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Printable Tax Form Mi 1040

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					2010 Michigan MI-1040
  Individual Income Tax
                 Forms and Instructions


        w w w. m ic h ig a n.g ov/ t a x e s


 a E-filing your return is easy, fast, and secure!                               w w w. m i fa s t f i l e .or g
 a Two-thirds (over 3.3 million) of all Michigan
   taxpayers choose e-file.
 a E-file returns are usually processed within 14
   business days (see page 4). Please allow 14 days
   before checking the status of your e-filed return.
 a Tax preparers who complete 200 or more
   Michigan Individual Income Tax returns are
   required to e-file all eligible returns supported by their software (see page 4).
 a Free e-file is available. Do you qualify?
 a Visit the Michigan Department of Treasury Web site at www.MIfastfile.org to find
   an authorized e-file provider near you, a list of resources offering this service, and
   information on free e-file services.




                               Fi l i ng D ue D at e :
                                 A pr il 1 8 , 2 0 1 1


         This booklet is intended as a guide to help complete your return. It does not take the place of the law.
                                                                                                                    1
                                            Help With Your Taxes
Self Service Options                                         Telephone Options
                                                             (517) 636-4486
The Michigan Department of Treasury (Treasury) offers        Automated Information Service
a variety of services designed to assist you, and most are
available 24 hours a day, seven days a week.                 With Treasury’s automated phone system, you can:
                                                             • Request the status of your refund.
 IMPORTANT: To obtain information about your account
 using the Internet and Telephone Options listed below,      • Request information on estimated payments.
 you will need the following information from your return:   • Order current tax year forms.
 • Social Security number of the primary filer (the filer    While most questions can be answered by the Automated
 listed first on the return)                                 Information Service, customer service representatives are
 • Tax year of the return                                    available from 8 a.m. to 4:45 p.m., Monday through Friday.
 • Adjusted gross income (AGI) or household income           Assistance is available using TTY through the Michigan
 • Filing status (single, married filing jointly, married    Relay Center by calling 1-800-649-3777 or 711. Printed
 filing separately).                                         material in an alternate format may be obtained by calling
Internet Options                                             (517) 636-4486.
www.michigan.gov/incometax
                                                             Forms
Find the following information on this Web site:
• Current year forms and instructions                        Find tax forms using the Internet and Telephone Options
• Answers to many tax preparation questions                  listed on this page. Commonly used forms are also
• Most commonly used tax forms                               available at Treasury offices (see back cover), most public
• Free assistance in preparing your return                   libraries, Northern Michigan post offices, Michigan
• Other tax time resources.                                  Secretary of State branch offices, and Department of
www.michigan.gov/iit                                         Human Services (DHS) county offices.
This secure Web site was designed specifically to protect
your personal tax information. Use this Web site to:
• Check the status of your return.
• Check estimated payments you made during the year.
• Check the status of letters you have sent to Treasury.
• Change your address.
• Ask a specific question about your account.




                               Anytime of the night or day, go to
                            www.michigan.gov/taxes
                             and look for these icons to help find
                                     answers to your questions!




2
                                             Important Information
Use Tax                                                         2010 U.S. Form 1040. If you claimed an itemized deduction
                                                                for property taxes on your 2009 U.S. Form 1040 and then
Every state that has a sales tax has a companion tax for        received a refund in 2010 from the State or your local unit
purchases made outside that state, by catalog or over the       of government for a portion of those taxes, you must include
Internet. In Michigan, that companion tax is called the “use    that refund as income on your 2010 U.S. Form 1040. If you
tax,” but might be described more accurately as a remote        have questions about the taxability (for federal tax purposes)
sales tax because it is a 6 percent tax owed on purchases       of the refunds, call the IRS at 1-800-829-1040.
made outside of Michigan. See page 9 for more information
on use tax.                                                     What You Should Know
                                                                About Your Michigan 1099-G
Tax Rate, Exemption Allowances,
and Pension and Interest Deductions                             If you itemized deductions on your 2009 federal income tax
                                                                return and received a Michigan tax refund in 2010, you will
The income tax rate for 2010 is 4.35 percent.                   be mailed a 2010 Michigan 1099-G in early 2011 that shows
For tax year 2010, the personal exemption allowance             the amount of your 2009 refund that was issued in 2010. The
remains at $3,600 and the special exemptions allowance          refund amount will include any amounts credited forward to
remains at $2,300. See page 10 for more information.            2010 estimated tax, prior year refunds issued in 2010, refund
For tax year 2010, pension benefits included in AGI from        amounts intercepted for back tax assessments or other debts
a private pension system or an Individual Retirement            (such as child support or court-ordered garnishments),
Account (IRA) are deductible to a maximum of $45,120 for        and any portion of a refund assigned to pay use tax or any
a single filer or $90,240 for joint filers.                     amount you contributed as a voluntary contribution. The
                                                                refund amount will not include homestead property tax
Senior citizens age 65 or older may be able to deduct           credits, adoption credits, or other refundable tax credits
part of their interest, dividends, and capital gains that are   claimed on the MI-1040. The 1099-G IS NOT A BILL.
included in AGI. For 2010, the deduction is limited to a        Visit www.michigan.gov/taxes for more information about
maximum of $10,058 for single filers and $20,115 for joint      your Michigan 1099-G.
filers. See Schedule 1 instructions beginning on page 12
for further details regarding pension benefits and senior       A Note About Debts
citizen interest deductions.                                    By law, any money you owe to the State and other agencies
Exemption for Qualified Disabled Veterans                       must be deducted from your refund or credit before it is
                                                                issued. Debts include money you owe for past-due taxes,
Taxpayers who either have a service-connected disability        student loans, child support due the Friend of the Court,
or have a dependent with a service-connected disability         an IRS levy, money due a State agency, a court-ordered
may be eligible to claim a $300 exemption for tax year          garnishment, or other court orders. Taxpayers who are
2010. See the instructions for line 9e on page 10.              married, filing jointly, may receive an Income Allocation to
Renewable Energy Surcharge Credit                               Non-Obligated Spouse (Form 743) after the return is filed.
                                                                Completing and filing this form may limit the portion of the
The credit has been reduced to 20 percent in 2010 and can       refund that can be applied to a debt. If Treasury applies all
only be claimed if you were billed the surcharge by your        or part of your refund to any of these debts, you will receive
electric utility company. See page 16, line 10 instructions     a letter of explanation.
for further details.
                                                                Adjusted Gross Income (AGI)
Filing Extension Granted for Military                           Throughout this booklet, we refer to adjusted gross income
Personnel Serving in a Combat Zone                              as AGI. When AGI is asked for, copy your AGI directly
United States military personnel serving in a combat zone       from your U.S. Form 1040 line 37, U.S. Form 1040A line 21,
on April 18, 2011, will be given 180 days after leaving the     or U.S. 1040EZ line 4.
combat zone to file their federal and State tax returns and
will be exempt from penalties and interest. When e-filing,      Instruction Booklets No Longer Mailed
service men and women serving in combat zones should            To help reduce costs and in recognition of the continued
enter the words “Combat Zone” in the preparer notes.            growth in electronic filing, the IRS has announced it will
When filing a paper return, print “Combat Zone” in ink on       discontinue the mailing of federal income tax forms and
the top of page 1 of the MI-1040. Visit Treasury’s Web site     instructions to taxpayers. As a result of approved budgetary
at www.michigan.gov/taxes for more information.                 savings measures and an increase in electronic filing,
                                                                the state of Michigan also will no longer mail Individual
Appeals of Adjusted Refunds or Credits                          Income Tax forms and instruction booklets to individuals.
Taxpayers have 60 days from the issuance of refund denials,     All current year forms and instructions are available at
refund adjustments, or Treasury decisions (other than final     www.michigan.gov/incometax. In addition, commonly
assessment), that may be appealed under Section 22 of the       used forms are available at Treasury offices (see back cover),
Revenue Act, to request informal conferences.                   most public libraries, Northern Michigan post offices,
                                                                Michigan Secretary of State branch offices, and Department
Property Tax Credits/Refunds                                    of Human Services (DHS) county offices. There are many
A reminder from the Internal Revenue Service (IRS).             free tax preparation services available. To find out if you
Michigan homestead property tax credit and homestead            qualify or to locate a free preparation service site near you,
exemption refunds received in 2010 may be taxable on your       visit www.michiganeic.org/freetaxprep.

                                                                                                                            3
Who Must File a Return                                              Penalty and Interest
File a return if you owe tax, are due a refund, or your AGI         Added for Filing and Paying Late
exceeds your exemption allowance. You should also file              If you file and pay late, Treasury will add a penalty of
a Michigan return if you file a federal return, even if you         5 percent of the tax due. After the second month, penalty
do not owe Michigan tax. This will eliminate unnecessary            will increase by an additional 5 percent per month, or
correspondence from Treasury.                                       fraction thereof, up to a maximum of 25 percent of the tax
• If your parents (or someone else) can claim you as a              due. If you pay late, you must add penalty and interest to
dependent on their return and your AGI is $1,500 or less if         the amount due. The interest rate through June 30, 2011,
single or married filing separately or $3,000 or less if filing     is 4.25 percent. For interest rates after June 30, 2011, visit
a joint return, you do not need to file a return unless you are     Treasury’s Web site at www.michigan.gov/taxes or call
claiming a refund of withholding.                                   (517) 636-4486.
Important: If your income subject to tax (MI-1040, line 14)         Choose e-file Instead of Paper
is less than your personal exemption allowance (line 15) and        Returns. Get Your Refund Fast!
Michigan income tax was withheld from your earnings, you
                                                                    E-filing eliminates many of the errors that lengthen
must file a return to claim a refund of the tax withheld.           processing times. E-file returns are usually processed
Renaissance Zones                                                   within 14 days. Tax preparers who complete more than 200
                                                                    income tax returns are required to e-file all eligible returns.
Certain Renaissance Zones, along with the tax benefits, will        Visit Treasury’s Web site at www.MIfastfile.org to find
continue to phase out. See instructions for Schedule 1, line        an authorized e-file provider near you, a list of resources
15, on page 13.                                                     offering this service, and information on free e-file services.
Who Must File a Joint Return
File a joint Michigan return if you filed a joint federal return.
If you filed separate federal returns, you may file separate or
joint Michigan returns. You may file a joint return only with
your spouse.
When to File Your Return
Always complete your federal tax return before your
Michigan return. You may file a Michigan return even if you
are not required to file a federal return.
Your return must be postmarked no later than April 18, 2011,
to be considered timely. Payment must be included with your
return. Make your check payable to “State of Michigan” and
write your Social Security number(s) and “2010 income tax”
on the front of the check. To avoid penalty and interest, if
you owe tax, postmark no later than April 18, 2011.
If you cannot file before the due date and you owe tax,
you may file an Application for Extension of Time to File
Michigan Tax Returns (Form 4) with your payment. See
page 6. If you are due a refund, you must file a return within
four years of the due date to obtain the refund. Keep a copy
of your return and all supporting schedules for six years.




4
                             How to Complete and File Paper Returns
Completing Michigan Forms                                      •	 Underpayment of Estimated Income Tax (MI-2210)
                                                               •	 Withholding Tax (Schedule W)
Treasury captures the information from paper income tax        •	 Adjustments of Capital Gains and Losses (MI-1040D)
returns using an Intelligent Character Recognition (ICR)
                                                               •	 Adjustments of Gains and Losses From Sales of Business
process. If completing a paper return, avoid unnecessary
                                                               Property (MI-4797)
delays by following the guidelines below so your return is
processed quickly and accurately.                              •	 Voluntary Contributions Schedule (4642)
                                                               •	 Energy Efficient Qualified Home Improvement Credit
• Use black or blue ink. Do not use pencil, red ink, or        (4764)
felt tip pens. Do not highlight information.
• Print using capital letters (UPPER CASE). Capital            If you are also filing a Home Heating Credit Claim
                                                               (MI-1040CR-7) do not staple it to your return; fold it and
letters are easier to recognize.
                                                               leave it loose in the envelope.
• Print        numbers       like    this:    0123456789
Do not put a slash through the zero ( ) or seven ( ).          Important Reminder: If you do not include all the
• Fill check boxes with an [X]. Do not use a check mark        required attachments with your return, your refund may be
[ a].                                                          reduced, denied, or delayed. Send original forms. Do not
• Leave lines/boxes blank if they do not apply or if the       send photocopies.
amount is zero unless otherwise directed.                      Do not staple multiple prior year returns together.
• Do not write extra numbers, symbols, or notes on the
return, such as cents, dashes, decimal points, commas, or      Where to Mail Your Return
dollar signs. Enclose any explanations on a separate sheet     Mail refund, credit, or zero due returns to:
unless you are instructed to write explanations on the              Michigan Department of Treasury
return.                                                             Lansing, MI 48956
• Stay within the lines when entering information in
boxes.                                                         If you owe tax, mail your return to:
• If a form is multiple pages, all pages must be filed.             Michigan Department of Treasury
• Report all amounts in whole dollars. Round down                   Lansing, MI 48929
amounts of 49 cents or less. Round up amounts of 50 cents
or more. If cents are entered on the form, they will be        Make check payable to “State of Michigan” and print
treated as whole dollar amounts.                               your SSN and “2010 income tax” on the front of your
                                                               check. To ensure accurate processing of your return, send
When You Have Finished                                         one check for each return type. Do not staple your check
If the tax preparer is someone other than the taxpayer, he     to your return.
or she must enter the business name and address of the         Do not mail your 2010 return in the same envelope with a
firm he or she represents and Preparer Tax Identification      return for years prior to 2010; mail your 2010 return in a
Number (PTIN), Federal Employer Identification Number          separate envelope.
(FEIN), or Social Security number (SSN). Check the box
to indicate if Treasury may discuss your claim with your       Important Reminders
tax preparer.                                                  • Missing      pages.     The    MI-1040,    MI-1040CR,
Assemble your returns and attachments and staple in            MI-1040CR-2, MI-1040CR-7, and MI-1040X are two-page
the upper-left corner. (Do not staple your check to your       forms. Both pages must be completed and submitted for
return.) If an Individual Income Tax Barcode Datasheet         Treasury to process the form timely.
(Form 4220) is part of your filing, it must be the first       • Using correct tax year forms. Appropriate tax year
item in the sequence followed by MI-1040. A sequence           forms must be filed (e.g., do not use a 2009 form to file
number is printed in the upper-right corner of the following   your 2010 return).
Michigan forms to help you assemble them in the correct        • Schedules received alone. The following forms must
order behind your MI-1040:                                     be submitted with a completed MI-1040:
•	 Additions and Subtractions and Nonrefundable Credits            ○ Withholding Tax (Schedule W)
(Schedule 1/Schedule 2)                                            ○ Nonresident and Part-Year Resident (Schedule NR)
•	 Nonresident and Part-Year Resident (Schedule NR)                ○ College Tuition and Fees Credit (Schedule CT)
•	 Farmland Preservation Tax Credit (MI-1040CR-5)                  ○ Additions and Subtractions (Schedule 1)
•	 Schedule of Taxes and Allocation to Each Agreement              ○ Nonrefundable Credits (Schedule 2)
(Schedule CR-5)                                                    ○ Historic Preservation Credit (3581)
•	 Property Tax Credit (MI-1040CR or MI-1040CR-2)              • Missing, incomplete, or applied for SSN. If you don’t
•	 College Tuition and Fees Credit (Schedule CT)               have an SSN or an Individual Taxpayer Identification
• Federal Schedules (see Table 4, page 47)                     Number (ITIN), apply for one through the IRS. Do not file
•	 Schedule of Apportionment (MI-1040H)                        your Michigan return until you have received your SSN or
•	 Qualified Adoption Expenses ( MI-8839)                      ITIN.



                                                                                                                       5
                                               Special Situations
Extensions                                a fiscal year filer, the due dates are     failing to file estimate payments or
                                          the same as your federal estimated         10 percent (with a minimum of $10)
To request more time to file your         payment due dates.                         for failing to pay enough with your
Michigan tax return, send a payment                                                  estimates or paying estimates late.
of your estimated tax to Treasury         If you filed estimates for 2010,
                                          Treasury will send you personalized        Interest is 1 percent above the prime
with a copy of your approved federal                                                 rate and is computed monthly. The
extension (U.S. Form 4868) on or          forms for 2011, unless you used a
                                          tax preparer (see page 4). Otherwise,      rate is adjusted on July 1 and January 1.
before the original due date of your
return. Treasury will extend the due      request Michigan Estimated Income          Residency
date to your new federal due date. If     Tax Voucher (MI-1040ES).
                                                                                     Resident. You are a Michigan resident
you do not have a federal extension,      Exceptions. If you expect to owe           if Michigan is your permanent home.
file an Application for Extension of      more than $500, you may not have           Your permanent home is the place
Time to File Michigan Tax Returns         to make estimated payments if you          you intend to return to whenever you
(Form 4) with your payment. Treasury      expect your 2011 withholding to be at      go away. A temporary absence from
will not notify you of approval. Do       least:                                     Michigan, such as spending the winter
not file an extension if you will be                                                 in a southern state, does not make you
                                          • 90 percent of your total 2011 tax, or
claiming a refund.                                                                   a part-year resident.
                                          • 100 percent of your total 2010 tax.
An extension of time to file is NOT                                                  Income earned by a Michigan
                                          Total 2010 tax is the amount on
an extension of time to pay. If you do                                               resident in a nonreciprocal state
                                          your 2010 MI-1040, line 19, less the
not pay enough with your extension                                                   (see “Reciprocal States” on page 7)
                                          amount on lines 24, 25, 26, 27, 28b,
request, you must pay interest on the                                                or Canadian province is taxed by
                                          29, and 30.
unpaid amount. Compute interest                                                      Michigan, and may also be taxed by
from the original due date of the         Note: 2011 estimates for taxpayers         the other jurisdiction. If you pay tax
return. Interest is 1 percent above the   with 2010 AGI of $150,000 or more          to both, you can claim a credit on your
prime rate and is adjusted on July 1      for joint or single filers ($75,000 or     Michigan return. See instructions for
and January 1.                            more for married filing separate) must     Schedule 2, line 5, and the example
                                          equal 90 percent of the current year’s     on page 16.
You may be charged a penalty of 10
                                          liability or 110 percent of the previous
percent or more if the balance due is                                                Part-year resident. You are a part-
                                          year’s liability.
not paid with your extension request.                                                year resident if, during the year, you
                                          Farmers, fishermen, or seafarers           move your permanent home into
When you file your MI-1040, include
                                          may have to pay estimates, but have        or out of Michigan. You must pay
on line 32 the amount of tax you paid
                                          different filing options. If at least      Michigan income tax on income you
with your extension request. Attach a
                                          two-thirds of your gross income is         earned, received, or accrued while
copy of your federal or State extension
                                          from farming, fishing, or seafaring,       living in Michigan.
to your return.
                                          you may:
2011 Estimated Payments                                                              Use Michigan Nonresident and
                                          • Delay paying your first 2011             Part-year       Resident      Schedule
Usually, you must make estimated          quarterly       installment      (with     (Schedule NR) and the following
income tax payments if you expect         MI-1040ES) until as late as                guidelines to help you figure your
to owe more than $500 when you            January 17, 2012, and pay the entire       tax:
file your 2011 MI-1040. This is after     amount of your 2011 estimated tax          • Allocate your income from the date
crediting the property tax, farmland,     due, or                                    you moved into or out of Michigan.
any other refundable or nonrefundable     • File your 2011 MI-1040 return and        • Bonus pay, severance pay, deferred
credits, and amounts you paid through     pay the entire amount of tax due on or     income, and any other amount
withholding.                              before March 1, 2012.                      accrued while a Michigan resident are
Common income sources which make          You are considered a farmer                subject to Michigan tax no matter
estimated payments necessary are          or fisherman if you file U.S.              where you lived when you received it.
self-employment income, salary and        Schedule F or Schedule C. Wages            • Deferred compensation reported to
wages if you do not have enough tax       earned as a farm employee or from          you on U.S. Form 1099-R and
withheld, tips, lump sum payments,        a corporate farm do not qualify you        dividend and interest income are
unemployment benefits, dividend and       for this exception. You are considered     allocated to the state of residence
interest income, income from the sale     a seafarer if your wages are exempt        when received.
of property (capital gains), and rental   from income tax withholding under          • Part-year residents who lived in
income.                                   Title 46, Shipping, USC, Sec. 11108.       Michigan at least six months of the
You may ask your employer to              Failure to make payments or                tax year may qualify for a homestead
increase your withholding to cover        underpayment of estimates. If you fail     property tax credit (see page 19).
the taxes on other types of income.       to make required estimated payments,       Note: Out-of-state students who live
Estimated payments are due April 18,      pay late, or underpay in any quarter,      in Michigan while they are attending
2011; June 15, 2011; September 15,        Treasury may charge penalty and            school are not considered Michigan
2011; and January 17, 2012. If you are    interest. Penalty is 25 percent of the     residents or part-year residents and
                                          tax due (with a minimum of $25) for        should file as nonresidents.
6
Nonresident. Use Schedule NR to            due a refund. A full-year exemption      If a change on your federal return
figure your Michigan taxable income.       is allowed for a deceased taxpayer on    affects Michigan taxable income, you
You must pay Michigan income tax           the 2010 MI-1040.                        must file MI-1040X within 120 days
on the following types of income:                                                   of the change. Include payment of any
                                           Use the deceased’s Social Security
                                                                                    tax and interest due.
• Salary, wages, and other employee        number and your address. If the
compensation for work performed in         taxpayer died after December 31,         To amend only a homestead property
Michigan, unless you live in a state       2009, check the appropriate box(es) in   tax or home heating tax credit, file a
covered by a reciprocal agreement          the “Deceased Taxpayers” section on      revised claim form clearly marked
(see “Reciprocal States” below)            the bottom of page 2 on MI-1040.         “Amended.” Do not file MI-1040X.
• Net rents and royalties from real        The surviving spouse may file a joint    Net Operating Losses (NOL)
and tangible personal property in          return for 2010. Write your name
Michigan                                                                            If you have a federal NOL deduction,
                                           and the deceased’s name and both         you must add back the federal
• Capital gains from the sale or           Social Security numbers on MI-1040.      deduction      on    your     Michigan
exchange of real property located in
                                           Write “DECD” after the deceased’s        Schedule 1, line 6, to the extent
Michigan, or of tangible personal
                                           last name. You must report the           included in federal AGI. A subtraction
property located in Michigan
                                           deceased’s income. Sign the return.      for a Michigan NOL deduction may
• Patent or copyright royalties if the
                                           In the deceased’s signature block,       be claimed on Schedule 1, line 20, and
patent or copyright is used in
                                           write “Filing as surviving spouse.” If   is calculated on page 1 of Application
Michigan or if you have a commercial
                                           the taxpayer died after December 31,     for Michigan Net Operating Loss
domicile in Michigan
                                           2009, check the appropriate box(es) on   Refund (MI-1045). Compute your
• Income (including dividend and
                                           page 2 of the MI-1040. See “Deceased     Michigan NOL and Michigan NOL
interest income) from an S
                                           Taxpayer Chart of Examples” on page      deduction by completing the MI-1045.
corporation, partnership or an
                                           47, example A.                           File MI-1045 to claim a refund for a
unincorporated business, or other
business activity in Michigan              If filing as a personal representative   carryback deduction. Returns for
• Lottery winnings                         or claimant and you are claiming a       tax years affected by carryforward
• Prizes won from casinos or               refund for a single deceased taxpayer,   deductions must have MI-1045
licensed horse tracks located in           you must attach a U.S. Form 1310 or      attached to substantiate the deduction.
Michigan.       Nonresidents     from      Michigan Claim for Refund Due a          Repayments of Income
reciprocal states must also declare        Deceased Taxpayer (MI-1310). Enter       Reported in a Prior Year
these prizes as taxable.                   the deceased’s name in the Filer’s       If you had to repay an amount of
                                           Name fields and the representative’s     money in 2010 which you claimed
Reciprocal States
                                           or claimant’s name in the Spouse’s       as income in a previous year (e.g.,
Illinois,     Indiana,    Kentucky,        Name fields. See “Deceased Taxpayer      unemployment benefits), you may be
Minnesota, Ohio, and Wisconsin             Chart of Examples” on page 47,           entitled to a credit on your 2010 return
have reciprocal agreements with            example B or C.                          for the tax paid in an earlier year.
Michigan. Michigan residents pay
                                           If filing as a personal representative   If you subtracted the repayment
only Michigan income tax on their
                                           or claimant of a deceased taxpayer(s)    in arriving at AGI, no additional
salaries and wages earned in any of
these states. A Michigan resident          for a jointly filed return, you must     credit is allowed on the Michigan
can file a withholding form with           attach a U.S. Form 1310 or Michigan      return because your income for
an employer in a reciprocal state to       Claim for a Refund Due a Deceased        the year has been reduced by the
claim exemption from that state’s          Taxpayer (MI-1310). Enter the names      repayment amount. If the amount of
income tax withholding. The out-of-        of the deceased persons in the Filer’s   the repayment was deducted on U.S.
state income might make Michigan           and Spouse’s Name fields and the         Schedule A or a credit was claimed on
income tax estimate payments               representative’s or claimant’s name,     U.S. Form 1040, line 71, a credit will
necessary. Residents of reciprocal         title, and address in the Home Address   be allowed on the Michigan return.
states working in Michigan do not          field. See “Deceased Taxpayer Chart      To compute your Michigan credit,
have to pay Michigan tax on salaries       of Examples” on page 47, example D       multiply the amount you repaid in
or wages earned in Michigan but do         or E.                                    2010 by the tax rate which was in
have to pay Michigan tax on business       For information about filing a credit    effect the year you paid the tax. Then
income earned from business                claim, see “Deceased Claimant’s          add the amount of the credit to the
activity in Michigan. A resident of a      Credit” on page 19.                      Michigan tax withheld on MI-1040,
reciprocal state who claims a refund                                                line 31. Write “Claim of Right/
of Michigan withholding tax must file      Amended Returns                          Repayment” next to line 31.
a Schedule NR along with MI-1040.          If you need to make a correction         Attach a schedule showing the
                                           to your return, file an Amended          computation of the credit, proof of
Deceased Taxpayers                         Michigan Individual Income Tax           the repayment, and pages 1 and 2 of
A personal representative for the          Return (MI-1040X). If you are due a      your U.S. Form 1040 and Schedule A
estate of a taxpayer who died in 2010      refund on your amended return, you       if applicable.
(or 2011 before filing a 2010 return)      must file it within four years of the
must file if the taxpayer owes tax or is   due date of the original return.
                                                                                                                          7
                     Summary of Income Tax Credits, Additions, and Subtractions
Below is a summary of income tax credits, additions, and subtractions available to taxpayers. Detailed information for each
is provided on the page number indicated below.

CREDITS                                                                                           SUBTRACTIONS
The following refundable credits may be claimed on your MI-1040.                                  The following subtractions are claimed on your Michigan
The line reference follows the credit listed below.                                               Schedule 1; total subtractions are carried forward to the MI-1040,
MI-1040 - Refundable Credits                                                  Page No.            line 13. The Schedule 1 line reference follows the subtraction
                                                                                                  listed below.
Homestead Property Tax Credit (24) ......................................... 17
                                                                                                                                                                                        Page No.
Farmland Preservation Tax Credit (25) ..................................... 18
                                                                                                  Income from U.S. government obligations
Qualified Adoption expenses (26).............................................. 11
                                                                                                  (Series EE Bonds, Treasury notes, etc.) (8) .............................. 12
Stillbirth Credit (27)................................................................... 11
                                                                                                  Compensation received for active duty in
Earned Income Tax Credit (28) .................................................. 11               U.S. Armed Forces (9) ............................................................ 12
Energy Efficient Qualified Home Improvement Credit (29) ..... 11                                  Gains from federal column of Michigan
Historic Preservation Tax Credit (30) ........................................ 11                 MI-1040D (15) and MI-4797 (10) ........................................... 12
The following nonrefundable credits may be claimed on your                                        Income attributable to another state (11) ................................. 12
Schedule 2. The line reference follows the credit listed below.                                   Qualifying retirement and pension benefits (12) ..................... 13
Schedule 2 - Nonrefundable Credits                                                                Dividends, interest, and capital gains for senior citizens (13) .. 13
City Income Tax Credit (1) ........................................................ 15            Taxable Social Security and Tier 1 railroad benefits (14) ...... 13
Public Contribution Credit (2) ................................................... 15             Renaissance zone deduction (15) ............................................. 13
Community Foundations Credit (3) ........................................... 15                   Michigan state and city income tax refunds and
Homeless Shelter/Food Bank Credit (4) .................................... 15                     homestead property tax credit refunds (16) ............................. 14
Taxes paid to government units outside Michigan (5) ............... 16                            Contributions made to accounts established through MESP
                                                                                                  (17) ............................................................................................. 14
Historic Preservation Tax Credit (6) .......................................... 16
                                                                                                  Contract price for a MET contract (18) .................................. 14
College Tuition and Fees Credit (7) ......................................... 16
                                                                                                  Charitable contributions to MET programs (18) ..................... 14
Vehicle Donation Credit (8) ..................................................... 16
                                                                                                  Venture Capital Deduction (19) ................................................ 14
Individual or Family Development Account Credit (9) ........... 16
                                                                                                  Contributions to national or Michigan political parties
Renewable Energy Surcharge Credit (10) ............................... 16                         or candidates (20) ...................................................................... 14
The following credit is claimed on the MI-1040CR-7 Home                                           Benefits from a discriminatory self-insured medical
Heating Credit Claim form.                                                                        expense reimbursement plan (20)............................................. 14
Home Heating Credit ....... See MI-1040CR-7 Instruction Booklet                                   Proceeds and prizes won in a Michigan
                                                                                                  regulated bingo, raffle, or charity games (20) ......................... 14
ADDITIONS                                                                                         Deduction for claiming a work opportunity credit, clinical
                                                                                                  testing (orphan drug) credit, or research credit (20) ............... 14
The following additions are claimed on your Michigan Schedule 1;
                                                                                                  Losses from disposal of property (20) ................................... 14
total additions are carried forward to the MI-1040, line 11. The
Schedule 1 line reference follows the addition listed below.                                      Amount used to determine the credit for elderly
                                                                                                  or totally and permanently disabled (20) .............................. 14
                                                                                   Page No.       Michigan NOL deduction (20) ................................................ 14
Gross interest, dividends, and income from obligations or                                         Gross income included in AGI from Michigan gas and
securities of states and their political subdivisions other                                       oil royalty interest or working interest (20) ............................ 14
than Michigan (1)..................................................................... 12
                                                                                                  Distributions from individual retirement accounts used
Deduction taken on your federal return for self-employment                                        to pay qualified higher education expenses (20) ..................... 14
tax or other taxes on or measured by income (2) ................. 12
                                                                                                  Holocaust victim payments (20)............................................... 14
Capital gains from the Michigan column of the MI-1040D
or MI-4797 (3) ......................................................................... 12       Distribution from a pension or retirement plan that is
                                                                                                  contributed to a qualifying charitable organization (20)......... 14
Certain losses from a business or property located
in another state (4) ................................................................... 12
Net loss from the federal column of your Michigan
MI-1040D, line 15, or MI-4797, line 18b(1) (5) ................... 12
Money withdrawn in the tax year from a Michigan Education
Savings Program (MESP) account if the withdrawal was not a
qualified withdrawal as provided in the MESP Act (6) ........ 12
Net operating loss deduction used to reduce AGI (6) ........... 12
Refund received from a Michigan Education Trust (MET)
contract (6) ............................................................................... 12

8
                                                               Use Tax
Every state that has a sales tax has            Line 1 should contain a number                          TABLE 1 - USE TAX
a companion tax for purchases                   unless you made no purchases under
made outside that state by catalog,             $1,000 subject to the use tax. If we          AGI*                                         Tax
telephone, or Internet. In Michigan,            later determine that you owe use tax,         $0 - $10,000 .................................$4
that companion tax is called the “use           you may be subject to penalty and             $10,001 - $20,000 ......................$12
tax,” but might be described more               interest.                                     $20,001 - $30,000 ......................$20
accurately as a remote sales tax                Line 2: In all cases, if a single             $30,001 - $40,000 ......................$28
because it is a 6 percent tax owed on           purchase is $1,000 or more, you               $40,001 - $50,000 ......................$36
purchases made outside of Michigan.             must pay 6 percent use tax on those           $50,001 - $75,000 ......................$50
Use tax is due on catalog, telephone,           purchases.
                                                                                              $75,001 - $100,000 ....................$70
or Internet purchases made from                 Example: Kurt ordered a computer              Above $100,000 ....Multiply AGI by
out-of-state sellers as well as                 from a catalog retailer in New York                                    0.08% (0.0008)
purchases while traveling in foreign            for $1,437.50. Kurt also purchased
                                                items over the Internet for less than         * AGI from MI-1040, line 10.
countries when the items are to be
brought into Michigan. Use tax must             $1,000 during the year, but lost his
be paid on the total price (including           receipts. He is sure he did not pay
                                                Michigan sales tax. Kurt’s AGI                Use Tax on the Difference
shipping and handling charges).
                                                is $46,500. Kurt would complete               If you paid at least 6 percent to
How to Pay Use Tax                              Worksheet 1 as follows:                       another state on your purchase, you
Use Worksheet 1 below to calculate              Line 1: Kurt selects $36 from                 do not owe use tax to Michigan. If
your tax and enter the amount of tax            the table based on his AGI .......... $36     you paid less than 6 percent, you owe
due on MI-1040, line 22.                                                                      the difference.
                                                Line 2: Kurt enters
Worksheet Calculation                           $1,437.50 x 6 percent .............. $86.25   Note: The full 6 percent use tax is
                                                                                              owed on purchases made in a foreign
Line 1: For purchases of $0-$1,000,             Line 3: Total use tax due .... $122.25
                                                                                              country.
multiply your total purchases times 6           Kurt would enter $122 (no cents) on
percent (0.06) and enter the amount on          his 2010 MI-1040, line 22.                         For more information, visit
Line 1, or                                                                                          www.michigan.gov/taxes.
                                                Estimating your taxes does not
If you have incomplete or inaccurate            preclude Treasury from auditing
receipts to calculate your purchases,           your account. If additional tax is
you may use Table 1 - Use Tax                   due, you may receive an assessment
to estimate your taxes. (See the                for the amount of the tax owed, plus
following example.)                             applicable penalty and interest.


                       WORKSHEET 1 - USE TAX
  Line 1: Itemized purchases of $0 to $1,000 x
  6 percent (0.06) OR Use Tax table amount .............................   $ _______
  Line 2: Single purchases $1,000 or more x 6 percent (0.06) ...           $ _______
  Line 3: Total Use Tax Due (add Lines 1 and 2).......................     $ _______
  Enter amount from Line 3 above on your 2010 MI-1040, line 22. If the
  amount on Line 3 is 0, enter “0” on your 2010 MI-1040, line 22.




                                                                                                                                                 9
                                    Line-by-Line Instructions for MI-1040
Lines not listed are explained on the form.   Multiply the number of exemptions by             active military, naval, marine, coast
Line 1: Only married filers may               your exemption allowance of $3,600               guard, or air service who received an
file joint returns. Include name and          and enter that amount in the box.                honorable or general discharge and
address.                                      Exemptions. Complete the lines                   has a disability incurred or aggravated
                                              that apply to you, your spouse, or               in the line of duty as described in
Lines 2 and 3: Write your SSN(s).                                                              38 USC 101(16). This additional
                                              dependents as of December 31, 2010.
Line 5: State Campaign Fund.                  If your dependent files an annual                exemption may not be claimed on
These funds are disbursed only to             return, you and your dependent may               more than one tax return.
candidates for governor, regardless           not both claim the special exemption.            f) Unemployment       compensation.
of political party, who agree to              b) Age 65 or older. You are considered           Check this box if 50 percent or more
limit campaign spending and meet              age 65 the day before your 65th                  of your AGI (MI-1040, line 10) is
the campaign fund requirements.               birthday. If you claim this exemption,           from unemployment compensation. If
Choosing “Yes” will not raise your                                                             you checked the box, enter $2,300 in
                                              you may not claim an exemption as
tax or reduce your refund.                                                                     the space provided.
                                              totally and permanently disabled.
Line 6: Only farmers, fishermen,              c) Deaf, Blind, or Disabled. You                 g) If someone else can claim you as
and seafarers should check this box.          qualify for this exemption if                    a dependent, check the box, complete
(For estimate filing information, see         you are deaf, blind, hemiplegic,                 Worksheet 2 below, and enter the
page 6.)                                      paraplegic, quadriplegic, or totally             amount from the worksheet in the
Line 7: Filing Status. Check the box          and permanently disabled.          Deaf          space provided on line 9g.
to identify your filing status. If you        means the primary way you receive
                                                                                               Line 10: Adjusted Gross Income.
file a joint federal return, you must         messages is through a sense other
                                                                                               Enter your AGI from your federal
file a joint Michigan return and you          than hearing (e.g., lip reading or sign
                                                                                               return. This is the amount from your
cannot be claimed as a dependent on           language). Blind means your better
another person’s tax return. Married                                                           U.S. Form 1040, line 37, U.S. Form
                                              eye permanently has 20/200 vision
couples who file separate federal                                                              1040A, line 21, or U.S. Form 1040EZ,
                                              or less with corrective lenses, or your
returns may file a separate or joint          peripheral field of vision is 20 degrees         line 4. You must attach copies of
Michigan return. If you are claiming          or less. Totally and permanently                 federal schedules that apply to you
a homestead property tax credit or            disabled means disabled as defined               (see Table 4 on page 47). For Michigan
other tax credits, it may be easier to        under Social Security Guidelines 42              adjustments to AGI, see Schedule 1,
file a joint Michigan return because          USC 416. If you are age 65 or older,             page 31. Instructions for completing
total (joint) household income is the         you may not claim an exemption as                Schedule 1 begin on page 12.
basis for computing these credits. If         totally and permanently disabled. You            Line 17: Tax. Multiply the amount
your status is married filing separately      may claim only one exemption per                 on line 16 by 4.35 percent (0.0435).
(box c), write your spouse’s full name        person in this category.
in the space provided and be sure to                                                           Line 18: Nonrefundable          Credits.
                                              d) Child 18 and Under. Enter $600                Enter the total amount of nonrefundable
write his or her SSN on line 3. If you
                                              for each child 18 and under as of                credits from Schedule 2, line 11.
filed your federal return as head of
                                              December 31, 2010, whom you claim
household or qualifying widow(er),                                                             Line 19: Income Tax. Carry this
you must file the Michigan return as          as a dependent.
                                                                                               amount to line 20.
single.                                       e) Qualified Disabled Veterans. A
                                              taxpayer may claim an exemption                  Line 21: Voluntary Contributions.
Line 8: Residency. Check the box              of $300 in addition to the taxpayer’s            Contribution amounts can be made
that describes your Michigan residency                                                         on Voluntary Contribution Schedule.
                                              other exemptions if (a) the taxpayer or
for 2010. If you and your spouse had a                                                         (Form 4642). Attach Form 4642
                                              spouse is a qualified disabled veteran,
different residency status during the
                                              or (b) a dependent of the taxpayer is            to ensure your contributions are
year, check a box for each of you. Both
                                              a qualified disabled veteran. To be              applied to the fund(s) of your choice.
part-year residents and nonresidents
                                              eligible for the additional exemption            Contributions will increase your tax
must file Nonresident and Part-Year
Resident Schedule (Schedule NR).              an individual must be a veteran of the           due or reduce your refund.
(For definition of residency, see page
6.)                                                                 WORKSHEET 2 - FILER ELIGIBLE
                                                                   TO BE CLAIMED AS A DEPENDENT
Line 9: Exemptions. Use this line
                                               Is your AGI (from your federal return) over $1,500 if single or married filing separately?
to compute your Michigan exemption
amount plus your Michigan special              YES. If single or married filing separately, enter “0” on line 9a and $1,500 on line 9g.
exemptions.                                    Do not continue the rest of this worksheet.
                                               OR
a) Enter the number of exemptions              NO. Then was Michigan income tax withheld from your wages?
you claimed on your U.S. Form 1040             Continue with the following two questions.
or 1040A, line 6d. These exemptions                  • If YES, enter “0” on lines 9h and 19, and complete line 10 and lines 21 through 37.
are for you, your spouse (if filing                    OR
jointly), and your dependents.                      • If NO, you do not need to file this return.
10
Line 22: Use Tax. Enter use tax due                                 WORKSHEET 3 - STILLBIRTH CREDIT
from Worksheet 1, line 3, on page 9.
                                             A. Enter number of Certificates of Stillbirth for 2010 (see line 27
Line 24: Property tax credit infor-             instructions below for qualifications) ................................................   ___________
mation begins on page 17.                    B. Multiply line A by $170. Enter here and carry to MI-1040, line 27 .                       ___________
Line 25: Farmland preservation credit
applies to farmers only. See page 18.
                                           Line 32: Enter the total estimated                           Direct Deposit
Line 26: Qualified           Adoption      tax paid with your 2010 MI-1040ES,
Expenses. Enter the amount from            the amount paid with a Form 4, and                           First check with your financial
your Michigan Qualified Adoption           the amount of your 2009 overpayment                          institution to (1) make sure it will
Expenses (MI-8839), line 10. Attach        applied to this year’s tax (2009                             accept Direct Deposit, (2) obtain
a completed U.S. Form 8839 and a           MI-1040, line 39).                                           the correct Routing Transit Number
completed MI-8839.                                                                                      (RTN) and account number, and (3) if
                                           Line 34: You Owe. If line 33 is less                         applicable, verify that your financial
Line 27: Stillbirth Credit. If you         than line 23, enter the difference. This
are the mother of a stillborn delivered                                                                 institution will allow a joint refund
                                           is the tax you owe with your return.                         to be deposited into an individual
during 2010 and have been issued
a Certificate of Stillbirth from the       You will owe penalty and interest for                        account.
Michigan Department of Community           late payment of tax if you pay after
                                                                                                        Direct Deposit requests associated
Health, attach a copy of the certificate   the due date. Penalty accrues monthly
                                                                                                        with a foreign bank account are
to MI-1040 and complete Worksheet 3        at 5 percent of the tax due, and
                                                                                                        classified as International ACH
above.                                     increases by an additional 5 percent
                                                                                                        Transactions (IAT). If your income
                                           per month, or fraction thereof, after
If you do not have a certificate,                                                                       tax refund Direct Deposit is forwarded
                                           the second month, up to a maximum
contact the Michigan Department of                                                                      or transferred to a bank account in a
                                           of 25 percent of the tax due (e.g.,
Community Health at (517) 335-8666                                                                      foreign country your Direct Deposit
                                           penalty on a $500 tax due will be $125
for an application or information on                                                                    will be returned to Treasury. If this
                                           if the tax is unpaid for six months).
obtaining the certificate. You should                                                                   occurs, your refund will be converted
                                           See “Penalty and Interest Added for
not file for the credit until you have                                                                  to a check (warrant) and mailed to the
                                           Filing and Paying Late” on page 4.                           address on your tax return. Contact
the certificate. You can amend your
                                           Add penalty and interest to your tax                         your financial institution for questions
2010 return at a later date should you
                                           due and enter the total on line 34.                          regarding the status of your account.
get the certificate after you file the
                                           Generally, if you owe more than $500,
original return.                                                                                        a. RTN. Enter the nine-digit RTN.
                                           you are required to make estimated
Line 28: Michigan Earned Income            payments. See special note below and                         The RTN is usually found between the
Tax Credit (EITC). Taxpayers               information about estimated payments                         symbols |: and |: on the bottom of your
who are eligible to claim an EITC          on page 6. If the balance due is less                        check. The first two digits must be “01”
on their federal return may claim a        than $1, no payment is required, but                         through “12” or “21” through “32”.
Michigan EITC equal to 20 percent          you must still file your return. See                         b. Type of Account. Check the box
of the taxpayer’s federal credit. To       “Pay” address on page 2 of your                              for checking or savings.
claim the Michigan credit, enter your      MI-1040.
federal EITC amount on line 28a and                                                                     c. Account Number. Enter your bank
20 percent of line 28a on line 28b.        Special note for people required to                          account number up to 17 characters
                                           file estimates. You may owe penalty                          (both numbers and letters).      The
Line 29: Energy Efficient Qualified        and interest for underpayment, late                          account number is usually found
Home Improvement Credit. Enter the         payment, or for failing to make                              immediately to the right of the RTN
amount from your completed Energy          estimated tax payments. Use the                              on the bottom of your check. Include
Efficient Qualified Home Improvement       Underpayment of Estimated Income                             hyphens but omit spaces and special
Credit (Form 4764), line 7. Attach         Tax (MI-2210) to compute penalty and                         symbols. Enter the number from left
completed Form 4764 to MI-1040.            interest. If you do not file an MI-2210,                     to right. Do not include the check
Line 30: Michigan              Historic    Treasury will compute your penalty                           number.
Preservation Tax Credit.          Enter    and interest and send you a bill. If
the amount from your 2010 Historic         you annualize your income, you must                          When You Are Finished
Preservation Tax Credit (Form 3581),       complete and attach MI-2210. Enter                           Sign Your Return. Each spouse
line 16a or 16b, whichever applies.        the penalty and interest amounts on                          must sign a joint return. If the tax
Attach a completed Form 3581 and           the lines provided.                                          preparer is someone other than the
U.S. Form 3581, if applicable.             Line 37: Refund. This includes                               taxpayer, he or she must include the
Line 31: Enter the total Michigan          any tax you overpaid and any credits                         name and address of the firm he or
tax withheld (from your Schedule           due you. The State does not refund                           she represents and tax preparer tax
W). If applicable, include any credit      amounts less than $1. Mail your                              identification or federal employer
for repayments under the “Claim of         return to the “Refund, credit, or                            identification number. Check the box
Right.” See “Repayments of Income          zero returns” address on page 2 of                           to indicate if Treasury may discuss
Reported in a Prior Year” on page 7.       MI-1040.                                                     your return with your preparer.
                                                                                                                                                        11
Signing a child’s return. If a return       If you owe tax. Make check payable        The filing deadline to receive
is prepared for a child who is too          to “State of Michigan” and print          a refund for tax year 2010 is
young to sign it, a parent or guardian      your Social Security number and           April 20, 2015.
should sign the child’s name, then add      “2010 income tax” on the front of
“by (your name) parent (or guardian)        your check. Enclose your payment
for minor child.”                           but do not staple it to the return.
Attachments. Attach all your credit         Checks stapled to the back of the
claims and required Michigan and            return may not be seen and may result
federal schedules (see Table 4 on page      in improper processing.
47).



                                Line-by-Line Instructions for Schedule 1
Part-year and nonresidents, complete        Line 4: Enter losses from a business      Subtractions From Income
Schedule NR (see page 39) before            or property located in another state
proceeding.                                 which you own as a sole proprietor, a     Note: Part-year and nonresidents,
                                            partner in a partnership, a shareholder   subtract only income attributable to
Additions to Income                                                                   Michigan (Schedule NR, column B)
                                            in an S corporation, or as a member of
Line 1: Enter        gross      interest,   a pass-through entity. If your business   that is not included on line 11.
dividends,       and   income      from     is taxed by both Michigan and another     Line 8: Enter income from U.S.
obligations or securities of states and     state, the loss must be apportioned.      government obligation (e.g., Series EE
their political subdivisions other than     You must attach a Michigan Schedule       bonds, Treasury notes, etc.), including
Michigan. Add this income even if it        of Apportionment (MI-1040H).              income from U.S. government
comes to you through a partnership,                                                   obligations received through a
S corporation, estate, or trust. You        Line 5: Enter the net loss from the
                                            federal column of your MI-1040D,          partnership, S corporation, or other
may reduce this income by related                                                     pass-through entity. This subtraction
expenses not allowed as a deduction         line 15, or MI-4797, line 18b(1) as a
                                                                                      must be reduced by related expenses
by Section 265(a)(1) of the Internal        positive number.
                                                                                      used to arrive at AGI.
Revenue Code (IRC).                         Line 6: Enter the total of the
                                                                                      Investment companies that invest
Line 2: Enter the deduction taken           following (attach a schedule if
                                                                                      in U.S. obligations are permitted to
for self-employment tax on your             necessary):
                                                                                      pass the tax-free exemption to their
federal return and for other taxes          • Add, to the extent not included in      shareholders.
on or measured by income, such as           AGI, the amount of money withdrawn
your share of city income tax paid                                                    If income from U.S. government
                                            in the tax year from a Michigan           obligations exceeds $5,000, attach
by partnerships or S corporations,          Education Savings Program (MESP)
or your share of the taxes paid by an                                                 a copy of your U.S. Schedule B
                                            account, including the MI 529 Advisor     or Schedule 1 listing the amounts
estate or trust.
                                            Plan (MAP), if the withdrawal was         received and the issuing agency.
Line 3: Use Michigan Adjustments of         not a qualified withdrawal as provided
Capital Gains and Losses (MI-1040D)         in the MESP Act. You may first            Capital gains from the sale of U.S.
only if you have capital gains or           exclude any amount that represents a      government obligations must be
losses attributable to: (1) an election     return of contributions for which no      adjusted on MI-1040D.
to use Section 271 treatment for            deduction was claimed in any prior        Line 9: Enter compensation received
property acquired before October 1,         tax year.                                 for active duty in the U.S. Armed
1967; (2) the sale or exchange of U.S.      • Amount of NOL deduction (NOL            Forces included in AGI. Include
obligations which cannot be taxed by        carryforward) used to reduce AGI          military retirement on line 12.
Michigan; or (3) the sale or exchange       (see page 7).
of property located in other states.                                                  Note: Compensation       from the
                                            • Refund received from a Michigan         U.S. Public Health Service is not
If you reported gains on U.S. Form          Education Trust (MET) contract. If        considered military pay.
4797 on property acquired before            you deducted the cost of a MET
October 1, 1967, or located in other                                                  Line 10: Enter the gains from the
                                            contract in previous years and            federal column of your MI-1040D,
states, adjust the gain on the Michigan     received a refund from MET during
Adjustments of Gains and Losses                                                       line 14, and MI-4797, line 18b(2). See
                                            2010 because the MET contract was         instructions for Michigan Schedule 1,
From Sales of Business Property             terminated, then enter the smaller of:
(MI-4797).                                                                            line 3.
                                            (1) the refund you received or (2) the
Enter gains from the Michigan               amount of the original MET contract       Line 11: Income Attributable to
column of MI-1040D, line 14, and            price (including the application and      Another State. Nonresidents and part-
MI-4797, line 18b(2). Instructions are      processing fees) which you deducted       year residents, complete Schedule NR.
with each form.                                                                       See instructions on page 40. Attach
                                            in previous years.
                                                                                      federal schedules.
12
Business income that is taxed by           • Benefits paid to a senior citizen         and Retirees” on Treasury’s Web site
Michigan and another state must be         (age 65 or older) from a retirement         at www.michigan.gov/incometax.
apportioned. You must complete and         annuity policy that are paid for life (as   For public and private pension or
attach MI-1040H.                           opposed to a specified number of            retirement benefits, you may not
Capital gains from the sale of real        years).                                     subtract:
property or tangible personal property     You may subtract all qualifying             • Amounts received from a deferred
located outside of Michigan must be        retirement and pension benefits             compensation plan that lets the
adjusted on MI-1040D.                      included in AGI and received from           employee set the amount to be put
Michigan residents cannot subtract         the following public sources:               aside and does not set retirement age
salaries and wages or other                • The State of Michigan                     or requirements for years of service.
compensation        earned       outside   • Michigan local governmental units         These plans include, but are not
Michigan. However, they may be             (e.g., Michigan counties, cities, and       limited to, plans under Sections
entitled to a tax credit for income tax    school districts)                           401(k), 457, and 403(b) of the IRC.
imposed by government units outside        • Tier 2 railroad retirement                • Amounts received before the
Michigan (see page 16).                    • Federal civil service                     recipient could retire under the plan
                                           • Military retirement from the U.S.         provisions, including amounts paid on
Residents may subtract:                                                                separation,       withdrawal,       or
• Net business income earned in            Armed Forces.
                                                                                       discontinuance of the plan.
other states and included in AGI, and      If all qualifying retirement and            • Amounts received as early retirement
• Net rents and royalties from real        pension benefits were received from         incentives, unless the incentives were
property or tangible personal property     public sources, enter the total of all      paid from a pension trust.
located or used in another state.          benefits on line 12. If all qualifying
                                           retirement and pension benefits             Line 13: Senior citizens (age 65
Line 12: Qualifying retirement and         were received from private sources,         or older) may subtract interest,
pension benefits included in your AGI      enter the smaller of:                       dividends, and capital gains included
may be subtracted from income. The                                                     in AGI. This subtraction is limited
amount you may subtract depends on         • The total of all qualifying private       to a maximum of $10,058 on a single
the source of the benefit (public or       pensions included in AGI, or                return or $20,115 on a joint return.
private).                                  • $45,120 if you are a single filer,        However, the maximum must be
                                           $90,240 if you are married and filing       reduced by the retirement pension
Note:     Pension/Interest/Dividends/      jointly.
Capital Gain Estimator. Certain                                                        subtraction claimed on line 12. For
amounts of interest/dividends/capital      If you received a combination               help in calculating this subtraction,
gains and pension distributions are        of qualifying public and private            see “Information for Senior Citizens
subtractable from taxable income. An       retirement and pension benefits,            and Retirees” on Treasury’s Web site
online estimator is available to assist    follow these steps to compute your          at www.michigan.gov/incometax.
taxpayers in determining what amounts      deduction:                                  Line 14: Enter only the taxable
can be subtracted. Visit Treasury’s        Step 1: Add all qualifying public           portion of Social Security and Tier
Web site at www.michigan.gov/taxes         retirement benefits included in AGI.        1 railroad benefits included on your
and select Pension Estimator from the                                                  U.S. Form 1040, line 20b, or your U.S.
Quick List, Services dropdown menu.        Note: If your public retirement             Form 1040A, line 14b. Do not include
                                           benefits are greater than the               your total Social Security benefits.
Qualifying benefits include:               maximum amounts ($45,120 single
• Pension plans that define eligibility    filer or $90,240 married, filing            Line 15: Renaissance Zone deduc-
for retirement and set contribution        jointly) you are not entitled to claim a    tion. To be eligible you must meet all
and benefit amounts in advance             subtraction for private pensions.           the following requirements:
• Qualified retirement plans for the       Step 2: If you are a single filer,          • Be a permanent resident of a
self-employed                              deduct the amount in step 1 from            Renaissance Zone for at least 183
• Retirement distributions from a          $45,120. If you are married filing          consecutive days.
401(k) or 403(b) plan attributable to      jointly, deduct the amount in step 1        • Be approved by your local
employer contributions or attributable     from $90,240.                               assessor’s office.
to employee contributions to the                                                       • Must not be delinquent for any
extent they result in matching             Step 3: Add all qualifying private          State or local taxes abated by the
contributions by the employer              pensions included in AGI.                   Renaissance Zone Act.
• IRA distributions received after         Step 4: Determine which is smaller,         • Must file MI-1040 each year.
age 59½ or described by Section 72(t)      the amount computed in step 2 or the        • Have gross income of $1 million or
(2)(A)(iv) of the IRC (series of equal     amount computed in step 3.                  less.
periodic payments made for life)           Step 5: Add the amount computed             If you were a full-year resident of a
• Benefits from any of the previous        in step 1 to the amount determined in       Renaissance Zone, you may subtract
plans received due to a disability, or     step 4 and enter the total on line 12.      all income earned or received.
as a surviving spouse if the decedent                                                  Unearned income such as capital gains
qualified for the subtraction at the       For help in calculating this subtraction,
                                                                                       may have to be prorated. If you lived
time of death                              see “Information for Senior Citizens
                                                                                                                          13
in the Zone at least 183 consecutive     contributions to accounts established     • Losses from the disposal of
days during 2010, you may subtract       through MESP and MAP.                     property reported in the Michigan
the portion of income earned while       Line 18: Michigan Education Trust.        column of MI-1040D, line 15, or
a resident of the Zone. If you are a                                               MI-4797, line 18b(1).
                                         You may deduct the following:
part-year resident of a Zone, you must                                             • Amount used to determine the
complete and attach a Schedule NR to     • If you purchased a MET contract         credit for elderly or totally and
MI-1040. (See “Special Note” on the      during 2010, you may deduct the total     permanently disabled from U.S. Form
back of Schedule NR, page 40.)           contract     price   (including    the    1040A or U.S. Form 1040 Schedule R,
                                         processing fee).                          line 19.
Certain Renaissance Zones began to       • If you made a charitable
phase out in 2007. The tax exemption                                               • Michigan NOL deduction. Attach
                                         contribution to the MET Charitable
is reduced in increments of 25 percent                                             MI-1045. See page 7.
                                         Tuition Program during 2010, you
during the Zone’s final three years                                                • Gross income included in AGI
                                         may deduct the total contribution
of existence. If you are a resident                                                from Michigan gas and oil royalty
                                         amount. You will receive a statement
of a Zone that is phasing out (check                                               interest or working interest.
                                         from MET to confirm the amount. All
with your local unit of government),                                               • The amount of a distribution from
                                         charitable donations will go toward
you must reduce your deduction as                                                  individual retirement accounts that
                                         providing scholarships to foster care     qualify under IRC section 408 if the
follows:                                 students at Michigan public colleges.     distribution is used to pay qualified
• 25 percent for the tax year that is    • If you purchased a MET payroll          higher education expenses (tuition,
two years before the final year of       deduction or monthly purchase             books, fees, etc.) at a postsecondary
designation as a Renaissance Zone        contract, you may deduct the amount       educational institution.
• 50 percent for the tax year            paid on that contract during 2010 (not
immediately preceding the final year                                               • Holocaust victim payments.
                                         including fees for late payments or
of the designation as a Renaissance                                                • To the extent included in AGI, a
                                         insufficient funds). You will receive
Zone                                                                               qualifying distribution from a pension
                                         an annual statement from MET
• 75 percent for the tax year that is                                              or retirement plan that is contributed
                                         specifying this amount.
the final year of the designation as a                                             to a qualifying charitable organiza-
                                         • If you have terminated a MET            tion. To qualify, you must make the
Renaissance Zone.                        contract, you may deduct the amount       payment to the charity within 60 days
For additional information regarding     included in AGI as income to the          of receiving the distribution, and re-
qualifications for the Renaissance       purchaser.                                duce the amount of the contribution by
Zone deduction, call the Michigan        Line 19: Venture Capital Deduction.       any pension subtraction taken and two
Economic Development Corporation         No companies certified for this           times the total amount of credits
at (517) 373-9808.                       deduction in 2010. The Venture            claimed for a public contribution cred-
Line 16: You may subtract Michigan       Capital Deduction cannot be claimed.      it, homeless shelter/food bank credit,
state and city income tax refunds and                                              and the community foundation credit.
                                         Line 20: Miscellaneous subtractions
homestead property tax credit refunds    include:                                  You may not subtract:
that were included in AGI.                                                         • Itemized deductions from U.S.
                                         • Any part of a qualified withdrawal
Note to farmers: You may subtract        from an MESP account, including the       Schedule A.
(to the extent included in AGI) the      MAP, included in AGI.                     • Sick pay, disability benefits, and
amount that your State or city income    • Contributions to national or            wage continuation benefits paid to
tax refund and homestead property        Michigan       political   parties   or   you by your employer or by an
tax credit exceeds the business          candidates. The maximum deductions        insurance company under contract
portion of your homestead property       are $50 on a single return and $100 on    with your employer.
tax credit.                              a joint return.                           • Unemployment benefits included
Line 17: Michigan Education Savings      • Benefits from a discriminatory          in AGI, except railroad unemployment
Program. You may deduct, to the          self-insured       medical      expense   benefits.
extent not deducted in calculating       reimbursement plan, to the extent         • Distributions from a deferred
AGI, the total of all contributions      these reimbursements are included in      compensation plan received while a
less qualified withdrawals (compute      AGI.                                      resident of Michigan.
the contributions and withdrawals        • Proceeds and prizes included in         • Lottery winnings. (Exception:
separately for each account) made        AGI won in State of Michigan-             installment payments from prizes won
during 2010 by the taxpayer in the tax   regulated bingo, raffle, or charity       on or before December 30, 1988, may
year to accounts established through     games.                                    be subtracted.)
the MESP, including the MAP. The         • Amount of salary and wage
deduction may not exceed $5,000          expense that cannot be deducted on        Note: Include installment gross
for a single return or $10,000 for a     your federal return because you are       winnings as reported on your
joint return per tax year. There are     claiming a work opportunity credit,       Form W-2G, box 1, and show on
numerous education savings accounts      clinical testing (orphan drug) credit,    your Schedule W, Table 1, in the
available from other states and          or research credit. Attach a copy of      appropriate box.
investment companies, but Michigan       U.S. Forms 5884, 6765, or 8820 to
only allows a tax deduction for          substantiate this subtraction.
14
                                                Line-by-Line Instructions for Schedule 2
Line 1: City Income Tax Credit.                                     Michigan municipality, for an art                       component funds listed on page 48.
Everyone who pays Michigan income                                   institute in that municipality or to                    Enter the code number in the box on
tax is allowed partial credit for                                   benefit the art institute (art institutes               line 3. For individuals who contributed
income tax paid to Michigan cities.                                 are those whose primary function is                     to more than one community
Use Worksheet 4 below to estimate                                   the displaying and teaching of visual                   foundation, enter the number of one
the credit or use the online estimator                              arts)                                                   foundation and attach a list indicating
at www.michigan.gov/taxes and                                       • The State of Michigan for the                         the others. You must enter a valid
select City Income Tax Credit                                       preservation of State archives.                         code to receive credit.
Estimator from the Quick List,
Services dropdown menu.                                             Artwork created by the taxpayer also                    3a: Enter the total of all contributions.
1a: Enter your net city income tax                                  qualifies for credit if given to:                       3b: Enter the credit which is the
paid in 2010 from Worksheet 4 below.                                • The State of Michigan for display                     smaller of:
1b: Enter your city income tax credit.                              in a public place                                       • 50 percent of the contribution
                                                                    • A Michigan municipality for public                    reported on line 3a, or
Line 2: Public Contribution Credit.                                 display.                                                • $100 ($200 for a joint return).
A partial income tax credit can be
claimed for donations to a qualifying                               Artwork is an original visual creation                  Line 4: Homeless Shelter/Food Bank
Michigan public institution. The credit                             of quality in any size or shape, in any                 Credit. A partial income tax credit
is based on cash or the value of the                                media, using any materials. Its fair                    can be claimed when a donation is
item(s) donated. Values claimed must                                market value must be determined                         made by cash or check to a qualifying
be supported by written appraisals,                                 by an independent appraiser when                        shelter for homeless persons, a food
trade journals, etc., or by an itemized                             donated.                                                bank, a food kitchen, or other entity
receipt.                                                                                                                    whose primary purpose is to provide
                                                                    2a: Enter the total amount of public
Gifts qualify for credit if given to:                               contributions.                                          overnight accommodation, food, or
• Michigan colleges or universities                                                                                         meals to indigent persons. A partial
                                                                    2b: Enter the credit which is the                       income tax credit is also allowed for
and their fund-raising organizations                                smaller of:
• The Michigan Colleges Foundation                                                                                          the cash value of donations of food
• The State Art in Public Places                                    • 50 percent of the contribution                        made to any of these organizations
Fund                                                                reported on line 2a, or                                 but only if the donation is matched
• The Michigan Historical Museum                                    • $100 ($200 for a joint return).                       with similar food items by a retailer.
• Michigan public libraries                                         Line 3: Community Foundations                           Donations to organizations such as
• Michigan public broadcasting                                      Credit. A partial income tax credit                     secondhand stores and churches that
stations                                                            can be claimed when you donate to                       provide other services or shelter and
• A Michigan municipality, or a                                     an endowment fund of one of the                         food as a secondary purpose do not
nonprofit corporation affiliated with a                             certified community foundations or                      qualify for this credit.
                                                                                                                            Note: Contributions designated for a
                        WORKSHEET 4 - CITY INCOME TAX CREDIT                                                                “qualifying organization” (community
          To Determine Net City Income Tax                                                                                  foundation, homeless shelter, or food
          A. City income tax withheld from wages in 2010 (from your                                                         bank) and made through United Way
             W-2, box 19, or Schedule W, Table 1, Column F) .................................+                     .00
                                                                                                             _________      also qualify for this credit. If the credit
          B. Amount of tax paid with a Michigan city income tax return                                                      is for a community foundation, be sure
Step 1




          	 filed	in	2010	(do	not include penalty and interest).................................+                  .00
                                                                                                             _________
                                                                                                                   .00
                                                                                                                            to enter the appropriate two-digit code
          C. Estimated city income tax payments paid in 2010 .................................+              _________
          D. Subtotal. Add lines A through C ............................................................=         .00
                                                                                                             _________      number on Schedule 2, line 3.
          E. City income tax refund(s) received in 2010 ...........................................-               .00
                                                                                                             _________      Contributions qualifying for this credit
          F. Total Net City Income Tax Paid
             Subtract line E from line D. Carry to line 1a ....................................=                   .00
                                                                                                             _________
                                                                                                                            must be all of the following:
          To Determine Your City Income Tax Credit:                                                                         • Cash, check, or gifts of food
          If Your Total Net City Income Tax Paid (Michigan Schedule 2, line 1a) is:                                         donated in conjunction with a
                   $100 or less                        $101 through $150                           $151 or more             matching contribution made by a food
                                                Net city income
                                                                                                                            retailer or vendor;
         Net city income                                                               Net city income
                                      .00
         tax paid .............. _______        tax paid ..............        .00
                                                                          _______      tax paid ..............        .00
                                                                                                                 _______    • Made to organizations located in
                                      .20
         Multiply ............x _______         Subtract ........... -     $100.00
                                                                          _______      Subtract ........... -     $150.00
                                                                                                                 _______    Michigan whose primary purpose is
         CREDIT. Carry                             Subtotal .........          .00
                                                                          _______         Subtotal .........          .00
                                                                                                                 _______    to provide food and/or shelter to
Step 2




                                      .00
         to line 1b ............ _______        Multiply ............x         .10
                                                                          _______      Multiply ............x         .05
                                                                                                                 _______    indigent persons; and
                                                   Subtotal .........          .00
                                                                          _______         Subtotal .........          .00
                                                                                                                 _______    • Deductible       as    a    charitable
            Round all amounts to                Add ................. +      20.00
                                                                          _______      Add ................. +      25.00
                                                                                                                 _______    contribution under the IRC.
             the nearest dollar.
                                                CREDIT. Carry                          CREDIT. Carry                        4a: Enter the total cash contributions
                                                                             .00
                                                to line 1b ............ _______                                     .00
                                                                                       to line 1b ............ _______
                                                                                                                            and qualifying donated food value.
                                             Credit cannot exceed $10,000.
                                                                                                                                                                    15
4b: Enter the credit which is the         • Multiply the amount of tax shown                              8b: Enter the smaller amount of 50
smaller of:                               on MI-1040, line 17, by the resulting                           percent of line 8a or a maximum of
• 50 percent of the contribution          percentage.                                                     $50 for a single return or $100 for
reported on line 4a, or                   Your credit cannot exceed the smaller                           joint return.
• $100 ($200 for a joint return).         of: (1) the amount of tax imposed                               Line 9: Individual       or     Family
Note: Treasury may request receipts       by another government; or (2) the                               Development        Account      Credit.
for credits claimed on lines 2, 3,        amount of Michigan tax due on                                   Taxpayers eligible for this credit will
and 4. Cancelled checks will not be       salaries, wages, and other personal                             have received a certificate from the
accepted in place of receipts.            compensation earned in another state.                           Michigan State Housing Development
                                          See the Example below.                                          Authority (MSHDA) listing the
Line 5: Credit for Income Tax                                                                             eligible contribution amount and
Imposed by Government Units               Line 6: Michigan Historic Pres-
                                          ervation Tax Credit. To claim this                              tax credit. The certificate must be
Outside Michigan. Include the                                                                             attached to the taxpayer’s return.
amount of income tax paid to:             credit you must submit all of the
                                          supporting documentation. For a list                            Line 9a: Enter contribution amount
• A nonreciprocal state (see page 7)      of required forms see the instructions                          from certificate issued by MSHDA.
• A local government unit outside         on the back of the 2010 Historic
Michigan, including tax paid to local                                                                     Line 9b: Enter the income tax credit
                                          Preservation Tax Credit (Form 3581).
units located in reciprocal states                                                                        amount from the certificate.
                                          6a: Enter the amount from your 2010
• The District of Columbia                                                                                Line 10: Renewable               Energy
                                          Form 3581, line 9.
• A Canadian province.                                                                                    Surcharge Credit. Credit is based
                                          6b: Enter the amount from your 2010                             on an itemized surcharge for
Include only income tax paid to           Form 3581, line 14.
another government unit(s) on income                                                                      renewable energy that may appear on
earned while you were a Michigan          Line 7: College Tuition and Fees                                residential electric bills. Customers
resident and taxed by Michigan.           Credit. Enter the college tuition and                           of DTE Energy pay the maximum
                                          fees credit from Schedule CT, line 4e.                          surcharge of $3 per month, customers
Attach a copy of the return filed                                                                         of Consumers Energy pay $2.50
with the other government unit(s) to      Line 8: Vehicle Donation Credit.
                                          Taxpayers who donate automobiles                                per month, and other utilities may
your MI-1040.                                                                                             impose the surcharge. Taxpayers may
                                          to certain charities may claim a
Do not include taxes paid on income       nonrefundable Michigan tax credit                               claim the credit only if the surcharge
you subtracted on lines 8 through 20      if the automobile is transferred                                appears on their monthly utility bill.
of Michigan Schedule 1 (e.g., rental or   by the charity to an individual for                             To be eligible for this credit, AGI must
business income from another state,       employment       purposes.     Donors                           be no more than $65,000 for single/
part-year resident wages, etc.). If you   must receive a Donor Tax Credit                                 married filing separate or $130,000
claim credit for Canadian provincial      Certificate for Donated Vehicle (Form                           for joint filers.
tax, you must file a Michigan Resident    4284) from a certified charitable                               Line 10a: Enter your total monthly
Credit for Tax Imposed by a Canadian      organization to be able to claim the                            surcharges from all eligible 2010
Province (Form 777). Attach copies of     credit. Treasury may request copies                             electric bills.
your Canadian Federal Individual Tax      of Form 4284 for verification. Retain
Return (Form T-1), Canadian Form                                                                          Line 10b: Multiply line 10a by 0.20
                                          a copy of the form in your records.
T-4, U.S. Form 1116, and U.S. Form                                                                        (20%).
1040. Your credit is limited to the       8a: Enter Value of Donated Vehicle
portion of your Canadian provincial       from Form 4284.
tax not used as a credit on your U.S.
Form 1040.
5a: Enter the total income tax paid to
other government units. If you paid          EXAMPLE: Computing MI resident’s credit for tax imposed by another state.
tax to more than one unit, attach a        Tom is a Michigan resident and has Michigan wages of $22,000, $8,000 of wages
schedule showing the tax paid to each      earned in another state, and $2,000 in interest and dividends. Tom’s federal AGI is
government unit.                           $32,000. He has no Michigan adjustments (additions or subtractions) to AGI. After
5b: Credit amount. If more than            subtracting his $3,600 exemption from $32,000 income subject to tax, Tom’s taxable
one government unit is involved,           income is $28,400 (MI-1040, line 16). The other state imposed $600 tax on the
compute the credit amount for each         $8,000 Tom earned in that state. To compute the credit, determine the following:
government unit separately. Then
                                           Tom’s Michigan income tax: $28,400 x 4.35% (MI-1040, line 17) .................... $1,235
add the individual credit amounts and
enter the total on line 5b. Compute        Percentage of non-Michigan income to total income subject to tax ($8,000/$32,000) ...25%
your allowable credit as follows:          Michigan tax x 25% ................................................................................................ $309
• Divide your non-Michigan income          Tax imposed by the other state (enter on Schedule 2, line 5a) ...............................$600
subject to tax by both states by your
total income subject to Michigan tax         Credit allowed is $309, the lesser of $309 and $600 (enter on Schedule 2, line 5b).
(MI-1040, line 14); then
16
         General Information - Homestead Property Tax Credit (MI-1040CR)
The request for your Social Security     instructions for annualizing on page     federal income tax. (See instructions
number is authorized under USC           22.                                      beginning on page 20.) Forgiveness of
Section 42. Social Security numbers      Which Form to File                       debt must also be included household
are used by Treasury to conduct                                                   income.
matches against benefit income           Most filers should use MI-1040CR in      Household income includes the
provided by the Social Security          this booklet.                            following items not listed on the form:
Administration and other sources         If you are blind and own your
                                                                                  • The value over $300 in gifts of
to verify the accuracy of the home       homestead, are in the active military,
                                                                                  cash or merchandise received, or
heating credit and property tax credit   are an eligible veteran, or an
                                                                                  expenses paid on your behalf (rent,
claims filed and to deter fraudulent     eligible veteran’s surviving spouse,
                                         request MI-1040CR-2 and complete         taxes, utilities, food, medical care,
filings.                                                                          etc.) by parents, relatives, or friends
                                         MI-1040CR and MI-1040CR-2. Use
                                         the form that gives you a larger         • Scholarship, stipend, grant, or GI
Who May Claim a
                                         credit. If you are blind and rent        bill benefits and payments made
Property Tax Credit
                                         your homestead, you cannot use           directly to an educational institution
You may claim a property tax credit if                                            • Compensation for damages to
                                         MI-1040CR-2. Claim your credit on
all of the following apply:              MI-1040CR and check the appropriate      character or for personal injury or
• Your homestead is located in           box on line 5.                           sickness
Michigan.                                                                         • An       inheritance     (except      an
                                         When to File                             inheritance from your spouse)
• You were a Michigan resident at                                                 • Proceeds of a life insurance policy
                                         If you are not required to file an
least six months of 2010.                                                         paid on the death of the insured
                                         MI-1040, you may file your credit
• You pay property taxes or rent on      claim as soon as you know your 2010      (except benefits from a policy on your
your Michigan homestead.                 household income and property taxes      spouse)
• You were contracted to pay rent or     levied in 2010. If you file a Michigan   • Death benefits paid by or on behalf
own the home you live in.                income tax return, your credit claim     of an employer
                                         should be attached to your MI-1040       • Minister’s housing allowance
You can have only one homestead at
                                         return and filed by April 18, 2011,      • Forgiveness of debt, even if
a time, and you must be the occupant
                                         to be considered timely. To avoid        excluded from AGI (e.g., mortgage
as well as the owner or renter. Your
                                         penalty and interest, if you owe tax,    foreclosure, etc.)
homestead can be a rented apartment
                                         postmark no later than April 18, 2011.   • Reimbursement from dependent
or a mobile home on a lot in a mobile
                                         The filing deadline to receive a 2010    care and/or medical care spending
home park. A vacation home or                                                     accounts
                                         property tax credit is April 20, 2015.
income property is not considered                                                 • Payments made on your behalf
your homestead.                          Amending Your Credit Claim
                                                                                  except government payments made
Your homestead is in your state of       File a new claim form and write          directly to third parties such as an
domicile. Domicile is the place where    “Amended” across the top of the form.    educational institution or subsidized
you have your permanent home. It is      You must do this within four years of    housing project.
the place to which you plan to return    the date set for filing your original
                                                                                  Household income does NOT include:
whenever you go away. Even if you        income tax return.
spend the winter in a southern state,                                             • Payments received by participants
                                         Delaying Payment of
your domicile is still Michigan.                                                  in the foster grandparent or senior
                                         Your Property Taxes
College students and others whose                                                 companion program
permanent homes are not in Michigan      Senior citizens, disabled people,        • Energy assistance grants
are not Michigan residents. Domicile     veterans, surviving spouses of           • Government payments to a third
continues until you establish a new      veterans, and farmers may be able to     party (e.g., a doctor)
permanent home.                          delay paying property taxes. Contact
                                                                                  Note: If payment is made from money
                                         your local or county treasurer for
Property tax credit claims may not                                                withheld from your benefit, the
                                         more information.
be submitted on behalf of minor                                                   payment is part of household income.
children.                                Household Income                         (For example, the DHS may pay your
You may not claim a property tax         Household income is the total            rent directly to the landlord.)
credit if your household income is       income (taxable and nontaxable) of       • Money received from a government
over $82,650. The computed credit is     both spouses or of a single person       unit to repair or improve your
reduced by 10 percent for every $1,000   maintaining a household. It is your      homestead
(or part of $1,000) that household       AGI, plus all income exempt or           • Surplus food or food assistance
income exceeds $73,650. If filing a      excluded from AGI. Include gains         program benefits
part-year return, you must annualize     realized on the sale of your residence   • State and city income tax refunds
household income to determine if         regardless of your age or whether        and homestead property tax credits
the income limitation applies. See       or not these gains are exempt from
                                                                                                                         17
• Chore service payments (these           Note: School operating taxes are           unoccupied farmland. Do not include
payments are income to the provider       generally only levied on the non-          taxes on farmland that is not adjacent
of the service)                           homestead portion of the property          or contiguous to your home and that
• The first $300 from gambling,           and may not be included in taxes           you rent or lease to another person.
bingo, lottery, awards, or prizes         levied when computing the property         • If gross receipts from farming are
• The first $300 in gifts of cash or      tax credit on any portion of the home      less than your household income and
merchandise received, or expenses         not used as your homestead.                you have lived in your home more
paid on your behalf (rent, taxes,         Home used for business. If you use         than ten years, you may claim the
utilities, food, medical care, etc.) by   part of your home for business, you        taxes on your home and the farmland
parents, relatives, or friends            may claim the property taxes on the        adjacent and contiguous to your
• Amounts deducted from Social            living area of your homestead, but not     home.
Security or Railroad Retirement           the property taxes on the portion used     • If gross receipts from farming are
benefits for Medicare premiums            for business.                              less than your household income and
• Life, health, and accident insurance                                               you have lived in your home less than
premiums paid by your employer.           Owner-occupied duplexes. When              ten years, you may claim the taxes on
• Loan proceeds                           both units are equal, you are limited      your home and five acres of farmland
• Inheritance from a spouse               to 50 percent of the tax on both units,    adjacent and contiguous to your
• Life insurance benefits from a          after subtracting the school operating     home.
spouse                                    taxes from the total taxes billed.
                                                                                     You may not claim rent paid for
• Payments from a long-term care          Owner-occupied income property.            vacant farmland when computing
policy made to a nursing home or          Apartment building and duplex              your property tax credit claim.
other care facility.                      owners who live in one of the units        Farmland owned by a Limited
For more information on Household         or single family homeowners who            Liability Company (LLC) may not
Income, visit: www.michigan.gov/          rent a room(s) to a tenant(s) must do      be claimed for a homestead property
taxhouseholdincome.                       two calculations to figure the tax         tax credit by one of the individual
                                          they can claim and base their credit       members.
Property Taxes That                       on the lower amount. First, subtract
Can Be Claimed for Credit                                                            Include any farmland preservation
                                          20 percent of the rent collected from      tax credit in your household income.
Ad valorem property taxes that were       the tax claimed for credit. Second,        Enter the amount of credit you
levied on your homestead in 2010,         reduce the tax claimed for credit by       received in 2010 on line 17 or include
including collection fees up to 1         the amount of tax claimed as rental        it in net farm income on line 15.
percent of the taxes, can be claimed      expense on your U.S. Form 1040.
no matter when you pay them. You                                                     Homestead property tax credits are
                                          Example: Your home has an upstairs         not included in household income.
may add to your 2010 taxes the            apartment that is rented to a tenant for
amount of property taxes billed in                                                   If you included this amount in your
                                          $395 a month. Total property taxes on      taxable farm income, subtract it from
2010 from a corrected or supplemental     your home are $2,150. Of this amount,      household income.
tax bill. You must deduct from your       $858 is claimed as rental expense. The
2010 property taxes any refund of         calculations are as follows:               Rent That Can Be
property taxes received in 2010 that                                                 Claimed for Credit
                                          Step 1:
was a result of a corrected tax bill                                                 You must be under a lease or rental
from a previous year.                     $395 x 12 = $4,740 annual rent
                                                                                     contract to claim rent for credit. In
Do not include:                           $4,740 x .20 = $948 taxes attributable     most cases, 20 percent of rent paid is
• Delinquent property taxes (e.g.,        to the apartment                           considered property tax that can be
2009 property taxes paid in 2010)         $2,150 eligible taxes - $948 = $1,202      claimed for credit. The following are
• Penalty and interest on late            taxes attributable to owner’s homestead    exceptions:
payments of property tax                                                             • If you rent or lease housing that is
                                          Step 2:                                    subject to a service charge or fees
• Delinquent water or sewer bills
• Property taxes on cottages or           $2,150 total taxes - $858 taxes claimed    paid instead of property taxes, you
second homes                              as a business deduction = $1,292 taxes     may claim a credit based upon 10
• Association dues on your property       attributable to homestead                  percent of the gross rent paid. Use the
• Most special assessments for            Step 3:                                    amount the landlord gives you and
drains, sewers, and roads do not meet     The owner’s taxes that can be claimed      enter on MI-1040CR, line 47, and
specific tests and may not be included.   for credit are $1,202, the smaller of      follow instructions.
You may include special assessments       the two computations.                      • If your housing is exempt from
only if they are levied using a uniform                                              property tax and no service fee is
millage rate, are based on taxable        Farmers. Include farmland taxes in         paid, you are not eligible for credit.
value, and are either levied in the       your property tax credit claim if any      This includes university- or college-
entire taxing jurisdiction or they are    of the following conditions apply:         owned housing.
used to provide police, fire, or          • If your gross receipts from farming      • If your housing costs are
advanced life support services and are    are greater than your household            subsidized, base your claim on the
levied township-wide, except for all      income, you may claim all of your          amount you pay. Do not include the
or a portion of a village.                farmland taxes including taxes on          federal subsidy amount.
18
• If you are a mobile home park           entitled to a partial credit. If you are    Taxpayers” box on the bottom of page
resident, claim the $3 per month          a part-year resident, you must include      2.
specific tax on line 7, and the balance   all income received as a Michigan           The surviving spouse may file a joint
of rent paid on line 8.                   resident in household income (line          claim with the deceased. Enter both
• If you are a cooperative housing        28). Complete MI-1040CR, lines 36           names and Social Security numbers on
corporation resident member, claim        through 42, to determine the taxes          the form, and write “DECD” after the
your share of the property taxes on       eligible to be claimed for credit on        deceased’s name. Sign the return and
the building. If you live in a            your Michigan homestead.                    write “filing as surviving spouse” in
cooperative where residents pay rent                                                  the deceased’s signature block. Enter
                                          Residents of Nursing Homes
on the land under the building, you                                                   the date of death in the “Deceased
                                          and Other Adult Care Homes
may also claim 20 percent of that land                                                Taxpayers” box on the bottom of page
rent. (Do not take 20 percent of your     If you are a resident of a nursing          2. Include the deceased’s income in
total monthly payment.)                   home, adult foster care home, or home       household income.
• When you pay room and board in          for the aged, that facility is considered
one fee, you must also determine your     your homestead. If the facility pays        If filing as a personal representative
tax that can be claimed for credit        local property taxes (many do not),         or claimant to the refund of a single
based on square footage.                  you may claim your portion of those         deceased taxpayer(s), you must attach
                                          taxes for credit. You may not claim         U.S. Form 1310 or Michigan Claim
Example: You pay $750 a month for                                                     for Refund Due a Deceased Taxpayer
                                          rent. Ask the manager what your
room and board. You occupy 600 square                                                 (MI-1310). Enter the deceased’s name
                                          share is or, to determine it yourself,
feet of a 62,000 square foot apartment                                                in the Filer’s Name fields and the
                                          divide the amount of property tax
building. The landlord pays $54,000                                                   representative’s or claimant’s name
                                          levied on the facility in 2010 by the
in taxes per year. If you pay room and                                                and title in the Spouse’s Name fields.
                                          number of residents for which the
board in separate billings, you must                                                  See the “Deceased Taxpayer Chart of
                                          facility is licensed. This is your share.
base your property tax credit on rent.                                                Examples” on page 47. A claimant
                                          If both you and your spouse live in
Step 1: 600/62,000 = 0.0097               the facility, add your shares together.     must prorate to the date of death as
Step 2: $54,000 x 0.0097 = $524           If you lived in the facility only part of   noted in the following paragraph.
taxes you can claim for credit            the year, multiply this amount by the       The personal representative or
Home used for business. If you use        portion of the year you lived at the        claimant claiming a credit for a single
part of your apartment or rented home     facility.                                   deceased person or on a jointly filed
for business, you may claim the rent      Exception: Credit is not allowed            credit if both filers became deceased
on the living area of your homestead,     if your facility care charges are           during the 2010 tax year, must prorate
but not the rent on the portion used      paid directly to the facility by a          taxes to the date of death. Complete
for business.                             government agency.                          lines 38 through 42 to prorate the
                                          If you maintain a homestead and             property taxes. Annualize household
If You Moved in 2010                                                                  income. (See the instructions for lines
                                          your spouse lives in an adult care
Residents who temporarily lived           home, you may file a joint credit           29 and 34 on page 22.) Attach a copy
outside Michigan may qualify for          claim. Combine the tax for your             of the tax bills or rent receipts. If
a credit if Michigan remained their       homestead and your spouse’s share of        filing as a personal representative or
state of domicile. Personal belongings    the facility’s property tax to compute      claimant of a deceased taxpayer(s) for
and furnishings must have remained        your claim.                                 a jointly filed return, you must attach
in the Michigan homestead and                                                         a U.S. Form 1310 or MI-1310. Enter
                                          If you are single and maintain a
the homestead must not have been                                                      the names of the deceased persons in
                                          homestead (that is not rented) while
rented or sublet during the temporary                                                 the Filer’s and Spouse’s Name fields
                                          living in an adult care home, you may
absence. (See the definitions of                                                      and the representative’s or claimant’s
                                          claim either your homestead or your
resident on page 6 and domicile on                                                    name, title, and address in the Home
                                          share of the facility’s property tax, but
page 17.)                                                                             Address field. See “Deceased Taxpayer
                                          not both. Use the one that gives you
                                                                                      Chart of Examples” on page 47.
If you bought or sold your home or        the larger credit.
moved during 2010, you must prorate                                                   If you are a personal representative
                                          Deceased Claimant’s Credit                  or claimant filing a joint return, see
your taxes. Complete MI-1040CR,
lines 36 through 42, to determine         The estate of a taxpayer who died           “Deceased Taxpayers” on page 7.
the taxes that can be claimed for         in 2010 (or 2011 before filing a            Married During 2010
credit. Use only the taxes levied in      claim) may be entitled to a credit for
2010 on each Michigan homestead,          2010. The surviving spouse, other           If you married during 2010, combine
then prorate taxes based on days of       authorized claimant, or personal            each spouse’s share of taxes or rent
occupancy. Do not include taxes on        representative    can    claim    this      for the period of time he or she lived
out-of-state property.                    credit. Use the deceased’s Social           in separate homesteads. Then add
                                          Security number and the personal            the prorated share of taxes or rent for
Part-year Residents                       representative’s address. If taxpayer       the time you lived together in your
If you lived in Michigan at least six     died after December 31, 2009, enter         marital home. This only applies to
months during the year, you may be        the date of death in the “Deceased          homes located in Michigan.
                                                                                                                          19
Married Filing Separately                     Attach a schedule showing your            Step 4: Calculate the prorated taxes
                                              computation. For more information or      eligible for credit for the time they
Spouses who file separate Michigan            to help you calculate a prorated share    lived together. Divide the $1,860 by
income tax returns and share                  of taxes, see Michigan Homestead          365 days, then multiply by 274 days.
a household are entitled to one               Property Tax Credits for Separated           ($1,860/365) x 274 = $1,396
property tax credit. Complete your            or Divorced Taxpayers (Form 2105).
property tax credit claim jointly and                                                   Step 5: Calculate each individual’s
                                              Example: Bob and Susan separated          share of the prorated taxes. Multiply
include income from both spouses in
                                              on October 2, 2010. The annual taxes      the $1,396 by the percentages
household income. Divide the credit
                                              on the home they owned were $1,860.       determined in Step 3.
as you wish. If each spouse claims
                                              Susan continued to live in the home       Susan $1,396 x 44% = $614
a portion of the credit, attach a copy
                                              and Bob moved to an apartment on          Bob     $1,396 x 56% = $782
of the claim showing each spouse’s
                                              October 2 and paid $350 per month rent
share of the credit to each income tax                                                  Enter these amounts on MI-1040CR,
                                              for the rest of the year. Susan earned
return. Enter only your portion of the                                                  line 41, column A.
                                              $20,000 and Bob earned $25,000. They
credit on MI-1040, line 24.
                                              lived together for 274 days.              Susan uses lines 38 through 41,
Separated and Filing a Joint                  Step 1: Calculate       the    prorated   column B, to compute her share of
Return With Your Spouse                       income for each spouse for the 274        taxes for the remaining 91 days.
Your claim must be based on the tax           days they lived together. Divide each     Bob uses lines 43 through 44 to
or rent for 12 months on only one             spouse’s total income by 365 days,        compute his share of rent. Each
home. The household income must be            then multiply that figure by 274.         completes the remaining lines of
the combined income of both you and           Susan ($20,000/365) x 274 = $15,014       MI-1040CR according to the form
your spouse for the entire year.              Bob ($25,000/365) x 274 = $18,767         instructions.
Filing Separate Federal and                   Step 2: Add both prorated incomes         Single Adults Sharing a Home
State Returns and Maintaining                 together to determine the total income    When two or more single adults share
Separate Homesteads                           for the time they lived together.         a home, each may file a credit claim
You may each claim a credit. Each                  $15,014 + $18,767 = $33,781          if each has contracted to pay rent or
credit is based on the individual taxes                                                 owns a share of the home. Each adult
or rent and individual income for each        Step 3: Divide each individual’s          should file an individual claim based
person.                                       prorated share of income by the total     on his or her household income and
                                              income from Step 2 to determine the       prorated share of taxes or rent paid.
Separated or Divorced in 2010                 percentage of income attributable to
Figure your credit based on the               each.
taxes you paid together before your           Susan $15,014/$33,781 = 44%
separation plus the taxes you paid            Bob $18,767/$33,781 = 56%
individually after your separation.



                                  Line-by-Line Instructions for MI-1040CR
Lines not listed are explained on the form.   under Social Security Guidelines 42       taxable value on all land that qualifies
                                              USC 416).                                 for this credit.
Lines 1, 2, and 3: Enter        your
name(s), address, and Social Security         Property Tax and                          Line 7: Read “Property Taxes That
number(s). If you are married, filing         Household Income                          Can Be Claimed for Credit” on page
separate claims, enter both Social                                                      18 before you complete this line.
                                              Include all taxable and nontaxable
Security numbers, but do not enter            income you and your spouse received       Line 11: Enter all compensation
your spouse’s name.                           in 2010. If your family lived in          received       as     an     employee.
Line 5: Check the box(es) that                Michigan and one spouse earned            Include strike pay, supplemental
applies to you or your spouse as of           wages outside Michigan, include the       unemployment benefits (SUB pay),
December 31, 2010:                            income earned out of state in your        sick pay, or long-term disability
                                              household income. (See “Household         benefits, including income protection
a) Age 65 or older.                                                                     insurance, and any other amounts
                                              Income” on page 17 and “Property
Unremarried surviving spouse of a             Taxes That Can Be Claimed for             reported to you on Form W-2.
person who was 65 or older at the             Credit” on page 18.)                      Line 13: Enter     the    total     of
time of death. You are considered 65          Line 6: If you own your homestead,        the amounts from your U.S.
the day before your 65th birthday.            enter the 2010 taxable value from         Schedule C (business income or loss),
b) Deaf, blind (see page 10, 9c               your 2010 property tax statement or       U.S. Form 4797 (other gain or loss),
instructions), hemiplegic, paraplegic,        assessment notice. If you do not know     and U.S. Schedule E (rents, royalties,
quadriplegic,    or    totally    and         your taxable value, ask your local        partnerships, S corporations, estates,
permanently disabled (as defined              assessor. Farmers should include the      and trusts). Include amounts from
20
sources outside Michigan. Attach          dependent adults who live with you.          payments. Your 2010 Client Annual
these schedules to your claim.            Report the amount actually received.         Statement (DHS-1241) mailed by DHS
Line 14: Enter all annuity, retirement    Medicare premiums reported on                in January 2011 will show your total
pension, and IRA benefits and the         your Social Security or Railroad             DHS payments. Your statement(s)
name of the payer. This should be the     Retirement statement should be               may include the following: Family
                                          deducted.                                    Independence         Program         (FIP)
taxable amount shown on your U.S.
                                                                                       assistance, State Disability Assistance
Form 1099-R. If no taxable amount is      Line 19: Enter child support and
                                                                                       (SDA), Refugee Assistance, Repatriate
shown on your U.S. Form 1099-R, use       all payments received as a foster
                                                                                       Assistance, and vendor payments for
the amount required to be included        parent. Note: If you received a
                                                                                       shelter, heat, and utilities. Note: If you
in AGI. Enter “0” if all of your          2010 Custodial Party End of Year
                                                                                       received a 2010 FEN-851, subtract the
distribution is from your contributions   Statement (FEN-851) showing child
                                                                                       amount of child support payments
made with income previously included      support payments paid to the Friend
                                                                                       entered on line 19 from the total DHS
in AGI. Include reimbursement             of the Court, enter the child support
                                                                                       payments and enter the difference
payments such as an increase in a         portion here and attach a copy of the
                                                                                       here.
pension to pay for Medicare charges.      statement. See line 23.
Also include the total amount of any                                                   Line 25: Enter total adjustments
                                          Line 20: Enter all unemployment              from your U.S. Form 1040, line 36, or
lump sum distribution including           compensation received during 2010.
amounts reported on your U.S. Form                                                     U.S. Form 1040A, line 20. Describe
4972. Do not include recoveries of        Line 21: Enter other         nontaxable      adjustments to income. These
after-tax contributions or amounts        income. This includes:                       adjustments reduce household income
rolled over into another plan (amounts    • The value over $300 in gifts of            and include some of the following:
rolled over into a Roth IRA must be       cash or merchandise received, or             • Payments to IRAs, SEP, SIMPLE,
included to the extent included in        expenses paid on your behalf (rent,          or qualified plans
AGI).                                     taxes, utilities, food, medical care,        • Student loan interest deduction
You must include any part of a            etc.) by parents, relatives, or friends      • Moving expenses into or within
distribution from a Roth IRA that         • Scholarship, stipend, grant, or GI         Michigan can be included in Other
exceeds your total contributions to the   bill benefits and payments made              adjustments (MI-1040CR, line 25) to
Roth IRA regardless of whether this       directly to an educational institution       reduce household income. Moving
amount is included in AGI. Assume         • Compensation for damages to                expenses when moving out of
that all contributions to the Roth IRA    character or for personal injury or          Michigan cannot be included in Other
are withdrawn first. Note: Losses         sickness                                     adjustments to reduce household
from Roth IRAs cannot be deducted.        • Adoption subsidies                         income.
                                          • An       inheritance     (except      an   • Deduction for self-employment tax
Line 15: Enter the amount from U.S.                                                    • Self-employed health insurance
                                          inheritance from your spouse)
Schedule F (farm income or loss).                                                      deduction
                                          • Proceeds of a life insurance policy
Attach Schedule F.                                                                     • Penalty on early withdrawal of
                                          paid on the death of the insured
Line 16: Enter net capital gains and      (except benefits from a policy on your       savings
losses. This is the total of short- and   spouse)                                      • Alimony paid
long-term gains, less short- and long-    • Death benefits paid by or on behalf        • Jury duty pay you gave to your
term losses from your U.S. Schedule       of an employer                               employer
1040D, line 16 (gains) or line 21         • Minister’s housing allowance               • Archer Medical Savings Account
(losses cannot exceed $3,000). Include    • Forgiveness of debt (e.g., mortgage        (MSA) deduction
gains realized on the sale of your        foreclosure, etc.)                           • Any other adjustments to gross
residence regardless of your age or       • Reimbursement from dependent               income included on line 36 of your
whether or not these gains are exempt     care and/or medical care spending            2010 U.S. Form 1040.
from federal income tax.                  accounts                                     Also enter the amount of an NOL
Line 17: Enter alimony received           • Payments made on your behalf               deduction. Note: A deduction for
and other taxable income. Describe        except government payments made              a carryback or carryforward of an
other taxable income. This includes:      directly to third parties such as an         NOL cannot exceed federal modified
awards, prizes, lottery, bingo, and       educational institution or subsidized        taxable income. Attach a copy of your
other gambling winnings over $300;        housing project.                             MI-1045 (or U.S. Form 1045 if you did
farmland preservation tax credits if      Line 22: Enter        service-connected      not file an MI-1045).
not included in net farm income on        disability       compensation         and
line 15; and forgiveness of debt to the                                                Line 26: Enter health insurance
                                          pension benefits from the Veterans
extent included in federal AGI (e.g.,                                                  premiums,      Health    Maintenance
                                          Administration         and       workers’
mortgage foreclosure).                                                                 Organization (HMO) premiums or
                                          compensation       benefits.     Veterans    other insurance premiums paid for
Line 18: Enter your Social Security,      receiving retirement benefits should         yourself and your family. Include
Supplemental Security Income (SSI),       enter the benefits on line 14.               the following: medical insurance
and/or Railroad Retirement benefits.      Line 23: Enter the total payments            premiums, dental insurance premiums,
Include death benefits and amounts        made to your household by the                vision insurance premiums, prescription
received for minor children or other      DHS and all other public assistance          drug plan premiums, and automobile
                                                                                                                            21
insurance premiums (medical care                   claim does not have to annualize                                             each time rental amounts changed.
portion	only).                                     the deceased spouse’s income.                                                If you need more space, attach an
Do not include any insurance                                                                                                    additional sheet. Do not include
                                                    TABLE 3 - HOMESTEAD PROPERTY                                                more	 than	 12	 months’	 rent.	 If	 you	
premiums	deducted	on	lines	18	or	25,	                   TAX CREDIT PHASE OUT
amounts paid for income protection                                                                                              married	during	2010,	see	page	19.	Do	
insurance	 (long	 term	 disability),	                      Household                          Percentage                        not include amounts paid directly to
                                                             Income                           allowed for                       the landowner on your behalf by a
long‑term care insurance, or amounts                      $73,651	-	74,650                        90%
paid by an employer with pre‑tax                                                                                                government agency, unless payment
payroll contributions.
                                                          $74,651	-	75,650                        80%                           is made with money withheld from
                                                          $75,651	-	76,650                        70%                           your benefit. If you pay lot rent on
Property Tax Credit                                       $76,651	-	77,650                        60%                           your	 mobile	 home,	 subtract	 the	 $3	
Line 29: Multiply line 28 by 3.5                          $77,651	-	78,650                        50%                           per month property tax from the
percent	 (0.035)	 or	 the	 percentage	                    $78,651	-	79,650                        40%                           total rental amount and claim the
from Table 2. This is the amount                          $79,651	-	80,650                        30%                           remaining rent on line 43.
that will not be refunded. The                            $80,651	-	81,650                        20%                           Line 47: Multiply	 line	 46	 by	 10	
personal representative claiming a                        $81,651	-	82,650                        10%                           percent	(0.10)	(see	pages	18	and	19).
credit for a deceased taxpayer with                       $82,651	-	above                          0%
household	 income	 of	 $6,000	 or	                                                                                              Credit Proration
less must annualize the deceased’s                 To annualize income (project what                                            If you received FIP assistance or
income and use the annualized figure               it would have been for a full year):                                         other	 DHS	 benefits	 in	 2010,	 prorate	
to determine the nonrefundable                     Step 1: Divide 365 by the number                                             your credit to reflect the ratio of
percentage from Table 2. Then use                  of days the taxpayer was a Michigan                                          income from other sources to total
the actual household income to                     resident	in	2010.                                                            household income. To prorate your
compute the credit. See instructions                                                                                            credit,	 complete	 your	 MI-1040CR,	
                                                   Step 2: Multiply the answer from
for annualizing on this page.                                                                                                   lines	 1	 through	 30	 first,	 then	 use	
                                                   step	 1	 by	 the	 taxpayer’s	 household	
Line 34: Taxpayers with household                                                                                               the information from your form to
                                                   income	 (line	 28).	 The	 result	 is	                                        complete Worksheet 5 below.
income	 over	 $82,650	 (line	 28)	                 annualized income.
are not eligible for credit in any                 Line 35: If you and your spouse had
                                                                                                                                Alternate Property Tax Credit
category. The computed credit is                   a different residency status, check the
                                                                                                                                for Renters Age 65 or Older
reduced	 by	 10	 percent	 for	 every	                                                                                           Worksheet 6, Line B: Enter rent
                                                   box that applies to each spouse.
$1,000	 (or	 part	 of	 $1,000)	 that	 your	                                                                                     paid from line 44 or, if you live in
household	 income	 exceeds	 $73,650.	              Renters
                                                                                                                                service fee housing, enter amount
If you are filing a part‑year return               See	 “Rent	 That	 Can	 Be	 Claimed	 for	                                     from line 46. If you moved from one
(for a deceased taxpayer or a part‑                Credit”	on	page	18.                                                          rental homestead to another during
year	 resident),	 you	 must annualize                                                                                           the last two years (also see “If You
the household income to determine                  Line 43: If you rented a Michigan
                                                   homestead subject to local property                                          Moved	 in	 2010”	 on	 page	 19),	 enter	
if the credit reduction applies. If                                                                                             smaller of:
the annualized income is more                      taxes, enter the street number and
                                                   name, city, landlord’s name and                                              •	 The final month’s rent on your
than	 $73,650,	 use	 actual	 household	
                                                   address, number of months rented,                                            previous rented homestead multiplied
income to compute the credit; then
                                                   rent paid per month, and total rent                                          by	12	,	or
reduce	the	credit	10	percent	for	every	
$1,000	 (or	 part	 of	 $1,000)	 that	 your	        paid. Do this for each Michigan                                              •	 The actual rent paid from line 44
annualized	 income	 exceeds	 $73,650.	             homestead	rented	during	2010	and	for	                                        or line 46.
The surviving spouse filing a joint
                                                                                         WORKSHEET 5 - FIP/DHS BENEFITS
         TABLE 2 - PERCENT OF                       A.	 Enter	amount	from	line	23	(FIP	and	other	DHS	benefits) ...........................................                          _________
        TAXES NOT REFUNDABLE                        B.	 Enter	amount	from	line	28	(Household	Income).........................................................                       _________
                                                    C.	 Subtract	line	A	from	line	B	(if	amount	is	a	negative	value,	enter	“0”)........................                              _________
 ALL GENERAL CLAIMANTS
                                                    D. Divide line C by line B and enter percentage here ......................................................                     _________
 Income                % of Income
                                                    E. If you checked either box on line 5, enter amount from line 30. All others, multiply
 $0 - $82,650 ............................ 3.5%
                                                    							amount	on	line	30	by	60%	(0.60)	and	enter	here	(if	over	$1,200,	enter	$1,200) .........                                  _________
 OTHER CLAIMANTS*                                   F. Multiply line E by line D. If you are age 65 or older and you rent your
 Income                             % of Income            home, enter amount here and on line A of Worksheet 6 below.
 $3,000 or less ............................. 0%           Otherwise, enter here and on your MI-1040CR, line 32 ........................................                            _________
 $3,001 - $4,000 .......................... 1%
 $4,001 - $5,000 .......................... 2%
 $5,001 - $6,000 .......................... 3%                          WORKSHEET 6 - ALTERNATE PROPERTY TAX CREDIT
 More than $6,000 .................... 3.5%                                   FOR RENTERS AGE 65 AND OLDER
                                                    A.    Enter amount from line 30 or from Worksheet 5, line F, above ..................................                           _________
 *Other claimants are senior citizens or            B.    Enter rent paid from line 44 or line 46 ........................................................................          _________
 people who are paraplegic, hemiplegic,
                                                    C.	   Multiply	amount	on	line	28	by	40%	(0.40)	and	enter	here .........................................                         _________
 quadriplegic, blind, deaf, or totally and
 permanently disabled or unremarried                D.    Subtract line C from line B. If line C is more than line B, enter “0” .........................                           _________
 spouse of an individual 65 or older.               E.    Enter the larger of line A or line D here and carry amount to your
                                                    			   MI-1040CR,	line	32 ....................................................................................................   _________
22
Forms contained in this booklet (pages 23 - 46) are posted
separately. Select and print the form you need from the list.
Forms                                                                       Page No.
MI-1040, Individual Income Tax Return .......................................... 23-26
Schedule W, Withholding Tax Schedule ........................................... 27-30
Schedule 1, Additions and Subtractions.......................................... 31&33
Schedule 2, Nonrefundable Credits ................................................ 32&34
MI-1040CR, Homestead Property Tax Credit Claim........................ 35-38
Schedule NR, Nonresident and Part-year Resident Schedule ........... 39-40
Schedule CT, College Tuition and Fees Credit ................................. 41-42
4642, Voluntary Contributions Schedule ........................................ 43&44
4764, Energy Efficient Qualified Home Improvement Credit ....... 45&46
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 Book continued on next page.
                                                               TABLE 4 - FEDERAL SCHEDULES
   If you file any of the following schedules or forms with your federal return you must attach a copy to your Michigan income tax return:
   Schedule B or 1040A Schedule 1.......................... Interest and Dividend Income (if over $5,000)
   Schedule C or C-EZ .............................................. Profit or Loss From Business
   Schedules D and 4797........................................... Capital and Ordinary Gains and Losses
   Schedule E ............................................................ Supplemental Income and Loss
   Schedule F............................................................. Farm Income and Expenses
   Schedule R or 1040A Schedule 3.......................... Credit for the Elderly or Disabled
   Form 1040NR ....................................................... Nonresident Alien Income Tax Return
   Form 2555 ............................................................. Foreign Earned Income
   Form 3903 or 3903-F ............................................ Moving Expenses
   Form 4868 ............................................................. Application for Automatic Extension of Time to File U.S. Individual Income Tax Returns
   Form 6198 ............................................................. Computation of Deductible Loss From Activity Described in IRC Section 465(c)
   Form 8829 ............................................................. Expenses for Business Use of Your Home
   Form 8839 ............................................................. Qualified Adoption Expenses
   The above schedules and forms must report the location of the business activity or the location of any real property involved. Schedules show-
   ing rental of personal property must report where the property is being used. Attach any Schedule K-1s which support your attached Schedules
   D and E. If you do not attach these schedules, processing of your return may be delayed or your credit/subtraction may be denied.


                                  Deceased Taxpayer Chart of Examples (see instructions, pages 7 and 19.)
A. Joint Filers with Surviving Spouse                                                              D. Joint Filers with Personal Representative
1. Filer’s First Name                       M.I.   Last Name                                        1. Filer’s First Name                       M.I.   Last Name
  John                                      A      Brown              DECD                            John                                      A      Brown              EST OF
   If a Joint Return, Spouse’s First Name   M.I.   Last Name                                           If a Joint Return, Spouse’s First Name   M.I.   Last Name
  Jane                                      C      Brown                                              Jane                                      C      Brown              EST OF
                                                                                                       Home Address (No., Street, P.O. Box or Rural Route)
B. Single Filer with Personal Representative
1. Filer’s First Name                       M.I.   Last Name                                          John H. Jones                              REP          123 Main St.
  John                                      A      Brown              EST OF
   If a Joint Return, Spouse’s First Name   M.I.   Last Name
                                                                                                   E. Joint Filers with Claimant
  Sam                                       W      Jones              REP                           1. Filer’s First Name                       M.I.   Last Name
C. Single Filer with Claimant                                                                         John                                      A      Brown              DECD
1. Filer’s First Name                       M.I.   Last Name                                           If a Joint Return, Spouse’s First Name   M.I.   Last Name
  John                                      A      Brown              DECD                            Jane                                      C      Brown              DECD
  If a Joint Return, Spouse’s First Name    M.I.   Last Name                                           Home Address (No., Street, P.O. Box or Rural Route)
  John                                       P     Jones              CLAIMANT                        John H. Jones                              CLAIMANT              123 Main St.

                                WORKSHEET 7 - EXEMPTION ALLOWANCE FOR SCHEDULE NR
                                                      When One Spouse Is a Part-year Resident or Nonresident
  Computing Amount of Exemption for Part-year or Nonresident Income
  1. Michigan Taxable Income of spouse who is NOT a full year resident ......................................................1. ________________________
  2. Total Taxable Income of spouse who is NOT a full year resident .............................................................2. ________________________
  3. Divide line 1 by line 2 and enter percentage here ......................................................................................3. ________________________               %
  4. Michigan personal exemption allowance ...................................................................................................4. ________________________          $3,600
  5. Number of spouse’s special exemptions from MI-1040, line 9
      ______ x $2,300 ......................................................................................................................................5. ________________________
  6. Spouse’s qualified disabled veteran exemption ______ x $300 from MI-1040, line 9e .........................6. ________________________
  7. Add lines 4, 5, and 6...................................................................................................................................7. ________________________
  8. Multiply line 7 by the percentage on line 3................................................................................................8. ________________________
  Computing Amount of Prorated Exemption Amount for Dependents
  9. Michigan AGI for both spouses from Schedule NR, line 14b ...................................................................9. ________________________
  10. Total AGI from Schedule NR, line 14a ....................................................................................................10. ________________________
  11. Divide line 9 by line 10 and enter percentage here .................................................................................. 11. ________________________               %
  12. Multiply line 11 by exemption allowance of $3,600 ...............................................................................12. ________________________
  13. Multiply line 12 by the number of dependents claimed...........................................................................13. ________________________
  14. Multiply line 11 by the number of dependents claimed who are qualified disabled veterans
        (from MI-1040, line 9e) _______ x $300 x % from line 11 .........................................................14. ________________________
  15. Multiply number of dependents claimed w/special exemptions (blind, deaf, etc.)
      _______ x $2,300 x % from line 11 ...................................................................................................15. ________________________
  Computing Amount of Exemption for Resident Spouse
  16. Michigan resident spouse’s personal exemption allowance ....................................................................16. ________________________                    $3,600
  17. Number of Michigan resident spouse’s special exemptions from MI-1040, line 9
       ______ x $2,300 ..................................................................................................................................17. ________________________
  18. Michigan resident spouse’s qualified disabled veteran _______ x $300 from MI-1040, line 9e ........18. ________________________
  19. Add lines 16, 17, and 18 ..........................................................................................................................19. ________________________
  20. Add lines 8, 13, 14, 15, and 19 and carry to Schedule NR, line 19 .........................................................20. ________________________


                                                                                                                                                                                            47
Certified Community Foundations and Component Funds
A component fund serves donors and nonprofit organizations in a specific geographic area as a restricted fund of a
neighboring community foundation. The following are certified for the Community Foundations Credit for 2010.

01 Albion Community Foundation                                 50 Dickinson Area Community Foundation
56 Allegan County Community Foundation                              Crystal Falls Area Community Foundation
     Saugatuck/Douglas Area Community Fund                          Norway Area Community Foundation
63 Anchor Bay Community Foundation                             13 Four County Community Foundation
02 Ann Arbor Area Community Foundation                         18 Frankenmuth Community Foundation
     Community Foundation of Plymouth                          14 Fremont Area Community Foundation
     Ypsilanti Area Community Fund                                  Lake County Community Foundation
49 Baraga County Community Foundation                               Mecosta County Community Foundation
58 Barry Community Foundation                                       Osceola County Community Foundation
     Thornapple Area Enrichment Fund                           15 Grand Haven Area Community Foundation
17 Battle Creek Community Foundation                                Allendale Area Community Foundation
     Athens Area Community Foundation                               Coopersville Area Community Foundation
     Homer Area Community Foundation                           16 Grand Rapids Community Foundation
     Springfield Community Foundation                               Cascade Community Foundation
03 Bay Area Community Foundation                                    East Grand Rapids Community Foundation Fund
     Arenac County Fund                                             Ionia County Community Foundation
04 Berrien Community Foundation                                     Lowell Area Community Fund
45 Branch County Community Foundation                               Southeast Ottawa Community Foundation
36 Cadillac Area Community Foundation                               Sparta Community Foundation
     Missaukee Area Community Foundation                            Wyoming Community Foundation
     Missaukee Area Youth Fund                                 46 Grand Traverse Regional Community Foundation
64 Canton Community Foundation                                 48 Gratiot County Community Foundation
06 Capital Region Community Foundation                         37 Greenville Area Community Foundation
     City of East Lansing Fund                                      Lakeview Area Community Fund
     DeWitt Area Community Fund                                     Montcalm Panhandle Community Fund
     Eaton County Community Foundation                         43 Hillsdale County Community Foundation
     Lansing Fund                                              60 Huron County Community Foundation
     Leslie Community Fund                                     21 Jackson Community Foundation
     Meridian Township Fund                                    22 Kalamazoo Community Foundation
     Ovid-Elsie Community Fund                                      Covert Township Community Foundation Fund
     St. Johns Area Community Fund                             67 Keweenaw Community Foundation
     Williamston Area Beautification Fund                      77 Lapeer County Community Foundation
66 Central Montcalm Community Foundation                       23 Leelanau Township Community Foundation
44 Charlevoix County Community Foundation                      62 Lenawee Community Foundation
70 Chippewa County Community Foundation                        55 Livonia Community Foundation
28 Community Foundation for Muskegon County                    25 M & M Area Community Foundation
     Community Foundation for Mason County                     65 Mackinac Island Community Foundation
     Community Foundation for Oceana County                    39 Marquette Community Foundation
     Manistee County Community Foundation                           Greater Ishpeming Area Community Fund
29 Community Foundation for Northeast Michigan                      Gwinn Area Community Fund
     Iosco County Community Foundation                              Negaunee Area Community Fund
     North Central Michigan Community Foundation               26 Marshall Community Foundation
     Straits Area Community Foundation                         05 Michigan Gateway Community Foundation
09 Community Foundation for Southeast Michigan                 27 Midland Area Community Foundation
     Chelsea Community Foundation                                   Clare County Community Foundation
     Community Foundation for Livingston County                     Gladwin County Endowment Fund
10 Community Foundation of Greater Flint                       42 Mt. Pleasant Area Community Foundation
     Clio Area Community Fund                                  72 North Woodward Community Foundation
     Fenton Community Fund                                     75 Otsego County Community Foundation
     Flushing Community Fund                                   47 Petoskey-Harbor Springs Area Community Foundation
     Grand Blanc Community Fund                                76 Roscommon County Community Foundation
     Davison Community Fund                                    30 Saginaw Community Foundation
19 Community Foundation of Greater Rochester                       Chesaning Area Community Foundation Fund
11 Community Foundation of Monroe County                       61 Sanilac County Community Foundation
     Greater Milan Area Community Foundation                   71 Shelby Community Foundation
35 Community Foundation of St. Clair County                    31 Shiawassee Community Foundation
20 Community Foundation of the Holland/Zeeland Area            57 Southfield Community Foundation
54 Community Foundation of the Upper Peninsula                 74 Sterling Heights Community Foundation
     Alger Regional Community Foundation                       40 Sturgis Area Community Foundation
     Community Foundation for Delta County                          Constantine Area Community Foundation
     Gogebic-Ontonagon Community Foundation                         White Pigeon Area Community Foundation
     Les Cheneaux Community Foundation                         32 Three Rivers Area Community Foundation
     Rudyard Area Community Foundation                         73 Tuscola County Community Foundation
     Schoolcraft County Community Foundation                        Cass City Booster’s Club
     St. Ignace Area Community Foundation                           Greater Millington Area Fund
     Tahquamenon Area Community Foundation
     West Iron County Area Community Foundation
48
School District Code List (See MI-1040 or MI-1040CR, line 4.)
Michigan public school districts are listed alphabetically with code numbers to the left of the names. When more than
one district has the same name, the county or city name in parentheses helps you choose the right district. Residents,
choose the code for the district where you lived on December 31, 2010. Call your local assessor or treasurer if you do
not know your school district name. Nonresidents, enter “10000” in the school district code box.

31020   Adams Twp.              22030   Breitung Twp.             82030   Dearborn                       80110   Gobles
46020   Addison                 73180   Bridgeport-Spaulding      82040   Dearborn Heights               41120   Godfrey-Lee
46010   Adrian                  11340   Bridgman                  80050   Decatur                        41020   Godwin Heights
58020   Airport                 47010   Brighton                  76090   Deckerville                    25050   Goodrich
79010   Akron-Fairgrove         17140   Brimley                   46070   Deerfield                      25030   Grand Blanc
24030   Alanson                 46050   Britton-Macon             08010   Delton-Kellogg                 70010   Grand Haven
05010   Alba                    12020   Bronson                   17050   DeTour                         23060   Grand Ledge
13010   Albion                  76060   Brown City                82010   Detroit                        41010   Grand Rapids
01010   Alcona                  11310   Buchanan                  19010   DeWitt                         41130   Grandville
74030   Algonac                 28035   Buckley                   81050   Dexter                         62050   Grant
03030   Allegan                 73080   Buena Vista               31100   Dollar Bay-Tamarack City       42030   Grant Twp.
82020   Allen Park              56020   Bullock Creek             14020   Dowagiac Union                 38050   Grass Lake
70040   Allendale               75020   Burr Oak                  44050   Dryden                         59070   Greenville
29010   Alma                    02020   Burt Twp.                 58050   Dundee                         82300   Grosse Ile Twp.
44020   Almont                  78020   Byron                     78030   Durand                         82055   Grosse Pointe
04010   Alpena                  41040   Byron Center                                                     39065   Gull Lake
                                                                  74050   East China
50040   Anchor Bay                                                                                       52040   Gwinn
                                83010   Cadillac                  50020   East Detroit
81010   Ann Arbor
                                41050   Caledonia                 41090   East Grand Rapids              11670   Hagar Twp.
06010   Arenac Eastern
                                31030   Calumet                   38090   East Jackson                   35020   Hale
50050   Armada
                                30010   Camden-Frontier           15060   East Jordan                    03100   Hamilton
07010   Arvon Twp.
                                74040   Capac                     33010   East Lansing                   82060   Hamtramck
29020   Ashley
                                25080   Carman-Ainsworth          34340   Easton Twp.                    31010   Hancock
13050   Athens
                                55010   Carney-Nadeau             23050   Eaton Rapids                   38100   Hanover-Horton
25130   Atherton
                                79020   Caro                      11250   Eau Claire                     32060   Harbor Beach
60010   Atlanta
                                73030   Carrollton                82250   Ecorse                         24020   Harbor Springs
06020   Au Gres-Sims
                                59020   Carson City-Crystal       14030   Edwardsburg                    13070   Harper Creek
02010   AuTrain-Onota
                                76070   Carsonville-Pt. Sanilac   05060   Elk Rapids                     82320   Harper Woods
63070   Avondale
                                32030   Caseville                 32050   Elkton-Pigeon-Bay Port Laker   18060   Harrison
32010   Bad Axe                 79030   Cass City                 05065   Ellsworth                      64040   Hart
43040   Baldwin                 14010   Cassopolis                31070   Elm River Twp.                 80120   Hartford
80020   Bangor (Van Buren)      41070   Cedar Springs             49055   Engadine                       47060   Hartland
80240   Bangor Twp.             50010   Center Line               21010   Escanaba                       33060   Haslett
09030   Bangor Twp. (Bay)       05035   Central Lake              09050   Essexville-Hampton             08030   Hastings
07020   Baraga                  59125   Central Montcalm          67020   Evart                          63130   Hazel Park
21090   Bark River-Harris       75030   Centreville               66045   Ewen-Trout Creek               73210   Hemlock
19100   Bath                    15050   Charlevoix                40060   Excelsior                      62060   Hesperia
13020   Battle Creek            23030   Charlotte                                                        82070   Highland Park
                                                                  68030   Fairview
09010   Bay City                31050   Chassell Twp.                                                    60020   Hillman
                                                                  63200   Farmington
37040   Beal City               16015   Cheboygan                                                        30020   Hillsdale
                                                                  18020   Farwell
51020   Bear Lake               81040   Chelsea                                                          70020   Holland
                                                                  03050   Fennville
15010   Beaver Island           73110   Chesaning Union                                                  63210   Holly
                                                                  25100   Fenton
26010   Beaverton               54025   Chippewa Hills                                                   33070   Holt
                                                                  63020   Ferndale
58030   Bedford                 50080   Chippewa Valley                                                  61120   Holton
                                                                  50090   Fitzgerald
25240   Beecher                 32040   Church                                                           13080   Homer
                                                                  82180   Flat Rock
34080   Belding                 18010   Clare                                                            03070   Hopkins
                                                                  25010   Flint
05040   Bellaire                63090   Clarenceville                                                    72020   Houghton Lake
                                                                  25120   Flushing
23010   Bellevue                63190   Clarkston                                                        31110   Houghton-Portage
                                                                  40020   Forest Area
25060   Bendle                  63270   Clawson                                                          47070   Howell
                                                                  41110   Forest Hills
25230   Bentley                 39020   Climax-Scotts                                                    46080   Hudson
                                                                  36015   Forest Park
11010   Benton Harbor           46060   Clinton                                                          70190   Hudsonville
                                                                  19070   Fowler
10015   Benzie County Central   50070   Clintondale                                                      82340   Huron
                                                                  47030   Fowlerville
63050   Berkley                 25150   Clio                                                             63220   Huron Valley
                                                                  73190   Frankenmuth
34140   Berlin Twp.             12010   Coldwater
                                                                  10025   Frankfort-Elberta              58070   Ida
11240   Berrien Springs         56030   Coleman
                                                                  50100   Fraser                         44060   Imlay City
27010   Bessemer                32260   Colfax Twp.
                                                                  53030   Free Soil                      82080   Inkster
21065   Big Bay De Noc          11330   Coloma
                                                                  73200   Freeland                       16050   Inland Lakes
62470   Big Jackson             75040   Colon
                                                                  62040   Fremont                        34010   Ionia
54010   Big Rapids              38040   Columbia
                                                                  61080   Fruitport                      34360   Ionia Twp.
73170   Birch Run               39030   Comstock
                                                                  29050   Fulton                         22010   Iron Mountain
63010   Birmingham              41080   Comstock Park
                                                                                                         27020   Ironwood
46040   Blissfield              38080   Concord                   39050   Galesburg-Augusta
                                                                                                         52180   Ishpeming
63080   Bloomfield Hills        75050   Constantine               11160   Galien Twp.
                                                                                                         29060   Ithaca
32250   Bloomfield Twp.         70120   Coopersville              82050   Garden City
80090   Bloomingdale            78100   Corunna                   69020   Gaylord                        38170   Jackson
49020   Bois Blanc Pines        80040   Covert                    25070   Genesee                        58080   Jefferson (Monroe)
15020   Boyne City              20015   Crawford AuSable          82290   Gibraltar                      70175   Jenison
15030   Boyne Falls             82230   Crestwood                 21025   Gladstone                      69030   Johannesburg-Lewiston
63180   Brandon                 76080   Croswell-Lexington        26040   Gladwin                        30030   Jonesville
11210   Brandywine                                                45010   Glen Lake
                                33040   Dansville
29040   Breckenridge                                              03440   Glenn
                                25140   Davison


                                                                                                                                         49
39010   Kalamazoo                     58010   Monroe                 21060   Rapid River             69040   Vanderbilt
51045   Kaleva Norman Dickson         59045   Montabella             61210   Ravenna                 38020   Vandercook Lake
40040   Kalkaska                      61180   Montague               30070   Reading                 79150   Vassar
25110   Kearsley                      25260   Montrose               82110   Redford Union           32650   Verona Twp.
41140   Kelloggsville                 49070   Moran Twp.             67060   Reed City               59150   Vestaburg
41145   Kenowa Hills                  46100   Morenci                79110   Reese                   39170   Vicksburg
41150   Kent City                     54040   Morley Stanwood        61220   Reeths-Puffer
                                                                                                     27070   Wakefield-Marenisco
41160   Kentwood                      78060   Morrice                52110   Republic-Michigamme
                                                                                                     30080   Waldron
28090   Kingsley                      50160   Mt. Clemens            50180   Richmond
                                                                                                     64090   Walkerville
79080   Kingston                      25040   Mt. Morris             82120   River Rouge
                                                                                                     63290   Walled Lake
                                      37010   Mt. Pleasant           11033   River Valley
                                                                                                     50230   Warren
07040   L’Anse                        02070   Munising               82400   Riverview
                                                                                                     50240   Warren Woods
50140   L’Anse Creuse                 61010   Muskegon               63260   Rochester
                                                                                                     63300   Waterford
78040   Laingsburg                    61020   Muskegon Heights       41210   Rockford
                                                                                                     27080   Watersmeet Twp.
57020   Lake City                                                    71080   Rogers City
                                      38130   Napoleon                                               11320   Watervliet
25200   Lake Fenton                                                  50190   Romeo
                                      52090   Negaunee                                               33215   Waverly
31130   Lake Linden-Hubbell                                          82130   Romulus
                                      11200   New Buffalo                                            03040   Wayland Union
63230   Lake Orion                                                   72010   Roscommon
                                      50170   New Haven                                              82160   Wayne-Westland
50120   Lake Shore (Macomb)                                          50030   Roseville
                                      78070   New Lothrop                                            33220   Webberville
11030   Lakeshore (Berrien)                                          63040   Royal Oak
                                      62070   Newaygo                                                52160   Wells Twp.
13090   Lakeview (Calhoun)                                           17110   Rudyard
                                      52015   N.I.C.E. (Ishpeming)                                   63160   West Bloomfield
50130   Lakeview (Macomb)
                                      11300   Niles                  73010   Saginaw City            65045   West Branch-Rose City
59090   Lakeview (Montcalm)
                                      30050   North Adams-Jerome     73040   Saginaw Twp.            36025   West Iron County
25280   LakeVille
                                      44090   North Branch           81120   Saline                  70070   West Ottawa
34090   Lakewood
                                      55115   North Central          46130   Sand Creek              38010   Western
63280   Lamphere
                                      22045   North Dickinson        76210   Sandusky                82240   Westwood
33020   Lansing
                                      32080   North Huron            34120   Saranac                 25210   Westwood Heights
44010   Lapeer
                                      61230   North Muskegon         03080   Saugatuck               62090   White Cloud
80130   Lawrence
                                      45040   Northport              17010   Sault Ste. Marie        75070   White Pigeon
80140   Lawton
                                      41025   Northview              39160   Schoolcraft             17160   Whitefish
45020   Leland
                                      82390   Northville             64080   Shelby                  58110   Whiteford
49040   Les Cheneaux
                                      38140   Northwest              37060   Shepherd                61240   Whitehall
33100   Leslie
                                      22025   Norway-Vulcan          32610   Sigel Twp. 3 (Adams)    81140   Whitmore Lake
81070   Lincoln
                                      75100   Nottawa                32620   Sigel Twp. 4 (Eccles)   35040   Whittemore-Prescott
82090   Lincoln Park
                                      63100   Novi                   32630   Sigel Twp. 6 (Kipper)   33230   Williamston
25250   Linden
                                                                     11830   Sodus Twp.              81150   Willow Run
30040   Litchfield                    63250   Oak Park
                                                                     80010   South Haven             16100   Wolverine
82095   Livonia                       61065   Oakridge
                                                                     50200   South Lake              82365   Woodhaven-Brownstown
41170   Lowell                        33170   Okemos
                                                                     63240   South Lyon              82170   Wyandotte
53040   Ludington                     23080   Olivet
                                                                     82140   South Redford           41026   Wyoming
                                      71050   Onaway
49110   Mackinac Island                                              63060   Southfield
                                      23490   Oneida Twp.                                            74130   Yale
16070   Mackinaw City                                                82405   Southgate
                                      51060   Onekama                                                81020   Ypsilanti
46090   Madison (Lenawee)                                            41240   Sparta
                                      46110   Onsted
63140   Madison (Oakland)                                            70300   Spring Lake             70350   Zeeland
                                      66050   Ontonagon
05070   Mancelona                                                    38150   Springport
                                      61190   Orchard View
81080   Manchester                                                   73240   St. Charles
                                      35010   Oscoda
51070   Manistee                                                     49010   St. Ignace
                                      03020   Otsego
77010   Manistique                                                   19140   St. Johns
                                      19120   Ovid-Elsie
83060   Manton                                                       11020   St. Joseph
                                      32090   Owendale-Gagetown
23065   Maple Valley                                                 29100   St. Louis
                                      78110   Owosso
13095   Mar Lee                                                      06050   Standish-Sterling
                                      63110   Oxford
14050   Marcellus                                                    31140   Stanton Twp.
67050   Marion                        34040   Palo                   55120   Stephenson
76140   Marlette                      39130   Parchment              33200   Stockbridge               Point. Click. File.
52170   Marquette                     80160   Paw Paw                75010   Sturgis
13110   Marshall                      76180   Peck                   58100   Summerfield
03060   Martin                        24040   Pellston               02080   Superior Central
74100   Marysville                    13120   Pennfield              45050   Suttons Bay
33130   Mason (Ingham)                64070   Pentwater              73255   Swan Valley
58090   Mason (Monroe)                78080   Perry                  25180   Swartz Creek
53010   Mason County Central          24070   Petoskey
                                                                     48040   Tahquamenon
53020   Mason County Eastern          19125   Pewamo-Westphalia
80150   Mattawan                      17090   Pickford
                                                                     35030   Tawas                        Secure, Fast,
                                                                     82150   Taylor
79090   Mayville                      47080   Pinckney
                                                                     46140   Tecumseh                    and Convenient!
57030   McBain                        09090   Pinconning
                                                                     13130   Tekonsha
82045   Melvindale-North Allen Park   67055   Pine River
                                                                     08050   Thornapple Kellogg      Free e-file is available.
74120   Memphis                       30060   Pittsford
                                                                     75080   Three Rivers
75060   Mendon                        03010   Plainwell                                                 Do you qualify?
                                                                     28010   Traverse City
55100   Menominee                     82100   Plymouth-Canton
                                                                     82155   Trenton
56050   Meridian                      63030   Pontiac
                                                                     59080   Tri County
73230   Merrill                       32130
                                      74010
                                              Port Hope
                                              Port Huron
                                                                     63150   Troy                     www.MIfastfile.org
83070   Mesick
38120   Michigan Center               39140   Portage                32170   Ubly
21135   Mid Peninsula                 34110   Portland               13135   Union City
56010   Midland                       71060   Posen                  79145   Unionville-Sebewaing
81100   Milan                         23090   Potterville            50210   Utica
79100   Millington                    52100   Powell Twp.
                                                                     82430   Van Buren
68010   Mio-AuSable                   12040   Quincy                 50220   Van Dyke
61060   Mona Shores


50
                                                                                              INDEX
Income Tax                                                                       Page             Disabled, defined (line 5 instructions) ................................20
                                                                                                  Divorced, credit calculation ................................................20
Additions to income ...........................................................12                 Due date ..............................................................................17
Adoption credit ..................................................................11              Duplexes .............................................................................18
Age, exemption ..................................................................10               Farmers ...............................................................................18
Amending.............................................................................7            Home used for business ......................................................18
Appeals ................................................................................3         Homestead, defined .............................................................17
Blind, exemption ................................................................10               Household income defined..................................................17
Canadian provincial tax credit ...........................................16                      Household income limits ....................................................17
Charitable distribution subtraction.....................................14                        Income property ..................................................................18
City income tax credit ........................................................15                 Line-by-Line instructions....................................................20
College tuition and fees credit .....................................16, 41                       Married filing separately .....................................................20
Community foundation codes ............................................48                         Married in 2010...................................................................19
Community foundations credit ..........................................15                         Mobile homes......................................................................19
Deaf, exemption .................................................................10               Moving ................................................................................19
Deceased taxpayers ..................................................7, 19, 47                    Nursing homes ....................................................................19
Direct Deposit ...................................................................11              Part-year residents ...............................................................19
Disabled, defined ...............................................................10               Property taxes that can be claimed......................................18
Due date ...............................................................................4         Qualifying for a property tax credit ....................................17
Earned income tax credit ...................................................11                    Rent ...............................................................................18, 22
Electronic filing................................................................1, 4             Room and board ..................................................................19
Estimated payments .............................................................6                 School district code list .......................................................49
Exemptions ....................................................................3, 10              Senior citizens, defined (line 5 instructions) .......................20
Extensions ............................................................................6          Separated, credit calculation ...............................................20
Federal schedules needed ...................................................47                    Service fee housing .............................................................18
Filing requirements ..............................................................4               Shared housing ....................................................................20
Food bank credit ................................................................15               Subsidized housing .............................................................18
Historic preservation tax credit ..........................................16                     Tax-exempt housing ............................................................18
Homeless shelter credit ......................................................15
Homestead property tax credit .....................................11, 17                         Forms, Worksheets and Tables
Interest..................................................................................4       Forms
Line-by-Line instructions...................................................10                    4642............................................................................... 43-44
Michigan Education Savings Program...............................14                               4764.....................................................................................45
Michigan Education Trust ............................................12, 14                       MI-1040 ........................................................................ 23-26
Military pay/personnel ...................................................3, 12                   MI-1040CR ................................................................... 35-38
Net operating losses .................................................7, 12, 14                   Schedule 1 & Schedule 2 .............................................. 31-34
Nonresidents, income allocation ........................6, 12, 39, 47                             Schedule CT .................................................................. 41-42
Out-of-state income tax credit ...........................................16                      Schedule NR ................................................................. 39-40
Part-year residents, income allocation ...........................6, 39                           Schedule W ................................................................... 27-30
Penalty..................................................................................4        Worksheets
Pensions .........................................................................3, 13
Public contribution credit...................................................15                   Alternate Property Tax Credit for Renters 65 and Older ....22
Qualified Disabled Veterans exemption .........................3, 10                              City Income Tax Credit ......................................................15
Reciprocal states ..................................................................7             Exemption Allowance for Schedule NR ............................47
Renaissance zone deduction ..........................................4, 13                        Filer Eligible to Be Claimed as a Dependent .....................10
Repayments of income reported in a prior year ...................7                                FIP/DHS Benefits ...............................................................22
Residency .......................................................................6, 10            Stillbirth Credit ...................................................................11
Retirement ..........................................................................13           Use Tax .................................................................................9
Rounding numbers ...............................................................5                 Tables
School district code list ......................................................49                Federal Schedules ...............................................................47
Special exemptions ............................................................10                 Homestead Property Tax Credit Phase Out.........................22
State Campaign Fund .........................................................10                   Percent of Taxes Not Refundable........................................22
Stillbirth Credit ..................................................................11            Use Tax .................................................................................9
Subtractions from income ..................................................12                     Miscellaneous
Tax credits available.............................................................8
Unemployment compensation ...........................................10                           Customer Self Service...........................................................2
Vehicle Donation Credit.....................................................16                    Treasury Offices ..................................................................52
Venture Capital Investment Deduction ..............................14                             Where to Get Forms ........................................................2, 52
Voluntary Contributions Schedule .....................................10                          Other Taxes
Homestead Property Tax Credit                                                                     Michigan Business ..............................................................52
Alternate credit for senior citizens ......................................22                     Use ..............................................................................3, 9, 11
Amending........................................................................7, 17
Bought or sold a home ........................................................19
Cooperative housing ...........................................................19
Deceased claimant ..............................................................19
Delay paying property tax ...................................................17
                                                                                                                                                                                         51
Michigan Department of Treasury
                                                                                                                                       PRSRT STD
Lansing, MI 48922
                                                                                                                                   U.S. POSTAGE PAID
                                                                                                                                    Mich. Dept. of Treasury




                                   Review this label. If the information is correct and your filing status is the same as last year (single, married filing jointly, or
                                   married filing separately), place the label on the address block of your tax return. If any information is incorrect, do not use
                                   this label. Write the correct information on the return. If you use a tax preparer, take this booklet to your tax preparer and ask
                                   him or her to use this label. Using this label will help shorten the processing time of your return.


                                   Financial Information for Fiscal Year 2009
     This information is intended to provide an overview and broad perspective of the State’s financial operations. These figures were
     derived from the latest Michigan Comprehensive Annual Financial Report for the fiscal year ended September 30, 2009.
       State Revenues and Financing Sources                                                  State Expenditures and Financing Uses
                     (Millions of Dollars)                                                                    (Millions of Dollars)
     Financing Source                  Amount                 %                    Financing Use                        Amount      %
     Sales and Use Taxes               $7,372.8             27.7%                  Education                           $12,976.8 48.8%
     Income Tax                         5,856.8             22.0%                  Health                                3,980.0 15.0%
     Other Revenue & Taxes              5,005.3             18.8%                  Law Enforcement & Public Safety       2,156.3   8.1%
     Mich. Business, SBT & Ins. Taxes   2,546.2              9.5%                  Transportation                        1,988.8   7.5%
     State Education Tax                2,040.7              7.7%                  General Government                    1,553.7   5.8%
     Motor Vehicle & Fuel Taxes         1,860.6              7.0%                  Human Services                        1,393.5   5.2%
     Tobacco & Liquor Taxes             1,205.6              4.5%                  Revenue Sharing to Local Governments 1,040.0    3.9%
     Lottery Profits                      737.2              2.8%                  Economic Dev. & Environmental Reg.      861.6   3.2%
       Total                          $26,625.2            100.0%                  Other                                   674.5   2.5%
                                                                                     Total                             $26,625.2 100.0%



                     Unclaimed Property                                                                    Michigan Business Tax
The Michigan Department of Treasury is holding millions of dollars in                             Michigan Business Tax (MBT) is a tax on business
abandoned and unclaimed property belonging to Michigan residents. To                              activity conducted in Michigan. Individuals are
search for unclaimed property, visit www.michigan.gov/unclaimedproperty                           required to file an MBT return if they have business
                                                                                                  activity in Michigan and their apportioned or allocated
                                                                                                  receipts are $350,000 or greater for the 2010 tax year.
                        Treasury Offices                                                          Business activity is indicated if:
             Forms are available at Treasury offices listed below.                                • You are self-employed and/or have to pay
               Treasury office staff do not prepare tax returns.                                    self-employment tax with your federal income tax
                                                                                                    return, or
DETROIT                                 FLINT                                                     • You file a U.S. Schedule C, or
Cadillac Place, Suite 2-200             State Office Building, 7th Floor
3060 W. Grand Blvd.                     125 E. Union Street                                       • You include rental property on a U.S. Schedule E, or
                                                                                                  • Your earnings are reported to you on Form
DIMONDALE *                             GRAND RAPIDS
                                                                                                    1099-MISC rather than Form W-2.
7285 Parsons Drive                      State Office Building, 2nd Floor
(*NOT a mailing address)                350 Ottawa Avenue, NW - Unit 17                           Effective January 1, 2010, software developers
                                                                                                  producing MBT tax preparation software must support
ESCANABA                                STERLING HEIGHTS
                                                                                                  e-file for all eligible MBT forms that are included
State Office Building, 2nd Floor        41300 Dequindre Road, Suite 200
                                                                                                  in their tax preparation software. All eligible MBT
305 Ludington Street
                                        TRAVERSE CITY                                             returns prepared using software must be e-filed. Visit
(open 8 - 12 only)
                                        701 S. Elmwood Avenue, 4th Floor                          www.MIfastfile.org for more information.
                                        (open 8 - 12 only)

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Description: Printable Tax Form Mi 1040 document sample