request a stop payment be placed on the check or draft use the "Check My Income Tax Info" site.

For privacy and security reasons you will be asked for your social security number, name, tax year, adjusted gross income or total household resources and filing status.

Click on the above link and follow these steps:

  1. Select the "Ask Treasury a Question" button on that page and follow the directions.
  2. After verification of your identification, choose the appropriate link "Ask Treasury a Question".
  3. You will be asked to enter the tax year, your adjusted gross income or total household resources and filing status. Follow the directions given on the next page to request your check or draft be reissued. You must include your complete current address in your request.

You will receive an affidavit in the mail within 30 to 45 days requesting your signature as proof of the lost/stolen draft. Promptly mail affidavit back to the address included on the form. Allow 30 to 45 days for the replacement check or draft to be received.

Note: If you locate your check or draft after you have requested a stop payment, contact us before you attempt to cash/deposit it.

My name is incorrect on my check or draft, what should I do?

If the name does not match due to a life change such as marriage or divorce, please submit copies of the following verification documents: 

  • divorce decree or marriage license
  • driver license or state I.D. showing your new name
Write 'Void' across the front of the check or draft and return it to our department. Include a request for replacement along with a brief statement as to why the check or draft is being returned and the appropriate verification documents.

Mail checks to:

Michigan Department of Treasury
Office of Financial Services
P.O. Box 30788
Lansing, MI 48909

Mail drafts to:

Michigan Department of Treasury
Customer Contact
P.O. Box 30757
Lansing, MI 48909

Allow 60-90 days for the replacement check and/or draft. If you have moved, include your new address and day time phone number.

What should I do if the amount of my check or draft is incorrect?

Your return may have been adjusted based on the information provided and/or information available from other sources.

If your return was adjusted a detailed explanation was sent describing the adjustments made to your return. If you have additional questions use the "Check My Income Tax Info" site.

For privacy and security reasons you will be asked for your social security number, name, tax year, adjusted gross income or total household resources and filing status.

Click on the above link and follow these steps:

  1. Select the "Ask Treasury a Question" button on that page and follow the directions.
  2. After verification of your identification, choose the appropriate link "Ask Treasury a Question".
  3. You will be asked to enter the tax year, your adjusted gross income or total household resources and filing status. Follow the directions given on the next page to request your check or draft be reissued. You must include your complete current address in your request.
You must submit documentation for a dispute to be reviewed.

View the Home Heating Credit (MI-1040CR-7) ADJUSTMENT or DENIAL for further information.



 Residency & Non-Residency Income
Credit for Income Tax Outside Michigan (Schedule 2) Estimator
See Credit for Income Tax Outside Michigan (Schedule 2) Estimator
I moved into or out of Michigan during the year. Do I still need to file a Michigan income tax return (MI-1040)?
You are considered a part-year resident if, during the year, you move your permanent home into or out of Michigan. You must pay Michigan income tax on income you earned, received, or accrued while living in Michigan. You must attach the Schedule NR (Michigan Nonresident and Part-Year Resident Schedule) to allocate your income to Michigan and other states.

Please refer to the MI-1040 instruction booklet for more information on part-year residency.

Am I required to file a Michigan income tax return (MI-1040) if I am a resident of a reciprocal state and worked in Michigan?

If you had Michigan taxes withheld and are a resident of a reciprocal state, you must file an MI-1040, Schedule NR, Schedule 1 and Schedule W to claim a refund of any Michigan withholding tax. Out-of-state students attending a Michigan college or university are considered nonresidents.

I am a resident of another state and I worked in Michigan last year. Am I required to file a Michigan income tax return (MI-1040)?

You must file a Michigan income tax return and pay Michigan income tax on salary, wages and other employee compensation for work performed in Michigan.

If you are a resident of another state, you must file an MI-1040, Schedule NR, Schedule 1 and Schedule W. Additional forms may also be required for your return. Out-of-state students attending a Michigan college or university are considered nonresidents.

If you are a resident of Illinois, Indiana, Kentucky, Minnesota, Ohio or Wisconsin view the link below:

Am I required to file a Michigan income tax return (MI-1040) if I am a resident of a reciprocal state and worked in Michigan?
I am a Michigan resident. Are my wages earned in another state taxable in Michigan?

If you are a Michigan resident, all of your income is subject to Michigan tax, no matter where it is earned, except income reported on federal schedule C, C-EZ, E or F earned from out-of-state business activity.

A Michigan resident may qualify for a non-refundable tax credit for tax paid to another government unit outside of Michigan, including:

  • A nonreciprocal state
  • A local government unit outside Michigan, including tax paid to a city located in reciprocal states
  • The District of Columbia
  • A Canadian province

The credit for taxes paid to another state is not available for:

  • salaries and wages earned in a state that has a reciprocal agreement with Michigan or
  • earnings not included in your Michigan taxable income

Residents of reciprocal states working in Michigan, do not have to pay Michigan tax on their salaries or wages earned in Michigan.  The following states are reciprocal with Michigan: Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin.

If a Michigan resident erroneously had income tax withheld for a reciprocal state on salaries and wages earned there, it is the Michigan resident's responsibility to file a nonresident tax return with that state to get a refund of the tax withheld in error.

Credit for Income Tax Imposed by Government Units Outside Michigan Estimator

I am a resident of a reciprocal state. How do I or must I report the gambling winnings that I won at a Michigan casino or horse race track?

All taxpayers, regardless of residency, must report gambling winnings won in Michigan on form MI-1040.

The reciprocal agreement does not apply to gambling winnings. Prizes won from Michigan casinos or race tracks by a nonresident taxpayer after September 30, 2003 are subject to Michigan income tax.

I moved into or out of Michigan during the year. Could I qualify for a property tax credit?
You may be eligible to claim a property tax credit if all of the following apply:
  • For years 2012 and forward:
    • Your homestead is in Michigan
    • You were a resident of Michigan for at least six months during the year
    • You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied
    • If you own your home, your taxable value is $135,000 or less
    • Your total household resources are $50,000 or less. Part-year residents must annualize total household resources to determine if the credit reduction applies.
      (If 100% of your total household resources are received from the Department of Human Services, you do not qualify)
  • For 2011 and prior years:
    • Your homestead is in Michigan
    • You were a resident of Michigan for at least six months during the year
    • You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied
    • Your household income is $82,650 or less. Part-year residents must annualize household income to determine if the credit reduction
      (If 100% of your household income is received from the Department of Human Services, you do not qualify)
Are out-of-state students attending a Michigan College or University considered nonresidents?
Yes. They are considered nonresidents and are not eligible for the Homestead Property Tax Credit (MI-1040CR) or Home Heating Credit (MI-1040CR-7).  If a nonresident student earned wages in Michigan, they may be required to file a MI-1040  & Schedule NR.
 Roth IRA
Are contributions to a Roth IRA deductible on the Michigan income tax return?
The Michigan income tax Act does not provide for the subtraction of contributions to Roth IRAs. Qualified distributions from the Roth IRA are not included in adjusted gross income (AGI) and therefore, these contributions to Roth IRAs are not deductible on the Michigan income tax return.
Are conversions from a regular IRA to a Roth IRA subject to Michigan income tax?
Yes, to the extent the conversion amount is included in federal adjusted gross income and the taxpayer is a Michigan resident. However, the rollover distribution from a regular IRA qualifies for the pension subtraction, within the limitations of the statute, if the individual is at least 59 1/2 years of age when the rollover occurs.
Are distributions from a Roth IRA subject to Michigan income tax?
Distributions from Roth IRAs will not be subject to Michigan income tax if the amount is not included in federal adjusted gross income.
Are distributions from a Roth IRA included in total household resources/household income for purposes of computing a property tax credit, a farmland preservation credit, and/or a home heating credit?

The following must be included in your total household resources/household income:

  • A conversion from a regular IRA to a Roth IRA in the year the income is included in the taxpayer’s federal adjusted gross income (AGI).
  • The amount of a qualified distribution in excess of a taxpayer’s contributions (conversion or regular contributions).
  • A nonqualified or taxable distribution from a Roth IRA to the extent it is included in a taxpayer’s federal AGI.

Investment losses from the liquidation of a Roth IRA are not allowed in total household resources/household income.

Are rollovers from a regular IRA to a Roth IRA included in total household resources/household income for purposes of computing a property tax credit, a farmland preservation credit, and/or a home heating credit?

Yes. The rollover amount is included in total household resources/household income.

 Service Fee/PILOT Housing
What is Service Fee/PILOT (payment in lieu of taxes) housing?
Service Fee/PILOT housing is an agreement between a municipality and a property owner (private or public) to pay a service fee instead of property taxes. Regardless of the amount of rent paid, the Income Tax Act provides that a renter living in Service Fee/PILOT housing must calculate the property tax credit using only 10% of rent paid. Often, Service Fee/PILOT housing is low income or senior citizen housing that can include an apartment or the rental of a single family home.

Important Note: It is the renter's responsibility to determine if the rental property is Service Fee/PILOT housing before claiming a credit. Service fees are typically less than property taxes.

You can find out if a property is subject to Service Fee/PILOT housing by contacting your city/township/county office.
How do I find out if my rental property is Service Fee/PILOT (payment in lieu of taxes) housing?
You can find out if a property is subject to Service Fee/PILOT housing by contacting your city/township/county office. Often, Service Fee/PILOT Housing is low income or senior citizen housing that can include apartment occupancy or the rental of a single family home.
Why am I not allowed to use the 20% (standard amount) of my annual rent to calculate my homestead property tax credit if I live in Service Fee/PILOT (payment in lieu of taxes) housing?
Regardless of the amount of rent paid, the Income Tax Act provides that a renter living in Service Fee/PILOT housing must calculate the property tax credit using only 10% of rent paid.

Service Fee/PILOT Housing is a program with an agreement between a municipality and a rental property owner (private or public) to pay a service fee instead of property taxes.
Why did I receive a reduced Homestead Property Tax Credit (or a notice of denial) due to residing in Service Fee/PILOT (payment in lieu of taxes) housing?

Upon review of your homestead property tax credit, it was determined the address from which you filed is Service Fee/PILOT (payment in lieu of taxes) housing. Your return was filed using 20% of your total rent to calculate your property tax credit.

Regardless of the amount of rent paid, the Income Tax Act provides that a renter living in Service Fee/PILOT housing must calculate the property tax credit using only 10% of rent paid.

Service Fee/PILOT housing is a program where there is an agreement between a municipality and a rental property owner (private or public) to pay a service fee instead of property taxes.

If 10% of your eligible rent does not exceed 3.5% of your total household resources/household income, you do not qualify for a homestead property tax credit.

Important Note: It is the renter's responsibility to determine if the rental property is Service Fee/PILOT housing before claiming a credit. Service fees are typically less than property taxes. You can find out if a property is subject to Service Fee/PILOT housing by contacting the city/township/county office.

 Subtractions to Income
May I subtract a rollover from a regular IRA to a Roth IRA?

If you are at least 59 ½ in the year the rollover occurs, you may deduct the rollover as a retirement benefit within the limits for subtracting retirement income.

May I subtract a distribution from a Roth IRA?

No. Distributions from a Roth IRA are already excluded from Adjusted Gross Income (AGI) on your federal return and therefore may not be subtracted on the Michigan return.

May I subtract a distribution from deferred compensation?
  • A 457 plan does not meet the qualifications for subtraction. You cannot subtract distributions from a 457 plan.
  • Distributions from a 401(k) or 403(b) plan are deductible if they are the result of the employer's contributions or employee contributions required by the plan. Employee's contributions required by the plan to obtain an employer match are considered mandated. Amounts distributed from a 401(k) or 403(b) plan that allows the employee to set the amount of compensation to be deferred and does not prescribe retirement age or years of service do not qualify as retirement and pension benefits.
  • You may not subtract any distributions that are reported by the payer on a W-2 Form.
May senior citizens take a subtraction for dividends, interest and capital gains?

Senior Citizens age 69 and older may subtract dividends, interest and capital gain to the extent they are included in Adjusted Gross Income (AGI). The subtraction is limited to $10,929 for single filers and to $21,857 for joint filers for 2014. These limits must be reduced by any subtraction for retirement benefits.

Example:

Senior Citizen filing a single return with $5,000 pension subtraction is only allowed an interest subtraction of $5,929 ($10,929 - $5,000 = $5,929).

Mary is 68 years old and has pension of $5,000 and interest income of $4,000.

Maximum interest subtraction $10,929
Less pension subtraction - $5,000
Allowable interest subtraction $5,929

Mary can subtract all $4,000 of interest income.

Is my public pension allowed as a subtraction if I moved from another state into Michigan?

Pursuant to legislative changes, for tax year 2012 and forward, the allowable pension deduction is limited based upon the birth year of the single filer or the eldest spouse when filing a joint return.

For recipients born before 1946 Some states allow a full deduction or exemption for residents who receive a Michigan public pension. Therefore, Michigan will allow a deduction for the full amount included in AGI for Michigan residents receiving public pensions from the following states: Alaska, Florida, Hawaii, Illinois, Massachusetts, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington and Wyoming.

For tax year 2014, the subtraction of public pension from other states is limited to the greater of:

  • $49,027 for a single filer or
  • $98,054 for a joint return or
  • the amount allowed as a deduction by the other state to its residents on public pension received from Michigan.

For recipients born during the period January 1, 1946 through January 1, 1948: Filers born during the period January 1, 1946 through January 1, 1948 who reached age 67 on or before December 31, 2014, or where the older spouse was born during the period January 1, 1946 through January 1, 1948 and reached age 67 on or before December 31, 2014 if filing a joint return, are eligible for a deduction against all income and will no longer deduct pension and retirement benefits. The deduction is $20,000 for a return filed as single or married, filing separately, or $40,000 for a married, filing jointly return.

For recipients born after January 1, 1948 through December 31, 1952: The first $20,000 for single or married filing separately or $40,000 for married filing jointly, of all private and public pension and annuity benefits may be subtracted from Michigan taxable income. Benefits in excess of these limits are taxable to Michigan.

For recipients born after 1952 All pensions (private and public) and retirement benefits are taxable to Michigan.

For more information and assistance in calculating your subtraction see Pension Information

When do I need to file an MI-1040D, Adjustment of Capital Gains and Losses?

The MI-1040D is filed only when there is a difference between your federal capital gains/losses and Michigan capital gains/losses. A difference will only occur for one of the following reasons:

  • Sale of an asset that was acquired before October 1, 1967, the date the Michigan Income Tax Act went into effect. The gain attributable to the period before October 1, 1967 is not subject to Michigan income tax.
  • The gain from U.S. obligations. Gains/losses from the sale of U.S. obligations are not subject to Michigan income tax.
  • Gains or losses from the sale of property subject to the allocation or apportionment provisions, e.g. sale of real property located in the state of Iowa. Gains/losses from the sale of real property is taxable in the state in which the property is located.

View Information For Mortgage Foreclosure Or Home Repossession And Your Michigan Income Tax Return

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 Taxable Income
What is taxable income?

Taxable income is all income subject to Michigan income tax.

View a list of items included in Michigan taxable income.

This list serves as a guide and is not intended to replace the law. [MCL 206.30]

What is my federal adjusted gross income (AGI)?

Your Michigan return is based on AGI, as reported on your federal return.

All questions regarding your federal income tax return should be directed to the Internal Revenue Service by calling 1-800-829-1040 or by visiting www.irs.gov.

View a list of items included in AGI. This list serves as a guide and is not intended to replace the law.

Is my foreign income taxable in Michigan?

A Michigan resident who works abroad may elect to exclude his or her foreign income under the provisions of RAB 2002-5, which provides an explanation of the treatment of foreign income for a Michigan resident. This income is not included in federal adjusted gross income (AGI), therefore, is not subject to Michigan tax. All income outside of this exclusion would be subject to Michigan tax for a resident, with the exception of income that is attributable to another state.

Please note: You must include foreign income in your total household resources/household income when computing a homestead property tax credit and/or home heating credit.

Other helpful information:

Is my public pension taxable if I moved from another state into Michigan?

Pursuant to legislative changes, for tax year 2012 and forward, the allowable pension deduction is limited based upon the birth year of the single filer or the eldest spouse when filing a joint return.

For recipients born before 1946: Some states allow a full deduction or exemption for residents who receive a Michigan public pension. Therefore, Michigan will allow a deduction for the full amount included in AGI for Michigan residents receiving public pensions from the following states: Alaska, Florida, Hawaii, Illinois, Massachusetts, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington and Wyoming.

For tax year 2014, the subtraction of public pension from other states is limited to the greater of:

  • $49,027 for a single filer or
  • $98,054 for a joint return or
  • the amount allowed as a deduction by the other state to its residents on public pension received from Michigan.

For recipients born during the period January 1, 1946 through January 1, 1948: Filers born during the period January 1, 1946 through January 1, 1948 who reached age 67 on or before December 31, 2014, or where the older spouse was born during the period January 1, 1946 through January 1, 1948 and reached age 67 on or before December 31, 2014 if filing a joint return, are eligible for a deduction against all income and will no longer deduct pension and retirement benefits. The deduction is $20,000 for a return filed as single or married, filing separately, or $40,000 for a married, filing jointly return.

For recipients born after January 1, 1948 through December 31, 1952: The first $20,000 for single or married filing separately or $40,000 for married filing jointly, of all private and public pension and annuity benefits may be subtracted from Michigan taxable income. Benefits in excess of these limits are taxable to Michigan. .

For recipients born after 1952: All pensions (private and public) and retirement benefits are taxable to Michigan.

For more information and assistance in calculating your subtraction see Pension Information.

Is foster care income taxable?

Generally, foster care payments are not subject to federal or Michigan income tax. However, in a few situations when you receive a W2 or 1099, you will be subject to federal income tax. Those payments would be subject to Michigan income tax to the extent that they are included in your federal adjusted gross income.

Note: Any non-taxable foster care payments must be included in total household resources/household income when calculating a property tax credit, home heating credit or farmland preservation credit.

Can I subtract my gambling losses?

Gambling/lottery winnings are subject to Michigan income tax to the extent that they are included in your federal adjusted gross income. The Michigan Income Tax Act has no provision to subtract your losses on the Michigan income tax return. Also, you cannot net the winnings and losses.

Note: You may exclude the first $300 won from gambling, bingo, awards or prizes from total household resources/household income. Anything over $300 must be included in total household resources/household income. Include gambling/lottery winnings on the line for "Alimony and other taxable income" on the MI-1040CR, MI-1040CR-2, or MI-1040CR-7.

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View related information on US Obligations.
View Information For Mortgage Foreclosure Or Home Repossession And Your Michigan Income Tax Return
View information for Mortgage Foreclosure or Home Repossession and Your Michigan Income Tax Return
 1099G
1099G Estimator
Explanation for 1099G
Please see the document Explanation for 1099G pdf icon
When are the Substitute Form 1099-G mailed?

The 1099-G forms are mailed in January. This form reports the amount of your state income tax refund paid in the prior year that may be considered part of your federal adjusted gross income (AGI) if you itemize deductions. Duplicate forms are not available.

Federal law requires the State of Michigan to report your tax refund plus interest paid.

The amount reported on your 1099-G should be reported on Michigan Schedule 1, line 16 if included in your adjusted gross income.The 1099-G does not include refunds for homestead property tax or other credits.

Why did I receive the Substitute Form 1099-G?
If you claimed itemized deductions on your 2013 federal income tax return and received a Michigan tax refund in 2014, you will be mailed a 2014 Michigan Substitute 1099-G. This is not a bill. This is an information statement only.
View Explanation for 1099-G
Why doesn't the amount reported on my 1099-G agree with what I actually received?

The 1099-G you received in 2015 shows the amount of your 2013 refund and any prior year refunds issued to you in 2014.

Review all refunds issued to you and the tax returns filed during the year in question; add to the refund amount, any of the following which are included on the 1099-G:

  • Amounts credited forward to 2014 estimated tax
  • Prior year refunds issued in 2014
  • Refund amounts intercepted by Treasury to apply to back tax Assessments, State Agency Collections (e.g. Driver Responsibility Fee) or other 3rd Party Garnishments.
  • Any portion of a refund designated on your return to pay Use tax.
  • Amount contributed on the Michigan Voluntary Contribution Schedule
Subtract refundable credits which are not included on the 1099-G:

  • Homestead Property Tax Credit
  • Farmland Preservation Credit
  • Qualified Adoption Expenses credit
  • Stillbirth Credit
  • Earned Income Tax Credit
  • Energy Efficient Qualified Home Improvement Credit
  • Historic Preservation Tax Credit

This figure should match the amount on your 1099-G.

What is the State of Michigan federal identification number that is used on the 1099G?
The Payer's name, address and federal identification number is:

State of Michigan
Department of Treasury
Lansing, MI 48922
Federal I.D. #38-6000134