Michigan Tax Filing
Filing Michigan Taxes
It is tax time again – and for some new workers it’s a brand-new thing. Figuring out and filing your tax forms can be exhausting to think about – not to worry, there is help. Here you will find answers, forms and more that will make your paperwork easier, faster and less stressful. Information below will help you determine your residency status, find the correct forms you need and give you other information you need to get started.
State income tax returns for 2018 are due Monday, April 15.
Michigan charges a 4.35 percent flat tax rate on all income. This will not change until September 30, at the earliest.
In addition to state taxes, there are several localities that also charge their own local income taxes, requiring locality-specific tax forms. Check with your city or county government.
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Michigan Tax Forms
- MI Form MI-1040X - Michigan Amended Income Tax Return
- MI Tax Booklet - Michigan Individual Income Tax Booklet
- MI Schedule NR - Michigan Nonresident and Part-year Resident Schedule
- Michigan Form MI-8453 - Michigan Individual Income Tax Declaration for e-file
- Michigan Form MI-2210 - Michigan Underpayment of Estimated Income Tax
- Michigan Form MI-1040-V - Michigan Individual Income Tax e-file Payment Voucher
- Michigan Form MI-1040 - Michigan Individual Resident Income Tax Return
- MI Form 4 - Application for Extension of Time to File Michigan Tax Returns
- Michigan Schedule 2 - Michigan Nonrefundable Credits Schedule
- Michigan Form MI-1040CR-5 - Michigan Farmland Preservation Credit Form
- Michigan Taxable Income - Michigan Taxable Income Sources
- Michigan Form MI-1040CR - Michigan Homestead Property Credit Form
Determine Your Resident Status so You File the Right Forms
What Michigan form you need to file is based on your legal residency, or where your permanent, official “home address” was during 2018. Michigan identifies its residents four ways: full-time Michigan residents, part-year residents, Michigan residents who worked in another state, residents of another state who worked or earned income from other sources in Michigan.
You are a Michigan resident if your permanent home, your legal address, was in Michigan for the entire year. Even if you spent a lengthy amount of time out of state – perhaps wintering on a beach – as long as you maintained a permanent home in Michigan that you went back to, you are a full-year Michigan resident for tax purposes. You will file your state taxes using Form MI-1040, in addition to your federal tax return. Information and instructions can be found in the state form.
Michigan Part-Year Residents
If you moved to or from Michigan during 2018 – causing a change of legal residence or “home address” – you are a part-year Michigan resident. As a Michigan part-year resident, you will be taxed on all income you earned from any source during the time you lived in Michigan. You may also be required to pay tax on Michigan income earned during any time you lived in another state. File a Michigan part-year resident return by including Schedule NR with your Form MI-1040. If you also were a legal resident of another state(s) during 2018, you will need to file state tax returns for each state and send copies to the other states.
Michigan Residents Working in Another State
If you were a Michigan resident and made income in Illinois, Indiana, Kentucky, Minnesota, Ohio or Wisconsin, you will not face dual taxation. Michigan has reciprocal tax agreements with these states in which they agreed not to tax each other’s legal residents. If one of the above states does withhold income you earned in that state, it is your responsibility to secure your refund. To claim the refund, file a nonresident tax return in that other state. RAB 1988-17 provides more information on these state-to-state agreements.
If you are a Michigan resident who earned income from a Canadian province or another other state (not a reciprocal state above) then Michigan can tax the out-of-state income you earned. No matter the source location, all money earned by Michigan residents is subject to Michigan tax. An exception exists, however, regarding income earned from some out-of-state business activity and you may be able to avoid dual taxation on that non-Michigan income by using Schedule 2 to claim a credit on your Michigan return.
Nonresident –Worked in Michigan
If you are a resident of another state but worked in Michigan or earned income from a Michigan source, you must file a Michigan state tax return for all wages, salaries and compensation you received from working in Michigan. Use Form MI-1040 and Schedule NR.
If you are a resident of Ohio, Indiana, Kentucky, Illinois, Minnesota, or Wisconsin, then Michigan will not tax your work-related income because of reciprocal agreements between Michigan and your state. These state-to-state deals only affect your income from wages, salaries and other employee compensation. If you are a resident of one of these states and Michigan withheld for taxes income earned in Michigan (accidentally disregarding the reciprocal agreements), it is your responsibility to file Michigan Form MI-1040 and Schedule NR to claim the refund. RAB 1988-17 provides additional information on these state agreements to avoid dual taxation.
Note that all other taxable income that comes from Michigan sources is considered taxable income to Michigan. For more information on taxable income in Michigan see the 2018 Michigan MI-1040 Individual Income Tax Instructions (download above).
Did you travel to Michigan and gamble? Did you win? No matter your residency, all winnings from gambling at casinos or racetracks in Michigan have to be declared on a Michigan return using Form MI-1040. The state-to-state reciprocal agreements discussed above regarding wages and salaries do not apply to gambling winnings.
Generally speaking, nonresidents are required to file a Michigan tax return for all taxable income earned or gained from Michigan sources. For more information on taxable income in Michigan see the 2018 Michigan MI-1040 Individual Income Tax Instructions (download above).