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MICHIGAN DEPARTMENT OF TREASURY

MICHIGAN DEPARTMENT OF TREASURY. 2012. PURPOSE. To explain the filing requirements Who must file a Michigan Income Tax Return (MI-1040) Give instructions and guidelines on how to complete the MI-1040 and other Michigan forms. FILING REQUIREMENTS.

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MICHIGAN DEPARTMENT OF TREASURY

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  1. MICHIGAN DEPARTMENT OF TREASURY 2012

  2. PURPOSE • To explain the filing requirements • Who must file a Michigan Income Tax Return (MI-1040) • Give instructions and guidelines on how to complete the MI-1040 and other Michigan forms

  3. FILING REQUIREMENTS • Federal tax laws, rules, forms, etc. are separate and distinct from each state’s • Since state returns are built off federal information, taxpayers first fill out federal returns and then applicable state returns

  4. NON RESIDENT ALIENS • If you filed a nonresident alien federal return (1040NR or 1040NR-EZ) and you have Michigan income, you must file a Michigan income tax return. • Nonresident aliens for federal tax purposes are nonresidents for Michigan tax purposes.

  5. NON RESIDENT ALIENS • You are a nonresident of Michigan when your domicile is NOT in Michigan • What is domicile? • Permanent and principal home to which a person, wherever temporarily located, ALWAYS intends to return • A person has only 1 domicile at a time

  6. NON RESIDENT ALIENS • Nonresidents CANNOT claim either: • The Homestead Property Tax Credit (MI-1040CR) OR • The Home Heating Credit (MI-1040CR-7) • A taxpayer must be a Michigan resident to claim these credits

  7. DO I NEED TO FILE A 2012 RETURN ? • If Adjusted Gross Income (AGI) is $3,763 or less, NO return is needed EXCEPT to claim a refund. • If Adjusted Gross Income (AGI) is greater than $3,763: YES, you must file. • Michigan allows you to claim the same number of exemptions as your federal return allows you to claim.

  8. 2012 REMINDERS • Tax Rate 4.33% • Exemption Allowance $3,763 • 2012 MI-1040 is due April 15, 2013 • Statute of Limitations for Refunds • can claim refund for up to 4 years from the date the return was originally due

  9. BEFORE YOU BEGIN Gather*: • U.S. 1040NR or U.S. 1040NR-EZ • 1042-S • W-2 • 1099 (Misc, Interest, etc.) * This list is not exhaustive

  10. FORMS Use the Adjusted Gross Income from your federal return on your state return: • If you prepared a U.S. 1040-NR  Line 36 equals Line 10 of MI-1040 • If you prepared a U.S. 1040-NR-EZ  Line 10 equals Line 10 of MI-1040

  11. MICHIGAN FORMS TO FILE • MI-1040 - Michigan Individual Income Tax Return (all MI returns require this form) • Schedule NR – Nonresident Schedule • Schedule W – Withholding Tax Schedule • Schedule 1 - Additions & Subtractions

  12. MICHIGAN FORMS TO FILE • Schedule NR • If you filed as a nonresident alien for federal tax purposes, include this for MI. • Allocates income between Michigan and other states if necessary • Prorates personal exemption allowance

  13. MICHIGAN FORMS TO FILE • Schedule W • Reports State of Michigan income tax withholding information on this form. * This information is typically obtained from your W-2 or 1099 form. • No need to mail W-2 or 1099 form with MI return form

  14. MICHIGAN FORMS TO FILE • Schedule 1 Additions & Subtractions • Reports income to be added to or subtracted from federal AGI to determine Michigan taxable income • Subtracts wages earned in other states • Nonresidents can subtract scholarships and/or fellowships

  15. INCOME SUBJECT TO TAX For Nonresidents: • Wages, salaries, commissions and other personal service income performed in Michigan • Business income in Michigan • Proceeds from the Michigan Lottery • Michigan Casino & horse race winnings

  16. TAX EXEMPT INCOME • Common Federal Form 1042-S Code • (Code 15) – Scholarship used for tuition, fees, books & supplies is tax-exempt • (Code 15) – Scholarship used for room & board is taxable by IRS unless exempt by treaty • State of MI does not tax either type of scholarship income to non residents.

  17. TAX EXEMPT INCOME • Common Federal Form 1042-S Codes • (Code 18) – Money received for teaching or research is taxable unless exempt by treaty • (Code 19) – Money received as compensation during study and training is taxable unless exempt by treaty • The state of Michigan taxes these types of income unless exempt by treaty.

  18. ELECTRONIC FILING

  19. ELECTRONIC FILING • Federal forms 1040NR and 1040NR-EZ cannot be e-filed. • Therefore nonresidents cannot use the Fed-State e-file option.

  20. ELECTRONIC FILING STATE-ONLY E-FILE • Filers who cannot e-file using the Fed-State option can use the State only e-file option.

  21. ELECTRONIC FILING STATE-ONLY E-FILE • Software companies that support the State-Only e-file option are available on the MI Treasury website: www.MIfastfile.org

  22. PAPER FILING MI RETURNS • The Individual Income Tax Instruction Book has detailed instructions on how to complete and assemble paper returns for the state of Michigan. • This booklet can be found on the Michigan Department of Treasury’s website under Individual Income Tax Forms.

  23. WHERE TO FILE • For refund, credit or zero returns, mail return to: Michigan Department Of Treasury Lansing, MI 48956

  24. WHERE TO FILE • If return and payment, mail to: Michigan Department Of Treasury Lansing, MI 48929 • If mailing payment after e-filing, mail form MI-1040-V & payment to: Michigan Department of Treasury PO BOX 30774 Lansing, MI 48909-8274

  25. CONTACT US MICHIGAN INCOME TAX CUSTOMER CONTACT DIVISION (517) 636-4486 Or www.michigan.gov/taxes

  26. FREQUENTLY ASKED QUESTIONS(FAQ’S) • Are Michigan nonresidents required to file a return if they only have scholarship income? Although MI does not tax scholarship income, MI Department of Treasury recommends filing a return anyway in order to avoid unnecessary inquiries from the state. • As a Michigan nonresident, can I file for the Property Tax / Renters Credit or the Home Heating Credit? No

  27. FREQUENTLY ASKED QUESTIONS(FAQ’S) • Is there a contact number that international students and scholars may call for information? Use the general customer contact number, (517) 636-4486. Representatives may not give step-by-step instructions on how to fill out your specific return. • If I am a resident for federal tax purposes, am I also a Michigan tax resident? Only if Michigan is your permanent home and you intend to return to MI each time you are absent. See MI-1040 instructions for details.

  28. FREQUENTLY ASKED QUESTIONS(FAQ’S) • All nonresidents for federal tax purposes must file Form 8843, Statement for Exempt Individuals and Individuals With a Medical Condition, even if they did not receive US source income during the year, does Michigan have a similar requirement? No. • Can a nonresident for federal tax purposes e-file Federal and State returns together? No. Nonresident federal returns cannot be e-filed; however, Michigan nonresident returns can be e-filed.

  29. FREQUENTLY ASKED QUESTIONS (FAQ’S) • Is there a filing requirement if only income is from another state and Adjusted Gross Income (AGI) is more than $3,763? Not required to file a Michigan income tax return. For a nonresident, you would consider only Michigan items included in federal adjusted gross income to determine if the filing of a return is required. However, someone who filed a federal return using a Michigan address, and did not file a Michigan return may receive correspondence from Michigan inquiring why a Michigan return was not filed. For this reason, it may be beneficial to file a Michigan return to demonstrate that no tax is due.

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