· 2020. 9. 8. · ................................................................

Michigan Department of Treasury (Rev. 05-19), of 2 Issued under authority of Public Act 281 of 1967, as amended.

2019 MICHIGAN Individual Income Tax Return MI-1040 Amended Return (Include Schedule AMD) Return is due April 15, 2020. Type or print in blue or black ink.

1. Filer’s First Name M.I. Last Name 2. Filer’s Full Social Security No. (Example: 123-45-6789)

If a Joint Return, Spouse’s First Name M.I. Last Name

3. Spouse’s Full Social Security No. (Example: 123-45-6789) Home Address (Number, Street, or P.O. Box)

City or Town State ZIP Code 4. School District Code (5 digits – see page 60)

5. STATE CAMPAIGN FUND Check if you (and/or your spouse, if a. Filer filing a joint return) want $3 of your taxes to go to this fund. This will not increase b. Spouseyour tax or reduce your refund.

6. FARMERS, FISHERMEN, OR SEAFARERS

Check this box if 2/3 of your income is from farming, fishing, or seafaring.

7. 2019 FILING STATUS. Check one. a. Single * If you check box “c,” complete

line 3 and enter spouse’s full name b. Married filing jointly below:

c. Married filing separately*

8. 2019 RESIDENCY STATUS. Check all that apply. a. Resident

* If you check box “b” or “c,” you must completeb. Nonresident * and include Schedule NR.

c. Part-Year Resident *

9. EXEMPTIONS. NOTE: If someone else can claim you as a dependent, check box 9e, enter 0 on line 9a and enter $1,500 on line 9e (see instr.).

a. Number of exemptions (see instructions) ............................................................. 9a. x $4,400

b. Number of individuals who qualify for one of the following special exemptions: deaf, blind, hemiplegic, paraplegic, quadriplegic, or totally and permanently disabled 9b. x $2,700

c. Number of qualified disabled veterans ................................................................. 9c. x $400 d. Number of Certificates of Stillbirth from MDHHS (see instructions) ..................... 9d. x $4,400

e. Claimed as dependent, see line 9 NOTE above .................................................. 9e.

f. Add lines 9a, 9b, 9c, 9d and 9e. Enter here and on line 15 .............................................................................

10. Adjusted Gross Income from your U.S. Forms 1040 or 1040NR (see instructions) ................................ 10.

11. Additions from Schedule 1, line 9. Include Schedule 1 ............................................................................ 11.

12. Total. Add lines 10 and 11.......................................................................................................................... 12.

13. Subtractions from Schedule 1, line 28. Include Schedule 1 .................................................................... 13.

14. Income subject to tax. Subtract line 13 from line 12. If line 13 is greater than line 12, enter “0” ............ 14.

15. Exemption allowance. Enter amount from line 9f or Schedule NR, line 19.............................................. 15.

16. Taxable income. Subtract line 15 from line 14. If line 15 is greater than line 14, enter “0” ...................... 16.

17. Tax. Multiply line 16 by 4.25% (0.0425) ..................................................................................................... 17. NON-REFUNDABLE CREDITS AMOUNT

18. Income Tax Imposed by government units outside Michigan. Include a copy of the return (see instructions)........................ 18a. 00

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18b.

19. Michigan Historic Preservation Tax Credit carryforward (see instructions) ............................................................................ 19a. 19b.

20. Income Tax. Subtract the sum of lines 18b and 19b from line 17. If the sum of lines 18b and 19b is greater than line 17, enter “0” ............................................................... 20.

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2019 MI-1040, of 2 Filer’s Full Social Security Number

21. Enter amount of Income Tax from line 20................................................................................................... 21. 22. Voluntary Contributions from Form 4642, line 10. Include Form 4642...................................................... 22.

23. USE TAX. Use tax due on Internet, mail order or other out-of-state purchases from Worksheet 1 (see instructions) ................................................................................................................... 23.

24. Total Tax Liability. Add lines 21, 22 and 23 ................................................................................... 24.

REFUNDABLE CREDITS AND PAYMENTS

25. Property Tax Credit. Include MI-1040CR or MI-1040CR-2 ..................................................................... 25.

26. Farmland Preservation Tax Credit. Include MI-1040CR-5 ..................................................................... 26. FEDERAL

27. Earned Income Tax Credit. Multiply line 27a by 6% (0.06) and enter result on line 27b. ........................................................... 27a. 00 27b.

28. Michigan Historic Preservation Tax Credit (refundable). Include Form 3581............................................ 28.

29. Michigan tax withheld from Schedule W, line 6. Include Schedule W (do not submit W-2s) ................. 29.

30. Estimated tax, extension payments and 2018 credit forward..................................................................... 30.

31. 2019 AMENDED RETURNS ONLY. Taxpayers completing an original 2019 return should skip to line 32. Amended returns must include Schedule AMD (see instructions).

If you had a refund and/or credit forward on the original return, check box 31a and enter this amount as a31a. negative number on line 31c.

If you paid with the original return, check box 31b and enter the amount paid with the original return, plus31b. any additional tax paid after filing, as a positive number on line 31c. Do not include interest or penalty.

32. Total refundable credits and payments. Add lines 25, 26, 27b, 28, 29, 30 and 31c ........................ 32.

REFUND OR TAX DUE 33. If line 32 is less than line 24, subtract line 32 from line 24. If applicable, see instructions.

00 00Include interest and penalty ......................... YOU OWE 33.

34. Overpayment. If line 32 is greater than line 24, subtract line 24 from line 32 ................................ 34.

35. Credit Forward. Amount of line 34 to be credited to your 2020 estimated tax for your 2020 tax return ...

31c.

MICHIGAN

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36. Subtract line 35 from line 34.......................................................................................REFUND 36. a. Routing Transit Number b. Account NumberDIRECT DEPOSIT

Deposit your refund directly to your financial 1. institution! See instructions and complete a, b and c.

c. Type of Account

SavingsChecking 2.

Deceased Taxpayer. If Filer and/or Spouse died after December 31, 2018, enter dates below. Preparer Certification. I declare under penalty of perjury that this return is based on all information of which I have any knowledge.ENTER DATE OF DEATH ONLY. Example: 04-15-2019 (MM-DD-YYYY) Preparer’s PTIN, FEIN or SSN

Filer Spouse

Preparer’s Name (print or type) Taxpayer Certification. I declare under penalty of perjury that the information in this return and attachments is true and complete to the best of my knowledge. Filer’s Signature Date Preparer’s Business Name, Address and Telephone Number

Spouse’s Signature Date

By checking this box, I authorize Treasury to discuss my return with my preparer.

Refund, credit, or zero returns. Mail your return to: Michigan Department of Treasury, Lansing, MI 48956 Pay amount on line 33 (see instructions). Mail your check and return to: Michigan Department of Treasury, Lansing, MI 48929

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E-filingyourreturniseasy,fast,andsecure!

85%(morethan4million)ofallMichigantaxpayerschoosee-file.

E-filedreturnsareusuallyprocessedwithin14businessdays(seepage3).Allow14daysbeforecheckingthestatusofyoure-filedreturn.

Taxpreparerswhocomplete11ormoreMichiganIndividualIncomeTaxreturnsarerequiredtoe-filealleligiblereturnssupportedbytheirsoftware(seepage3).

Freee-fileisavailable.Doyouqualify?

Visitwww.MIfastfile.orgforalistofe-fileresources,howtofindane-fileprovider,andmoreinformationonfreee-fileservices.

This booklet is intended as a guide to help complete your return. It does not take the place of the law.

Individual Income Tax FORMS AND INSTRUCTIONS

FILING DUE DATE: APRIL 15, 2020

W W W. M I C H I G A N . G OV/ TA X E S

W W W. M I FA S T F I L E .O R G

MI-1040

UNCLAIMED PROPERTY.TheMichiganDepartmentofTreasuryisholdingmillionsofdollarsinabandonedandunclaimedpropertybelongingtoMichiganresidents.In the past three years, more than $260 million has been returned to rightful owners.TocheckifTreasuryisholdingfundsforyouoryourfamily,visitwww.michigan.gov/unclaimedproperty.

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Help With Your Taxes New for 2019Stillbirth Exemption. A stillbirth exemption is available if you are a parent of a stillborn delivered during 2019 and have been issued a Certificate of Stillbirth from the Michigan Department of Health and Human Services (MDHHS). See instructions for line 9d on page 10 for more details. Michigan Standard Deduction. If the older of you or your spouse (if married filing jointly) was born during the period January 1, 1946 through December 31, 1952, and reached the age of 67 on or before December 31, 2019, you may deduct $20,000 for single or married filing separately filers or $40,000 for joint filers against all income, rather than solely against retirement and pension income. Taxpayers that qualify for the Michigan Standard Deduction are not eligible to deduct retirement and pension income on the Michigan Pension Schedule (Form 4884).Expanded Subtraction for Retirement Benefits. If the older of you or your spouse (if married filing jointly) was born on or after January 1, 1953 but before January 2, 1958, have reached age 62 and receive Social Security exempt retirement benefits due to employment with a governmental agency, you may be eligible for a retirement and pension deduction. For more information, see Michigan Pension Schedule (Form 4884).City of DetroitThe Michigan Department of Treasury processes City of Detroit Individual Income Tax Returns. Your City of Detroit return may be filed with your Michigan return. For more information and instructions visit www.michigan.gov/citytax.Tax AssistanceThe Michigan Department of Treasury (Treasury) offers a variety of services designed to assist you and most are available 24 hours a day, seven days a week.

Internet Optionswww.michigan.gov/incometaxFind the following information on this Web site: • Current year forms and instructions• Answers to many tax preparation questions• Most commonly used tax forms• Free assistance in preparing your return• Retirement, Pension, Interest, Dividends, Capital Gain

Estimators

• Pay your tax due on the MI-1040, and make quarterly estimated income tax and individual income tax extension payments

• Other tax resources.Select “Check Your Tax Refund Status” where you can: • 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. Telephone Options517-636-4486Automated Information ServiceWith Treasury’s automated phone system, you can: • Request the status of your refund• Check the status of letters you have sent to Treasury• Request information on estimated payments• Order current tax year forms.While most questions can be answered by the Automated Information Service, customer service representatives are available from 8 a.m. to 4:45 p.m., Monday through Friday.Assistance is available using TTY through the Michigan Relay Service by calling 711.

FormsFind tax forms using the Internet and Telephone Options listed on this page. Commonly used forms are also available at Treasury offices (see back cover), most public libraries, Northern Michigan post offices, and Michigan Department of Health and Human Services (MDHHS) county offices.

The 2020 Census is coming and we need everyone in Michigan to say:

“Count me in!”The census happens every 10 years, and being counted

by completing your form is critical to the future success of Michigan. The census count affects federal funding for programs here in Michigan, congressional representation and so much more. The good news is responding to the census is convenient, and you can

respond by mail, phone or online. The census is also 100% confidential and secure, and

your information will not be shared. Make sure you and everyone you know says, “Count me in!” and completes the 2020 Census form. Keep an eye out for updates from Michigan Census 2020 on how to complete the census. For more information, visit www.michigan.gov/census

and follow us on Twitter @micensus.

IMPORTANT: To obtain information about your account using the Internet and Telephone Options, you will need the following information from your return:• Social Security number (SSN) of the primary filer (the

filer listed first on the return)• Tax year of the return• Adjusted gross income (AGI) or total household

resources• Filing status (single, married filing jointly, married filing

separately).

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General InformationAdjusted Gross Income (AGI)Throughout this booklet, Treasury refers to adjusted grossincome as AGI. When AGI is asked for, copy your AGIdirectlyfromyourU.S.Form 1040.Tax Rate, Exemption Allowances, and Deductions for Retirees and SeniorsTheincometaxratefor2019is4.25percent.For tax year 2019, the personal and stillbirth exemptionallowances are $4,400. The special exemption allowancefor deaf, blind, hemiplegic, paraplegic, quadriplegic, ortotally and permanently disabled is $2,700. The exemptionallowance for qualified disabled veterans is $400. See page10formoreinformation.Retirement and pension benefits included in AGI from apension or an Individual Retirement Account (IRA) maybe deductible. See Form 4884 instructions beginning on page17for furtherdetails regardingretirementandpensionbenefitdeductionsbasedonyearofbirthandfilingstatus.Seniorcitizensbornbefore1946maybeabletodeductpartoftheirinterest,dividends,andcapitalgainsthatareincludedin AGI. For 2019, the deduction is limited to a maximumof $11,771 for single filers and $23,542 for joint filers. SeeMichigan Schedule 1 (Schedule1)instructionsbeginningonpage13forfurtherdetailsregardingdividend/interest/capitalgainsdeductions.Filing Extension Granted for Military Personnel Serving in a Combat ZoneUnited States military personnel serving in a combat zoneonApril 15, 2020,will be given 180 days after leaving thecombat zone to file their federal and State tax returns andwill be exempt from penalties and interest.When e-filing,service men and women serving in combat zones shouldenterthewords“CombatZone”inthepreparernotes.Whenfilingapaperreturn,print“CombatZone”ininkonthetopofpage1oftheMI-1040.Appeals of Adjusted Refunds or CreditsTaxpayershave60daysfromtheissuanceofrefunddenials,refund adjustments, or Treasury decisions (other than finalassessment), that may be appealed under Section 21 of theRevenueAct,torequestinformalconferences.Choose e-file Instead of Paper Returns to Get Your Refund FastE-filing eliminates many of the errors that lengthenprocessing times. E-filed returns are usually processedwithin 14 days. Tax preparers who complete 11 or moreindividual income tax returns are required to e-file alleligible returns. Visit www.MIfastfile.org for a list ofe-file resources, how to find an e-file provider, and moreinformationonfreee-fileservices.Whene-filing,donotmailapapercopyofyourreturn.Property Tax Credits/RefundsA reminder from the Internal Revenue Service (IRS): Michigan homestead property tax credits and PrincipalResidence Exemption refunds received in 2019 may betaxable on your 2019 U.S. Form 1040. If you claimed

an itemized deduction for property taxes on your 2018 U.S.Form1040andthenreceivedarefundin2019fromtheStateoryourlocalunitofgovernmentforaportionofthosetaxes,youmust includethatrefundas incomeonyour2019U.S. Form 1040. If you have questions about the taxability(for federal tax purposes) of the refunds, call the IRS at1-800-829-1040.What You Should Know About Your Michigan 1099-G If you claimed itemized deductions on your 2018 federalincome tax return and received a Michigan tax refundin 2019, you will be mailed a 2019 Michigan 1099-G inearly 2020 that shows the amount of your 2018 refund thatwas issued in 2019. The refund amount will include anyamounts credited forward to 2019 estimated tax, prior yearrefundsissuedin2019,refundamounts interceptedforbacktax assessments or other debts (such as child support orcourt-ordered garnishments), and any portion of a refundassigned topayuse taxoranyamountyoucontributedasavoluntarycontribution. Therefundamountwillnot includehomesteadpropertytaxcredits,earnedincometaxcredits,orother refundable tax credits claimed on yourMI-1040.The 1099-G is not a bill. Visitwww.michigan.gov/taxesformoreinformationaboutyourMichigan1099-G.A Note About DebtsBy law, any money you owe to the State and other stateagenciesmustbedeductedfromyourrefundorcreditbeforeitisissued.Debtsincludemoneyyouoweforpast-duetaxes,student loans, child support due to theFriendof theCourt,an IRS levy,money due to a state agency, a court-orderedgarnishment, or other court orders. Taxpayers who aremarried filing jointlymay receive an Income Allocation for Non-Obligated Spouse (Form 743) after the return is filed.Completingandfilingthisformmaylimittheportionoftherefundthatcanbeappliedtoadebt.IfTreasuryappliesallorpartofyourrefundtoanyofthesedebts,youwillreceivealetterofexplanation.Who Must File a ReturnFilea return ifyouowe tax, areduea refund,oryourAGIexceeds your exemption allowance. You should also file aMichigan return if you file a federal return, even if youdonot owe Michigan tax. This will eliminate unnecessarycorrespondencefromTreasury.If your parents (or someone else) can claim you as adependenton their return andyourAGI is$1,500or less ifsingleormarriedfilingseparatelyor$3,000orlessiffilingajointreturn,youdonotneedtofileareturnunlessyouareclaimingarefundofwithholding.Important:Ifyourincomesubjecttotax(MI-1040,line14)islessthanyourpersonalexemptionallowance(line15)andMichiganincometaxwaswithheldfromyourearnings,youmustfileareturntoclaimarefundofthetaxwithheld. Who Must File a Joint ReturnIfyouareconsideredmarriedforfederaltaxpurposes,youmustfileyourMichiganreturnusingeitherthemarriedfilingjointlyor married filing separately filing status. This applies to allcoupleswhoaremarriedunderthelawsoftheStateofMichiganor under the lawsof another state. If you filed a joint federal

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income tax return, youmust file a jointMichigan income taxreturn.Ifyouandyourspousefiledseparatefederalreturns,youmayfileseparateorjointMichiganreturns.When to File Your ReturnAlwayscompleteyour federal taxreturnbeforeyourMichiganreturn. You may file a Michigan return even if you are notrequiredtofileafederalreturn.YourreturnmustbepostmarkednolaterthanApril15,2020,toavoidpenaltyandinterest.Paymentmustbeincludedwithyourreturn. Make your check payable to “State of Michigan” andwrite the lastfourdigitsofyourSocialSecuritynumber(s)and“2019incometax”onthefrontofthecheck.If you cannot file before the due date and you owe tax, youmayfileanApplication for Extension of Time to File Michigan Tax Returns (Form 4) with your payment. This allows anextensionoftimetofile,butnottopay.PaymentisduenolaterthanApril15,2020,otherwisepenaltyandinterestmayapply.Seepage6.Inordertoobtainarefund,youmustfileareturnclaimingtherefundwithinfouryearsof theduedate.Keepacopyofyourreturnandallsupportingschedulesforsixyears.Penalty and Interest Added for Filing and Paying LateIf you file and pay late, Treasury will add a penalty of5percentofthetaxdue.Afterthesecondmonth,penaltywillincrease by an additional 5 percent per month, or fractionthereof,uptoamaximumof25percentofthetaxdue.Ifyoupaylate,youmustaddpenaltyandinteresttotheamountdue.Visitwww.michigan.gov/taxes forthelatestinterestrates.

Identity TheftTax-related identity theft occurs when someone uses yourSocial Security number to file a tax return claiming afraudulent refund. Victims of tax-related identity theft canassistTreasurybyfollowingthestepslistedbelow:• Paperfileyourreturnandincludeallrequiredschedules.• Sendcopies,notoriginals,ofthefollowingdocuments: 1.Federalreturnandschedules(ifapplicable). 2.Identitytheftaffidavits(ifapplicable). 3.Government-issuedphotoidentification. 4.W-2sand/or1099s.Even if the above steps are followed,Treasurymay requireadditionalidentityverificationandyoumaybeasked:• Tocomplete an identity confirmationquiz,which is a tool

Treasuryusestoassistintheprotectionoftaxpayersagainsttax-relatedidentitytheft.

• To provide additional supporting documentation asneeded.

Visitwww.michigan.gov/identitytheft formore informationregardingtax-relatedidentitytheft.Foreign AddressesEnter your street address and city on the “Home Address”line. Enter your province or state name, country code andforeignpostalcodeonthe“CityorTown”line in thatorder.Refertotheexamplebelow.

1. Filer’s First Name M.I. Last Name JESSICA B SMITHIf a Joint Return, Spouse’s First Name M.I. Last Name

Home Address (Number, Street, or P.O. Box)123MAINST.MONTREALCity or Town State ZIP Code QUEBECCAA1B2C3

How to Complete and File Paper ReturnsCompleting Michigan FormsTreasury captures the information from paper income taxreturns using an Intelligent Character Recognition (ICR)process. If completing a paper return, avoid unnecessarydelays by following the guidelines below so your return isprocessedquicklyandaccurately.• Use black or blue ink. Donotusepencil,redink,orfelttip

pens.Donothighlightinformation.• Print using capital letters (UPPERCASE). Capital letters

areeasiertorecognize.• Print numbers like this: 0123456789

Donotputaslashthroughthezero( )orseven( ).• Fill check boxes with an [X]. Donotuseacheckmark.• Leave lines/boxes blank if they do not apply or if the

amountiszerounlessotherwisedirected.• Do not write extra numbers, symbols, or notes on the

return, such as cents, dashes, decimal points, commas, ordollar signs. Enclose any explanations on a separate sheetunless you are instructed to write explanations on thereturn.

• Stay within the lines whenenteringinformationinboxes.• If a form is multiple pages, allpagesmustbefiled.

• Report all amounts in whole dollars. Round downamountsof49centsorless.Roundupamountsof50centsor more. If cents are entered on the form, they will betreatedaswholedollaramounts.

When You Have FinishedIf the tax preparer is someone other than the taxpayer, he orshe must enter their Preparer Tax Identification Number(PTIN); Federal Employer Identification Number (FEIN);or Social Security number; their name, the business name,address,andtelephonenumberofthefirmheorsherepresents.Check the box to indicate that Treasury may discuss yourreturnwithyourtaxpreparer.Assemble your returns and attachments.Donotstapleyourcheck to your return. A sequence number is printed in theupper-rightcornerofthefollowingMichiganformstohelpyouassembletheminthecorrectorderbehindyourMI-1040:• Additions and Subtractions (Schedule1)• Nonresident and Part-Year Resident (ScheduleNR)• Farmland Preservation Tax Credit(MI-1040CR-5)• Schedule of Taxes and Allocation to Each Agreement

(ScheduleCR-5)• Property Tax Credit(MI-1040CRorMI-1040CR-2)

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• Schedule of Apportionment(MI-1040H)• Underpayment of Estimated Income Tax(MI-2210)• Withholding Tax Schedule (ScheduleW)• Adjustments of Capital Gains and Losses(MI-1040D)• Adjustments of Gains and Losses From Sales of Business

Property(MI-4797)• Voluntary Contributions Schedule(4642)• Sales and Other Dispositions of Capital Assets(MI-8949)• Pension Schedule (4884)• Pension Continuation Schedule(4973)• Married Filing Separately and Divorced or Separated

Claimants Schedule(5049)• Michigan Amended Return Explanation of Changes

(ScheduleAMD)• Michigan Excess Business Loss (MI-461)• Michigan Excess Business Loss Continuation Schedule

(Form5606)• Michigan Net Operating Loss Schedule MI-1045 (Schedule

MI-1045)• Michigan Net Operating Loss Deduction (Form5674)• Michigan Signed Distribution Statement for Joint Owners of

Farmland Development Rights Agreements (Form5678)• Michigan Resident Credit for Tax Imposed by a Canadian

Province (Form777)• FederalSchedules(seeTable3,page59)If you are also filing a Home Heating Credit Claim (MI-1040CR-7), do not attach it to your return; fold it andleaveitlooseintheenvelope.IfyouarealsofilingaCityofDetroitreturn,donotstapleittoyourStateofMichiganreturn;folditandleaveit looseintheenvelope.Where to Mail Your ReturnMailrefund, credit, or zero duereturnsto:

MichiganDepartmentofTreasuryLansing,MI48956

Ifyouowe tax,mailyourreturnto:MichiganDepartmentofTreasuryLansing,MI48929

Make your check payable to “State of Michigan” andprint the last four digits of your Social Security number and“2019 income tax” on the front of your check. To ensureaccurate processing of your return, send one check for eachreturn.Donotstapleyourchecktoyourreturn.Do not mail your 2019 return in the same envelope with a return for years prior to 2019; mail your 2019 return in a separate envelope.

Important Reminders• Missing pages. TheMI-1040,MI-1040CR,MI-1040CR-2,

andMI-1040CR-7aremultiple-page forms.Allpagesmustbe completed and submitted for Treasury to process thereturntimely.

• Use correct tax year forms. Forexample,donotusea2018formtofileyour2019return.

• Required attachments. If you do not include all therequired attachments with your return, your refundmaybereduced,denied,ordelayed.

• Schedules received alone. Only the MI-1040, MI-1040CR,MI-1040CR-2andMI-1040CR-7formsmaybe filed alone. All other forms must be filed with acompletedMI-1040.

• Missing, incomplete, or applied for Social Security number. If you don’t have an SSN or an IndividualTaxpayer Identification Number (ITIN), apply for onethrough the IRS.Do not file yourMichigan return untilyouhavereceivedyourSSNorITIN.

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Special SituationsExtensionsTorequestmoretimetofileyourMichigantaxreturn,sendapaymentofyourremainingestimatedtaxtoTreasurywithacopyofyourfederalextension(U.S.Form 4868)onorbeforetheoriginalduedateofyourreturn.Treasurywillextendtheduedate toyournewfederalduedate. Ifyoudonothaveafederal extension, file anApplication for Extension of Time to File Michigan Tax Returns (Form4)withyourpayment.Treasury will not notify you of approval.An extension is not necessary when you expect to claim a refund. Late filing penalty may not apply as refunds can be claimed up to 4 years from the original due date without an extension.An extension of time to file is not an extension of time to pay. Ifyoudonotpayenoughwithyourextension request,you must pay interest on the unpaid amount. Computeinterest from the original due date of the return. Interestis 1 percent above the prime rate and is adjusted on July 1and January 1. Visit www.michigan.gov/taxes for helpcalculatingthepenaltyandinterest.Youmaybe charged a penaltyof 10percent ormore if thebalancedueisnotpaidwithyourextensionrequest.WhenyoufileyourMI-1040,includeonline30theamountoftaxyoupaidwithyourextensionrequest.Includeacopyofyourfederalorstateextensionwithyourreturn. 2020 Estimated PaymentsUsually, youmust make estimated income tax payments ifyouexpecttoowemorethan$500whenyoufileyour2020MI-1040.This is after crediting theproperty tax, farmland,anyother refundableornonrefundablecredits,andamountsyoupaidthroughwithholding.Common income sources which make estimated paymentsnecessary are self-employment income; salary, wages orretirementbenefits ifyoudonothaveenough taxwithheld;tips, lump-sumpayments, unemployment benefits, dividendand interest income; income from the sale of property(capitalgains),businessincomeandrentalincome.Youmayaskyouremployertoincreaseyourwithholdingtocoverthetaxesonothertypesofincome.Estimatedpayments are dueApril 15, 2020; June15, 2020;September 15, 2020; and January 15, 2021. If you are afiscal year filer, the due dates are the same as your federalestimatedpaymentduedates.If you made estimated payments for 2019, Treasurywill send you personalized vouchers for 2020, unlessyou used a tax preparer. Do not use vouchers intendedfor another taxpayer. If you do not receive personalizedvouchers, use a tax preparer, or use tax preparationsoftware to complete your return, you can obtain aMichigan Estimated Individual Income Tax Voucher (MI-1040ES)fromTreasury’sWebsite.Exceptions. Ifyouexpect toowemore than$500,youmaynot have to make estimated payments if you expect your 2020withholdingtobeatleast:• 90percentofyourtotal2020tax,or• 100percentofyourtotal2019tax

• 110percentofyour total2019 tax if2019AGIwasmorethan$150,000iffilingjointorsingle($75,000ifyour2019filingstatusismarriedfilingseparately).

Total2019tax is theamountonyour2019MI-1040, line21,lesstheamountonlines25,26,27band28.Farmers, fishermen or seafarers may have to makeestimated payments, but have different filing options. Ifat least two-thirds of your gross income is from farming,fishing,orseafaring,youmay:• Delaypayingyourfirst2020quarterlyestimatedpayment

until as late as January 15, 2021, and pay the entireamountofyour2020estimatedtaxdue,or

• Fileyour2020MI-1040returnandpaytheentireamountoftaxdueonorbeforeMarch1,2021.

If you are a farmer or fisherman you will have filed a U.S.Schedule F,Schedule C,orSchedule Etoreportincomefrom these activities.Wages earned as a farm employee orfromacorporatefarmdonot qualifyyouforthisexception.YouareconsideredaseafarerifyourwagesareexemptfromincometaxwithholdingunderTitle46,Shipping,USC,Sec.11108.Failure to make payments or underpayment of estimated payments. Ifyoufailtomakerequiredestimatedpayments,pay late, or underpay in any quarter, Treasurymay chargepenalty and interest. Penalty is 25 percent of the tax due(with a minimum of $25) for failing to make estimatedpaymentsor10percent(withaminimumof$10)forfailingto pay enough estimated payments or making estimatedpayments late. Interest is one percent above the prime rateandiscomputedmonthly.TherateisadjustedonJuly1andJanuary1.ResidencyResident. You are aMichigan resident ifMichigan is yourpermanent home. Your permanent home is the place youintend to return to whenever you go away. A temporaryabsence from Michigan, such as spending the winter in asouthernstate,doesnot makeyouapart-yearresident.Income earned by a Michigan resident in a nonreciprocalstate(see“ReciprocalStates”)orCanadianprovinceistaxedbyMichigan,andmayalsobetaxedbytheotherjurisdiction.If you pay tax to both, you can claim a credit on yourMichigan return. See instructions forMI-1040, line 18 andtheexampleonpage11.Part-year resident. You are a part-year resident if, duringthe year, you move your permanent home into or out ofMichigan. You must pay Michigan income tax on incomeyouearned,received,oraccruedwhilelivinginMichigan.UseMichigan Nonresident and Part-Year Resident Schedule (Schedule NR) and the following guidelines to help figureyourtax:• Allocateyourincomefromthedateyoumovedintoorout

ofMichigan• Bonuspay,severancepay,deferredincome,andanyother

amount accruedwhile aMichigan resident are subject toMichigan tax no matter where you lived when youreceivedit

• Deferred compensation reported to you onU.S.Form1099-R andnonbusiness interest anddividendincome are allocated to the state of residence whenreceived

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• Part-year residents who lived in Michigan at least sixmonths of the tax year may qualify for a homesteadpropertytaxcredit(seepage28).

NOTE: Out-of-state students who live in Michigan whilethey are attending school are not considered Michiganresidents or part-year residents and should file asnonresidents.Nonresident. Use Schedule NR to figure your Michigantaxable income.Youmust payMichigan income tax on thefollowingtypesofincome:• Salary,wages,andotheremployeecompensationforwork

performedinMichigan,unlessyouliveinastatecoveredbyareciprocalagreement(see“ReciprocalStates”)

• Net rents and royalties from real and tangible personalpropertyinMichigan

• Capital gains from the sale or exchange of real propertylocated in Michigan, or of tangible personal propertylocatedinMichigan

• Patent or copyright royalties if the patent or copyright isusedinMichiganorifyouhaveacommercialdomicileinMichigan

• Income(includingdividendand interest income)fromanScorporation,partnershiporanunincorporatedbusiness,orotherbusinessactivityinMichigan

• Lotterywinnings• Prizeswon fromcasinosor licensedhorse tracks located

in Michigan. Nonresidents from reciprocal states mustalsodeclaretheseprizesastaxable.

Reciprocal StatesIllinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin have reciprocal agreements with Michigan.Michigan residents pay only Michigan income taxon their salaries and wages earned in any of thesestates. A Michigan resident may file a withholdingform with an employer in a reciprocal state to claimexemption from that state’s income tax withholding. The out-of-state incomemaymakeMichigan individual incometax estimated payments necessary. Residents of reciprocalstates working in Michigan do not have to pay Michigantaxonsalariesorwagesearned inMichiganbutdohave topayMichigan taxonbusiness incomeearnedfrombusiness

activity in Michigan. A resident of a reciprocal state whoclaims a refund of Michigan withholding tax must file aScheduleNRalongwithanMI-1040.Deceased TaxpayersA personal representative for the estate of a taxpayer whodied in2019(or2020beforefilinga2019return)mustfile ifthetaxpayerowestaxorisduearefund.Afull-yearexemptionisallowedforadeceasedtaxpayeronthe2019 MI-1040.Use the decedent’s name and Social Security number andyour address. If the taxpayerdiedafterDecember31,2018, enter the date of death in the “DeceasedTaxpayer” box onpage2onthe2019MI-1040.Thesurviving spouse isconsideredmarried for theyear inwhich thedeceased spousedied andmay file a joint returnfor that year. Write your name and the decedent’s nameand both Social Security numbers on the MI-1040. Write“DECD” after the decedent’s last name. You must reportthe decedent’s income. Sign the return. In the deceased’ssignature line, write “Filing as surviving spouse.” If thetaxpayer died after December 31, 2018, enter the date ofdeath in the “Deceased Taxpayer” box on page 2 of theMI-1040. Refer to example A in the “Deceased TaxpayerChartofExamples”below.If filing as a personal representative or claimant andyou are claiming a refund for a single deceased taxpayer,you must include a U.S. Form 1310 or Michigan Claim for Refund Due a Deceased Taxpayer (MI-1310). Enterthe decedent’s name in the Filer’s Name lines and therepresentative’s or claimant’s name, title, and addressin theHomeAddress line. Refer to exampleB orC in the“DeceasedTaxpayerChartofExamples”below.If filing as a personal representative or claimant of adeceased taxpayer(s) for a jointly filed return, you must include a U.S. Form 1310 or Michigan Claim for Refund Due a Deceased Taxpayer (MI-1310).Enter thename(s)ofthedeceasedpersons(s) in theFiler’s and/orSpouse’sNamelines and the representative’s or claimant’s name, title, andaddressintheHomeAddressline.Refer toexampleDorEinthe“DeceasedTaxpayerChartofExamples”below.For information about filing a credit claim, see “DeceasedClaimant’sCredit”onpage28.

JOHN A BROWN

JANE C BROWN DECD

C. Single Filer with Claimant

D. Joint Filers with Personal Representative1. Filer’s First Name M.I. Last Name


Home Address (Number, Street, or P.O. Box)

A. Joint Filers with Surviving Spouse1. Filer’s First Name M.I. Last Name

If a Joint Return, Spouse’s First Name M.I. Last NameJOHN A BROWN ESTOF

JANE C BROWN ESTOF

SAMW.JONES REP123MAINST.

E. Joint Filers with Claimant

JOHN A BROWN DECD

JANE C BROWN DECD

SAMW.JONES CLAIMANT123MAINST.

1. Filer’s First Name M.I. Last Name



B. Single Filer with Personal Representative

JOHN A BROWN ESTOF

SAMW.JONES REP123MAINST.




JOHN A BROWN DECD

SAMW.JONES CLAIMANT123MAINST.




Deceased Taxpayer Chart of Examples

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Amended ReturnsBeginning with tax year 2017, if you need to make acorrection to your return, file a new complete MI-1040.Check the Amended Return box at the top of page 1 ofthe form, and file the Schedule AMD and all applicableschedules and supporting documentation to amend yourreturn. If you are amending for tax year 2016or prior, youmustuseFormMI-1040X-12.Ifyouareduearefundonyouramendedreturn,youmustfileitwithinfouryearsoftheduedateoftheoriginalreturn.Once you file a joint return, you cannot choose to fileseparatereturnsforthatyearaftertheduedateofthereturn.If a changeonyour federal return affectsMichigan taxableincome,youmustfileanamendedreturnwithin120daysofthechange.Youmustincludeacopyofyouramendedfederalreturnandallsupportingschedules.Includepaymentofanytaxandinterestdue.To amend only a homestead property tax or homeheating credit, file a new MI-1040CR, MI-1040CR-2, or MI-1040CR-7 respectively, for the appropriate year. ChecktheAmendedReturnboxonthetopofpage1ofeachcreditclaim; do not file a new MI-1040 or Schedule AMD. Ifapplicable, includeacopyofyourproperty taxstatement(s),and/orleaseagreementandacopyofyourheatstatement.Business Income (Loss)Michigan defines business income as all income (loss)arising from transactions, activities, and sources in theregular course of the taxpayer’s trade or business.Businessincome includes distributive share income (loss) reportedon a federal schedule K-1, including interest, dividend,royalty income, net short-term and long-term capital gains(losses) and depreciation to the extent included in AGI.Rental income may be business income if it is an integralpart of the taxpayer’s tradeorbusiness.Business income isallocated to the statewhere the business activity occurs. IfthebusinessactivityisinMichiganandinanotherstate,useaSchedule of Apportionment(FormMI-1040H)toapportiontheincome.Ifyouhaveincomefrommorethanonebusiness,the income from each must be allocated or apportionedseparately; this is done on separate schedules for eachentity. Include all scheduleswith your return.Describe thebusiness or property that is the source of the income (loss)and list the activity locations. For assistance, refer to the“Business,Rental&RoyaltyActivityWorksheet” availableonTreasury’sWebsite.Net Operating Losses (NOL)If you have a federal NOL deduction, remove the federalNOLdeductionfromMichigantaxableincome,totheextentincluded in federalAGI.Residents accomplish this throughan addition on Michigan Schedule 1, line 7. If you arerequired to file aMichigan Schedule NR, the entire federalNOL deduction, no matter where earned, is allocated toColumnC.TheMichigan Net Operating Loss ScheduleMI-1045isusedto calculate theMichiganNOL for the loss year. The formmust be filed before a Michigan NOL carryover may beclaimed.

The Michigan NOL deduction in a carryforward year iscalculatedonMichigan Net Operating Loss Deduction(Form5674). To request a refund from a farming loss carrybackuse theMichigan Farming Loss Carryback Refund Request (Form5603).A separate worksheet showing how the loss has beenabsorbed should always be submitted to substantiate theclaimedcarryforward.ForassistancetrackinganNOL,referto the “Michigan NOL CarryoverWorksheet” available onTreasury’sWebsite.Repayments of Income Reported in a Prior YearIf you had to repay money in 2019 that you claimed asincomeinapreviousyear(e.g.,unemploymentbenefits),youmay be entitled to a credit on your 2019 return for the taxpaidinanearlieryear.If you subtracted the repayment in arriving at AGI, noadditional credit is allowedon theMichigan returnbecauseyourincomefortheyearhasbeenreducedbytherepaymentamount. If the amount of the repayment was deducted onU.S. Schedule A oracreditwasclaimedonU.S.Form 1040,acreditwillbeallowedontheMichiganreturn.To compute yourMichigan credit,multiply the amount yourepaid in 2019 by the tax ratewhichwas in effect the yearyou paid the tax. Then add the amount of the credit to theMichigantaxwithheldonMI-1040,line29.Write“ClaimofRight/Repayment”nexttoline29.Include a schedule showing the computation of the credit,proof of the repayment, U.S. Form 1040 and applicablefederalschedules.Composite Filer ParticipantsTaxpayers that participate on the Michigan Composite Individual Income Tax Return (Form 807) may be entitledtoacreditontheirMI-1040fortheirshareoftheMichiganincome tax liability paid on Form 807. Enter the amountof Michigan income tax paid on your behalf on MI-1040, line29andwrite“CompositeFiling”nexttoline29.

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TABLE 1 - USE TAX

AGI* Tax$0 - $10,000 ...................................................... $2$10,001 - $20,000 ............................................. $6$20,001 - $30,000 ............................................$10$30,001 - $40,000 ............................................$14$40,001 - $50,000 ............................................$18$50,001 - $75,000 ............................................$25$75,001 - $100,000 ..........................................$35Above $100,000 ..........................Multiply AGI by 0.04% (0.0004)* AGI from MI-1040, line 10.

WORKSHEET 1 - USE TAX

Line 1: Itemized purchases of $0 to $1,000 x 6 percent (0.06) OR “Table 1 - Use Tax” 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 2019 MI-1040, line 23. If the amount on Line 3 is 0, enter “0” on your 2019 MI-1040, line 23.

Use TaxEvery state that has a sales tax has a companion tax for purchases made outside that state by catalog, telephone, or Internet. In Michigan, that companion tax is called “use tax,” but might be described as a remote sales tax because it is a 6 percent tax owed on purchases made outside of Michigan. Use tax is due on catalog, telephone, or Internet purchases made from out-of-state sellers as well as purchases while traveling in foreign countries when the items are to be brought into Michigan. Use tax must be paid on the total price (including shipping and handling charges). Many Internet retailers charge tax on sales to Michigan residents. Beginning October 1, 2018, additional Internet retailers were required to pay Michigan sales tax and may collect tax on sales to Michigan residents. However, buyers using third-party platforms or marketplaces are less likely to have paid tax at the time of purchase and may still owe use tax. Taxpayers should review their records to determine if the retailer charged tax at the time of sale. If the Michigan tax was paid at 6 percent, no additional tax would be due.How to Report Use TaxUse Worksheet 1 to calculate your use tax and enter the amount of use tax due on MI-1040, line 23.Worksheet CalculationLine 1: For purchases of $0 to $1,000, multiply your total purchases times 6 percent (0.06) and enter the amount on Line 1, or, if you have incomplete or inaccurate receipts to calculate your purchases, you may use “Table 1 - Use Tax” to estimate your taxes (see the following example).

Line 1 should contain a number unless you made no purchases under $1,000 subject to the use tax. Line 2: In all cases, if a single purchase is $1,000 or more and tax is not collected by the seller, you must pay 6 percent use tax on that purchase. Example: Ed ordered a computer from a catalog retailer in New York for $1,437.50. Ed also purchased items over the Internet for less than $1,000 during the year, but lost his receipts. He is sure he did not pay Michigan sales tax. Ed’s AGI is $46,500. Ed would complete Worksheet 1 as follows:Line 1: Ed selects $18 from Table 1 ................................... $18Line 2: Ed enters $1,437.50 x 6 percent ........................ $86.25Line 3: Total use tax due ............................................. $104.25Ed would enter $104 (rounding down because the amount is 49 cents or less) on his MI-1040, line 23.Estimating your taxes does not preclude Treasury from auditing your account. If additional tax is due, you may receive an assessment for the amount of the tax owed, plus applicable penalty and interest.Use Tax on the DifferenceIf you paid at least 6 percent to another state on your purchase, you do not owe use tax to Michigan. If you paid less than 6 percent, you owe the difference. NOTE: The full 6 percent use tax is also owed on purchases made in a foreign country.For more information, visit www.michigan.gov/taxes.

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Line-by-Line Instructions for Individual Income Tax Return (MI-1040)Lines not listed are explained on the form. Amended Return box: If amending your 2019 return,check the box at the top of the form, include a completed ScheduleAMDandsupportingdocumentation.Line 1: Enteryournameandaddress.Lines 2 and 3: Enter your full nine-digit Social Securitynumber(s). Failure to provide a complete Social Securitynumbermayresultinprocessingdelays.Line 5: State Campaign Fund. These funds are onlydisbursed to candidates for governor, regardless of politicalparty, who agree to limit campaign spending andmeet thecampaignfundrequirements.Checkingtheboxwillnotraiseyourtaxorreduceyourrefund.Line 6: Farmers, fishermen, or seafarers may have tomakeestimatedpayments,andhavedifferentfilingoptions.Ifat least two-thirdsofyourgross income is fromfarming,fishing, or seafaring, check this box. (For estimate filinginformation,seepage6.)Line 7: Filing Status. Check the box to identify yourfiling status. If you filed a joint federal return, you mustalso file a joint Michigan return. Married couples whofile separate federal returns may file a separate or jointMichigan return. If your status is married filing separately(box c), enter your spouse’s full name in the spaceprovided and enter his or her Social Security number on line3. Ifyoufiledyourfederal returnasheadofhouseholdorqualifyingwidow(er),youmustfileyourMichiganreturnassingle.NOTE: Ifyouareclaimingahomesteadproperty taxcreditorhomeheatingcreditandyoulivedwithyourspouse,itmaybe easier to file a jointMichigan return because joint totalhouseholdresourcesarethebasisforcomputingthesecredits.Line 8: Residency. Check the box that describes yourMichigan residency for 2019. If you and your spouse hada different residency status during the year, check a boxfor each of you. Both nonresidents and part-year residentsmust file Nonresident and Part-Year Resident Schedule (ScheduleNR).Fordefinitionofresidency,seepage6.Line 9: Exemptions. Use this line to compute yourMichigan exemption amount plus your Michigan specialexemptions.Line 9a: Enter the number of exemptions for you, yourspouse (if filing jointly), and your dependents. Dependentsinclude both qualifying children and qualifying relativesunder the Internal Revenue Code. You may claim anexemption for these dependents even if your AGI exceedsthe limits to claim federal tax credits for these dependents.Multiply the number of exemptions by your exemptionallowanceof$4,400andenterthatamount.Line 9b: Michigan Special Exemptions: Deaf, Blind, or Certain Disabilities. You qualify for this exemption if youaredeaf,blind,hemiplegic,paraplegic,quadriplegic,ortotallyand permanently disabled.Complete this line, claimingonlyone exemption per person as it applies to you, your spouseand your dependents. If your dependent files a return, youor your dependent, but not both,may claim the dependent’sspecialexemption.

• Deaf means the primary way you receive messages isthrough a sense other than hearing (e.g., lip reading orsignlanguage).

• Blind means your better eye permanently has 20/200vision or less with corrective lenses, or your peripheralfieldofvisionis20degreesorless.

• Totally and permanently disabled means disabled asdefinedunderSocialSecurityGuidelines42USC416.If you are age 66 or older, you may not claim an exemption as totally and permanently disabled.

Line 9c: Qualified Disabled Veterans. A taxpayer mayclaim an exemption of $400 in addition to the taxpayer’sotherexemptions if (a) the taxpayerorspouse isaqualifieddisabled veteran, or (b) a dependent of the taxpayer is aqualified disabled veteran. To be eligible for the additionalexemption an individual must be a veteran of the activemilitary, naval, marine, coast guard, or air service whoreceived an honorable or general discharge and has adisability incurred or aggravated in the line of duty asdescribedin38USC101(16).Thisadditionalexemptionmaynotbeclaimedonmorethanonetaxreturn.Line 9d: Stillbirth Exemption. If you are a parent of astillborn delivered during 2019 and have been issued aCertificate of Stillbirth from the Michigan Department ofHealthandHumanServices(MDHHS),includeacopyofthecertificatewiththeMI-1040.Ifyoudonothaveacertificate,contact MDHHS at 517-335-8666 for an application orinformationonobtainingthecertificate.Line 9e: If someone else can claim you as a dependent,check the box, enter 0 on line 9a and enter $1,500 on line 9e. If your AGI is less than $1,500 and you had noMichiganincometaxwithheldfromyourwages,youdonot needtofilethisform.Line 10: Adjusted Gross Income. Enter your AGI fromyourU.S.Form1040,1040NR or1040SR.Youmust include copies of federal schedules that apply to you (see Table 3, page 59). For Michigan adjustments to AGI, see Schedule1,page41. InstructionsforcompletingSchedule1begin on page 13. If yourAGI includes an excess businessloss limitation, complete Michigan Excess Business Loss (FormMI-461).Line 17: Tax. Multiply the amount on line 16 by 4.25percent(0.0425).Line 18: Income Tax Imposed by Government Units Outside Michigan. Includetheamountofincometaxpaidto:• Anonreciprocalstate(seepage7)• A localgovernmentunit outsideMichigan, including tax

paidtolocalunitslocatedinreciprocalstates• TheDistrictofColumbia• ACanadianprovince.Includeonly income taxpaid to anothergovernmentunit(s)on income earnedwhile youwere aMichigan resident andtaxed by Michigan. For assistance with calculating thiscredit,gotowww.michigan.gov/incometax.Include a copy of the return filed with the other government unit(s) with your MI-1040. If you do not

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include the return filed with the other government unit(s) when claiming this credit, processing of your return may be delayed or your credit may be denied.Donotincludetaxespaidonincomeyousubtractedonlines10through27ofSchedule1(e.g.,rentalorbusinessincomefromanotherstate,part-yearresidentwages).IfyouclaimcreditforCanadian provincial tax, you must file a Michigan Resident Credit for Tax Imposed by a Canadian Province (Form777).Include copies of your Canadian Federal Individual Tax Return (Form T-1), Canadian Statement of Remuneration Paid (Form T-4), U.S. Form 1116, and U.S. Form 1040 andapplicable federal schedules. Your credit is limited to theportionofyourCanadianprovincialtaxnotusedasacreditonyourU.S.Form1040.Thecreditisnotavailablefortaxpaidtootherforeigncountries.Line 18a: Enter the total income tax paid to othergovernmentunitsonincomealsotaxedbyMichigan.Includea schedule if tax was paid to more than one source.Also include a copy of the return(s).Line 18b: Creditamount.Ifmorethanonegovernmentunitisinvolved,computethecreditamountforeachgovernmentunit separately.Thenadd the individual credit amounts andenterthetotalonline18b.Computeyourallowablecreditasfollows:Step 1:Divideyourout-of-stateincomethatissubjecttotaxinboth statesbyyour total incomesubject toMichigan tax (MI-1040,line14);thenStep 2: Multiply the amount of tax shown on MI-1040, line17,bytheresultingpercentage.Your credit cannot exceed the smaller of: (1) the amountof tax imposed by another government; or (2) the amountofMichigan tax due on salaries,wages, and other personalcompensationearnedinanotherstate.Example: Computing Michigan resident’s credit for tax imposed by another state. Hunter isaMichiganresidentandhas$40,000ofMichiganwages,$10,000ofwagesearnedinanotherstate,and$3,000in interest and dividends. Hunter’s federal AGI is $53,000.He has noMichigan adjustments (additions or subtractions)toAGI.Aftersubtractinghis$4,400exemptionfrom$53,000income subject to tax, Hunter’s taxable income is $48,600(MI-1040,line16).Thisresultsinataxof$2,066($48,600x0.0425)that isreportedonMI-1040,line17.Theotherstateimposed$700taxonthe$10,000Hunterearnedinthatstate.Tocomputethecredit,determinethefollowing:Step 1: Calculate the percentage of out-of-state income tototalincomesubjecttoMichigantax($10,000/$53,000)=19%Step 2:MultiplyMichigantaxof$2,066x19%=$393Step 3: On MI-1040, line 18a, enter $700, the taximposed by the other state. On MI-1040, line 18b,enter $393 (the credit is the lesser of $700 or $393). Line 19: Michigan Historic Preservation Tax Credit. Taxpayers eligible for this credit receive a certificate fromthe State Historic Preservation Office indicating theireligibility. To claim this credit you must submit all of thesupportingdocumentation.ForalistofsupportingformsandschedulesseetheForm3581instructions.

Line 19a: Entertheamountfromyour2019Form3581,line9.Line 19b: Entertheamountfromyour2019Form3581,line14.Line 20: Income Tax. Carrythisamounttoline21.Line 22: Voluntary Contributions. Contributions can bemadeon theVoluntary Contribution Schedule (Form4642).IncludeForm4642 toensureyourcontributionsareappliedto the fund(s) of your choice. Contributions will increaseyourtaxdueorreduceyourrefund. When filing an amendedMI-1040, you cannot amend yourvoluntarycontributionsamount.Youmustentertheamountfromyouroriginalreturn.Line 23: Use Tax. Enter use tax due from Worksheet 1, line3,onpage9.When filing an amendedMI-1040, you cannot amend youruse tax amount. You must enter the amount from youroriginal return. To amend your use tax, write a letter toMichiganDepartmentofTreasury,BusinessTaxesDivision,P.O.Box30427,Lansing,MI48909.Line 25: Propertytaxcreditinformationbeginsonpage26. Line 26: Farmland preservation credit applies to farmersonly.SeeMI-1040CR-5instructionsforinformation.Line 27: Michigan Earned Income Tax Credit (EITC). Taxpayers who are eligible to claim an EITCon their federal return may claim a Michigan EITCequal to 6 percent of the taxpayer’s federal credit. Enteryour federal EITC amount on line 27a and 6 percent of line27aonline27b.Line 28: Michigan Historic Preservation Tax Credit. Enter the amount from your 2019 Historic Preservation Tax Credit (Form3581), line16aor16b,whichever applies.Include a completed Form 3581 and U.S. Form 3581, ifapplicable.Line 29: Enter the totalMichigan taxwithheld(fromyourScheduleW).Ifapplicable,includeanycreditforrepaymentsunder the “Claim of Right” and/or Michigan income taxpaidonyourbehalf on a2019Form807.See “RepaymentsofIncomeReportedinaPriorYear”and/or“CompositeFilerParticipants”onpage8.Line 30: Enter the total estimated tax paidwith your 2019 MI-1040ES,theamountpaidwithaForm4,andtheamountof your 2018 credit forward (2018MI-1040, line 35) to thisyear’stax.Do not include a prior year’s refund amount.Line 31: This line is for amended returns only. If youchecked box 31a to indicate you received a refund and/orcredit forward from your original return, enter the refundamount received as a negative number. If you checked box31b to indicateyoupaidwithyouroriginal return,enter theamountofyourpaymentasapositivenumber.Donotincludeanyinterestorpenaltypaidwithyouroriginalreturn.Whenfilinganamendedreturn,youmustincludeScheduleAMD.Example 1: Tina is amending her return. Tina received a$100refundonheroriginal return.Tinachecksbox31aandenterstherefundasanegativenumber.Tinareports-$100online31c.Example 2: Tom is also amending his return. Tom paid atotalof$275withhisoriginalreturn;$250wasfor taxdue,$5wasforinterestand$20wasforpenalty.Tomchecksbox

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31bandenterstheamountpaidasapositivenumberbutdoesnotincludeinterestorpenalty.Tomenters$250online31c.Line 33: You Owe. If line 32 is less than line 24, enterthe difference. This is the tax you owe with your return.If line 32 is negative, treat it as a positive amount andadd it to the amount on line 24. Enter the result on line 33. Payments can now be made electronically. Go to www.michigan.gov/iitformoreinformation.Ifthebalancedue is less than $1, no payment is required, but you muststill file your return. See “Pay” address on page 2 of your MI-1040.If you pay after the due date of the return, penalty andinterestforlatepaymentisalsodue.Penaltyaccruesmonthlyat 5 percent of the tax due, and increases by an additional5 percent per month, or fraction thereof, after the secondmonth, up to a maximum of 25 percent of the tax due (e.g., penalty on a $500 tax due will be $125 if the tax isunpaidforsixmonths).See“PenaltyandInterestAddedforFilingandPayingLate”onpage4.Addpenaltyandinteresttoyourtaxdueandenterthetotalonline33.Generally, if you owemore than $500, you are required tomake estimated payments. Taxpayers required to makeestimated payments may owe penalty and interest forunderpayment,latepayment,orforfailingtomakeestimatedtaxpayments.UsetheMichigan Underpayment of Estimated Income Tax (FormMI-2210)tocomputepenaltyandinterest.If you do not file anMI-2210, Treasurywill compute yourpenalty and interest and send you a bill. If you annualizeyour income, you must complete and include an MI-2210.Enterthepenaltyandinterestamountsonthelinesprovided.Line 35: Credit Forward. Credit forward is only availableon an original return andwill not be accepted as away toclaimyouroverpaymentonanamendedreturn.Line 36: Refund. This includes any tax you overpaid andanycreditsyouclaimed.Thestatedoesnot refundamountslessthan$1.Mailyourreturntothe“Refund,credit,orzeroreturns”addressonpage2ofyourMI-1040.Direct DepositDirect Deposit is only available on an original return andmaynotbeusedtoissuearefundonanamendedreturn.Checkwithyourfinancialinstitutionto(1)makesureitwillacceptDirectDeposit,(2)obtainthecorrectRoutingTransitNumber (RTN) and account number, and (3) if applicable,verifythatyourfinancialinstitutionwillallowajointrefundtobedepositedintoanindividualaccount.Direct Deposit requests associated with a foreign bankaccount are classified as International ACH Transactions(IAT). IfyourDirectDeposit is forwardedor transferred toa bank account in a foreign country, it will be returned toTreasury. If this occurs, your refundwill be converted to acheckandmailedtotheaddressonyourtaxreturn.Contactyourfinancialinstitutionforquestionsregardingthestatusofyouraccount.a. RTN. Enterthenine-digitRTN.TheRTNisusuallyfoundbetween the symbols |: and |: on the bottomof your check.Thefirsttwodigitsmustbe01through12or21through32.

b. Account Number. Enteryourfinancialinstitutionaccountnumberup to17characters (bothnumbersand letters).TheaccountnumberisusuallyfoundimmediatelytotherightoftheRTNon thebottomofyour check. Includehyphensbutomit spaces and special symbols.Donot include the checknumber.c. Type of Account. Checktheboxforcheckingorsavings.When You Are Finished Sign Your Return: Eachspousemustsignajointreturn.Ifthe tax preparer is someone other than the taxpayer, he orshemustincludethenameandaddressofthefirmheorsherepresentsandpreparertaxidentificationorfederalemployeridentificationnumber.ChecktheboxtoindicateifTreasurymaydiscussyourreturnwithyourpreparer. Signing a child’s return: Ifareturnispreparedforachildwho is too young to sign it, a parent or guardian shouldsign the child’s name, then add “by (your name) parent (orguardian)forminorchild.”Attachments: Include all your credit claims and requiredMichiganandfederalschedules(seeTable3onpage59).If you owe tax: Payments can be made using Michigan’se-Payments service by direct debit (e-Check) from yourchecking or saving account, or by using a credit or debitcard. Visit www.michigan.gov/iit to make your paymentelectronically.Payments can also be mailed. Make your check payableto “State of Michigan.” Print the last four digits of your Social Security number and“2019 income tax”onthefrontofyourcheck.Ifpayingonbehalfofanothertaxpayer,writethe filer’s name and the last four digits of the filer’sSocialSecuritynumberonthecheck.Encloseyourpaymentbutdonotstapleittothereturn.Thefiling deadline to receive a refundfortaxyear2019isApril15,2024.

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Line-by-Line Instructions for Additions and Subtractions (Schedule 1) Nonresidents,andpart-yearresidents,completeScheduleNR (seepage49)beforeproceeding.Ifyouhaveincomeorlossesattributabletootherstates,youmust include all relevant federal schedules and supportingstatements (see page 59). Include Schedule K-1s whichsupport your federal Schedules B, D, E and 4797. The type, source and location of the income or loss must be identified. For assistance conveying this information toTreasury, refer to the “Business,Rental&RoyaltyActivityWorksheet” and the instructions available on Treasury’sWeb site. If you do not include the federal schedules andsupporting statements, processing of your return may bedelayedoryourcredit/subtractionmaybedenied.Additions to IncomeLine 1: Residents enter nonbusiness gross interest,dividends, and income from obligations or securities ofstates and their political subdivisions other thanMichigan.Residents and nonresidents report non-Michigan municipalbusiness income from a partnership, S corporation,estate, or trust with Michigan business activity. Businessincome subject to apportionment must be included on the Michigan Schedule of Apportionment (MI-1040H). Youmay reduce this income by related expenses not allowedas a deductionbySection265(a)(1) of the InternalRevenue Code(IRC).Line 2: Enter the deduction taken for self-employment tax on your federal return and for other taxes on or measuredby income, such as your share of city income tax paid bypartnershipsorScorporations,oryourshareofthetaxespaidbyanestateortrust.Line 3: Use Michigan Adjustments of Capital Gains and Losses (MI-1040D) and related Michigan Sales and Other Dispositions of Capital Assets (MI-8949) only if you havecapital gains or losses attributable to: (1) an election touse Section 271 treatment for property acquired before October 1, 1967; (2) the sale or exchange ofU.S. obligationswhichcannotbetaxedbyMichigan;or(3)thesaleorexchangeofpropertylocatedinotherstates.IfyoureportedgainsonU.S.Form4797 onpropertyacquiredbeforeOctober 1, 1967, or located in other states, adjust thegainontheMichigan Adjustments of Gains and Losses From Sales of Business Property (MI-4797).Enter gains from theMichigan column ofMI-1040D, line 12, andMI-4797,line18b.Instructionsarewitheachform.Line 4: Enter losses from a business or property located inanotherstatewhichyouownasasoleproprietor,apartnerinapartnership,ashareholderinanScorporation,orasamemberofapass-throughentity.IfyourbusinessistaxedbybothMichiganandanotherstate,the loss must be apportioned. Youmust include aMichigan Schedule of Apportionment(MI-1040H).Ifyouhaveafederalexcessbusinesslosslimitation,youmustcompleteFormMI-461.FollowinstructionsprovidedonFormMI-461todetermineifanyamountistobeincludedhere.Line 5: Enter the net loss from the federal column of yourMI-1040D,line13,orMI-4797,line18basapositivenumber.Line 6: Entergross expenses from theproductionofoil andgas or extraction of nonferrous metallic minerals subject

toMichigan severance tax to the extent deducted fromAGI.Subtracttherelatedgrossincomeonline19.Line 7: Residents, enter the amount of the federal NOLdeduction to the extent included in AGI. Nonresidents andpart-yearresidentsseeinstructionsforScheduleNR,line11.Line 8:Enterthetotalofthefollowing(includeanadditional scheduleifnecessary):• Add, to the extent not included in AGI, the amount of

money withdrawn in the tax year from a MichiganEducationSavingsProgram(MESP)account,includingtheMichigan 529 Advisor Plan (MAP), or a MichiganAchieving a Better Life Experience Program (ABLE)account, if thewithdrawalwasnot aqualifiedwithdrawalas provided in the MESP or ABLE Acts. You may firstexcludeanyamountthatrepresentsareturnofcontributionsforwhichnodeductionwasclaimedinanypriortaxyear.

• Refund received fromaMichiganEducationTrust (MET)contract. If you deducted the cost of a MET contract inprevious years and received a refund from MET during2019because theMETcontractwas terminated, enter thesmallerof:(1)therefundyoureceivedor (2)theamountofthe originalMETcontract price including feeswhichyoudeductedinpreviousyears.

NOTE: Michigan treatment of bonus depreciation conformswith federal law.Adjustments for bonus depreciation are notrequired.Subtractions From IncomeNOTE: Nonresidents and part-year residents, subtract onlyincomeattributabletoMichigan(ScheduleNR,columnB)thatisnotincludedonline13.Line 10: Enter income from U.S. government obligations(e.g.,SeriesEEbonds,Treasurynotes),includingincomefromU.S. government obligations received through a partnership,S corporation, or other pass-through entity. This subtractionmustbereducedbyrelatedexpensesusedtoarriveatAGI.Investment companies that invest in U.S. obligations arepermittedtopassthetax-freeexemptiontotheirshareholders.If income fromU.S. government obligations exceeds$5,000,include a copy of your U.S. Schedule B and a supportingstatement listing the amounts received, the source, and theissuingagency.CapitalgainsfromthesaleofU.S.governmentobligationsmustbeadjustedonyourMI-1040D.Line 11: Include military retirement benefits dueto service in the U.S. Armed Forces or MichiganNational Guard or taxable Tier 1 and Tier 2 railroadretirement benefits here and on Schedule W, Table 2. Other qualifying public or private retirement benefitsmust be reported on the Michigan Pension Schedule (Form4884)andSchedule1,line24.Line 12: Enter the gains from the federal column of yourMI-1040D,line12,andMI-4797,line18b.SeeinstructionsforSchedule1,line3.Line 13: Income Attributable to Another State. Nonresidents and part-year residents, complete ScheduleNR.Seeinstructionsonpage50.Includefederalschedules.

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MichiganresidentscannotsubtractsalariesandwagesorothercompensationearnedoutsideMichigan.However,theymaybeentitledtoataxcreditforincometaximposedbygovernmentunitsoutsideMichigan(seepage10).Residents may subtract, to the extent included in AGI:• Netbusinessincomeearnedinotherstates,and• Net rents and royalties from real property or tangible

personalpropertylocatedorusedinanotherstate.Business income that is taxedbyMichiganandanother statemustbeapportioned,includinginterest,dividendsandcapitalgains.YoumustincludeFormMI-1040H.IncomereportedontheMI-4797andcarriedtotheMI-1040Disbusinessincome,potentiallysubjecttoapportionment.Capital gains from the sale of real property or tangiblepersonal property located outside of Michigan must beadjustedontheMI-1040D.Ifyouhaveafederalexcessbusinesslosslimitation,youmustcompleteFormMI-461.FollowinstructionsprovidedonFormMI-461todetermineifanyamountistobeincludedhere.Line 14: Compensation received for active duty in theU.S.ArmedForcesincludedinAGIshouldbeenteredhereandonScheduleW,Table1. EnteronlythetaxableportionofSocialSecurityandMilitarypay includedonyourU.S.Form1040.DonotincludetotalSocialSecuritybenefitsoranyTier1andTier2railroadretirementbenefits.NOTE: CompensationfromtheU.S.PublicHealthService,contractedemployeepayandcivilianpayarenotconsideredmilitarypay.Line 15: Renaissance Zone deduction.Tobe eligible youmustmeetallthefollowingrequirements:• BeapermanentresidentofaRenaissanceZonedesignated

priortoJanuary1,2012,foratleast183consecutivedays• Beapprovedbyyourlocalassessor’soffice• Not be delinquent for any State or local taxes abated by

theRenaissanceZoneAct• FileanMI-1040eachyear• Havegrossincomeof$1millionorless.Ifyouwerea full-year residentof aRenaissanceZone,youmay subtract all income earned or received. Unearnedincome, such as capital gains, may have to be prorated.If you lived in the Zone at least 183 consecutive daysduring 2019, subtract the portion of income earned whilea resident of the Zone. If you are a part-year resident ofa Zone, complete and include a Schedule NR with your MI-1040. (See “Note” on the bottom of the Schedule NRinstructions,page50.)CertainRenaissanceZonesbegantophaseout in2007.Thetaxexemptionisreducedinincrementsof25percentduringtheZone’sfinalthreeyearsofexistence.Ifyouarearesidentof aZone that isphasingout (checkwithyour localunitofgovernment),youmustreduceyourdeductionasfollows:• 25 percent for the tax year that is two years before the

finalyearofdesignationasaRenaissanceZone• 50 percent for the tax year immediately preceding the

finalyearofthedesignationasaRenaissanceZone• 75 percent for the tax year that is the final year of the

designationasaRenaissanceZone.

For additional information regarding qualifications for theRenaissance Zone deduction, contact your local assessor’soffice.Line 16: Subtract Michigan state and city income taxrefundsandhomesteadpropertytaxcreditrefundsthatwereincludedinAGI.Ifyoudidnotitemizeonyourfederalreturnfor taxyear2018,your2018refundsshouldnotbe includedinyourAGIandshouldnotbesubtractedhere.Note to farmers: Subtract (to the extent included inAGI) the amount that your state or city income tax refundand homestead property tax credit exceeds the businessportionofyourhomesteadpropertytaxcredit.Line 17: Michigan Education Savings Program (MESP). You may deduct, to the extent not deducted in calculatingAGI, the total of all contributions less qualifiedwithdrawalsand rollovers (compute the contributions, withdrawals androllovers separately for each account) made during 2019 bythe taxpayer in the tax year to accounts established throughthe MESP (529 direct-sold program), including the MI 529Advisor Plan (MAP). The deductionmay not exceed $5,000for a single returnor $10,000 for a joint returnper taxyear.Therearemany529savings/investmentprogramsnationwide,butMichiganonlyallowsataxdeductionforcontributionstotheMichigan529programs:MESP,MAPandMET.Line 18: Michigan Education Trust (MET). You maydeductthefollowing:• IfyoupurchasedaMET529prepaidtuitioncontractduring

2019,youmaydeductthetotalcontractprice(includingtheprocessingfee).

• If you made a charitable contribution to the METCharitableTuitionProgramduring2019,youmaydeductthetotalcontributionamount.Youshouldhavereceivedareceipt fromMET to confirm the amount.All charitabledonationswillgotowardprovidingscholarshipstoformerfostercarestudentsattendingMichigancolleges.

• If you purchased a MET payroll deduction, monthlypurchase or pay-as-you-go contract, youmay deduct theamount paid on that contract during 2019 (not includingfees for late payments or insufficient funds). You willreceive an annual statement from MET specifying thisamount.

• If youhave terminatedaMETcontract, youmaydeducttheamountincludedinAGIasincometothepurchaser.

Line 19: Subtract the gross income subject to Michiganseverance tax from theMichigan production of oil and gasor extraction of nonferrous metallic minerals to the extentincluded in AGI. Add back the related expenses on line 6.Includecopiesofapplicablefederalschedules.Line 20: Tax Agreement Tribes: A “Resident TribalMember” (Member must be on the list submitted by theirTribe to the State of Michigan) of a federally recognizedIndiantribethathasanactivetaxagreementwiththeStateofMichiganmaysubtractcertainincomethatisincludedinhisorherAGIidentifiedonline10oftheMI-1040.Suchexemptincome may include income derived from wages, interest,and pension income. For a list of agreement tribes, go to www.michigan.gov/taxes and select “Individual IncomeTax.” Under Special Filing Situations, select “TaxInformation forNativeAmericans.”A list of tribes’ nameswill be available; click to access the tax agreement and

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proceed to Section IV. Non-Tax Agreement Tribes: Ifyour tribe is not listed, your tribe does not have an activetax agreement with Michigan. Non-agreement members,seeRevenue Administrative Bulletin 1988-47 for guidelinesin determining exempt income that may be subtracted on line20.NOTE: MichiganincomeearnedwhilelivingoutsideofyourAgreementArea(seeyourtribe’sagreementforadescriptionof your Agreement Area) or Indian Country (as definedunder18U.S.C.1151forNon-AgreementTribes)maynotbesubtractedfromMichiganAGI.Line 21: Miscellaneous subtractions only include:• Any portion of a qualified withdrawal from an MESP

account, including the MAP, or ABLE account to theextentincludedinfederalAGI.NOTE:Anyamountsnotincluded inAGIor thatarealreadydeductedon theU.S.Form 1040 to arrive at AGI do not qualify for thissubtraction.

• Benefits from a discriminatory self-insured medicalexpense reimbursement plan, to the extent thesereimbursementsareincludedinAGI.

• Losses from the disposal of property reported in theMichigan column of MI-1040D, line 13, or MI-4797, line18b.

• Amount used to determine the credit for elderly or totallyandpermanentlydisabledfromU.S.Form 1040 Schedule R, line19. Includeacopy.

• Holocaustvictimpayments.• Ordinary and necessary expenses not deducted in

determiningAGIandforcarryingoutatradeorbusinessasalicensedmarihuanaestablishmentundertheMichiganRegulationandTaxationofMarihuanaAct.Onlysubtractexpenses that would have been deductible had section280EoftheInternalRevenueCodenotbeenineffect.

Miscellaneous subtractions do not include the following (this is not an all-inclusive list):• Retirementandpensionbenefits.SeeForm4884• ItemizeddeductionsfromU.S.Schedule A• Sick pay (except railroad sick pay included in AGI),

disabilitybenefits,andwagecontinuationbenefitspaidtoyoubyyouremployerorbyaninsurancecompanyundercontractwithyouremployer

• Unemployment benefits included inAGI, except railroadunemploymentbenefits

• Contributions tonationalorMichiganpolitical partiesorcandidates

• Proceeds and prizeswon in State ofMichigan regulatedbingo,raffle,orcharitygames

• DistributionsfromadeferredcompensationplanreceivedwhilearesidentofMichigan

• Lotterywinnings.(Exception:installmentpaymentsfromprizes won on or before December 30, 1988, may besubtracted.) Include installment gross winnings asreported on your FormW-2G, box 1, and enter on yourScheduleW,Table1.

• AdjustmentsforbonusdepreciationnotincludedinAGI.

Lines 22C and 22F: Benefits From Employment with a Governmental Agency Not Covered by the Federal Social Security Act (SSA). SSA exempt employment is not covered by the federalSSA, which means the worker did not pay Social Securitytaxes and is not eligible for Social Security benefits basedon that employment. Almost all employment is covered bythe federalSSA.Themost common instancesof retirementand pension benefits from employment that is not coveredby Social Security are police and firefighter retirees, somefederal retirees covered under the Civil ServiceRetirementSystemandhiredpriorto1984,andasmallnumberofotherstate and local government retirees. Federal retirees hiredsince 1984 and those covered by the Federal Employees’RetirementSystemarecoveredundertheSSA.A recipient who qualifies under both of the followingconditions is entitled to a greater retirement or pensiondeductionorMichiganStandardDeduction.• BornbetweenJanuary1,1946andJanuary1,1958,or is

bornafterDecember31,1952andretiredasofJanuary1,2013and

• Receives,orwhosespousereceives,retirementorpensionbenefits from employment with a governmental agencythatwasnotcoveredbythefederalSSA.

Answerthequestionsbelowtodetermineifyoushouldcheckboxes22Cand/or22F.Line 22C:1. WastheolderofthefilerorspousebornbetweenJanuary1,

1946andJanuary1,1958anddidtheyreachage62?Yes: Continuetoquestion4.No: Continuetoquestion2.2. Didthefilerreceiveretirementorpensionbenefitsfroma

deceased spouse born between January 1, 1946 andDecember31,1952?

Yes: Continuetoquestion4.No: Continuetoquestion3.3. DidthefilerretireasofJanuary1,2013? Yes: Continuetoquestion4.No: Stop.Youarenoteligibletocheckbox22C.4. DidthefilerreceiveretirementbenefitsfromSSAexemptemployment?

Yes: Checkbox22C.No: Continuetoquestion5.5. DidthefilerreceiveretirementbenefitsfromSSAexemptemploymentasasurvivingspouse?

Yes: Checkbox22C.No: Stop.Youarenoteligibletocheckbox22C.Line 22F:1. WastheolderofthefilerorspousebornbetweenJanuary1,

1946andJanuary1,1958anddidtheyreachage62? Yes: Continuetoquestion4.No: Continuetoquestion2.2. Didthespousereceiveretirementorpensionbenefitsfrom

a deceased spouse born between January 1, 1946 andDecember31,1952?

Yes: Continuetoquestion4.No: Continuetoquestion3.

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3. DidthespouseretireasofJanuary1,2013?Yes: Continuetoquestion4.No: Stop.Youarenoteligibletocheckbox22F.4. Did the spouse receive retirement benefits from SSA

exemptemployment?Yes: Checkbox22F.No: Continuetoquestion5.5. Did the spouse receive retirement benefits from SSAexemptemploymentasasurvivingspouse?

Yes: Checkbox22F.No: Stop.Youarenoteligibletocheckbox22F.Line 23: Michigan Standard Deduction.Iftheolderofyouor your spouse (if married filing jointly) was born duringtheperiodJanuary1,1946throughDecember31,1952,andreached the ageof 67onor beforeDecember31, 2019, youare eligible for a deduction against all income and will nolongerdeductretirementandpensionbenefits.Thedeductionis $20,000 for a return filed as single or married filingseparately, or $40,000 for amarried filing jointly return. Ifyoucheckedeitherbox22Cor22Fyourstandarddeductionisincreasedby$15,000.Ifyoucheckedbothboxes22Cand22Fyourstandarddeductionisincreasedby$30,000.Thestandarddeductionisreducedbyanyamountsreportedonline11andanymilitarypayincludedonline14.Inmostcases,taxpayerswhoareeligibletocompleteline23shouldnotcompletelines24or25.However,ifataxpayeristhe unremarried surviving spouse of a decedent born priorto 1946who also died after reaching age 65, check the boxbelow line 25 to claim theMichigan standard deduction online23andadeductionfor investmentincomeonline25 (ifapplicable).

Line 24: Qualifying retirement and pension benefitsincluded in your AGI may be subtracted from income.Retirement and pension benefits are taxed differentlydependingon theageof the recipient.See“WhichBenefitsareTaxable”.You must include Form 4884. If you were born duringthe period January 1, 1946 through December 31, 1952, seeline23.Line 25: Senior citizens born prior to 1946 (or theunremarried surviving spouse of a decedent born prior to1946 who also died after reaching age 65) may subtractinterest, dividends, and capital gains included inAGI. Thissubtraction is limited to amaximumof $11,771 on a singlereturnor$23,542onajointreturn.Themaximumisreducedbyanydeductionfor:• Military (includingMichiganNationalGuard) retirement

benefitsfromline11• Railroadretirementbenefitsfromline11• Public andprivate retirement andpension benefits from

line24• Amount used for the federal credit for the elderly and

totallyandpermanentlydisabledfromline21.Forfurtherassistance,gotowww.michigan.gov/incometax.Line 27: 2019 Michigan NOL Deduction. Entertheamountcalculated on Michigan Net Operating Loss Deduction (Form5674).

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General Information - Pension Schedule (Form 4884)What are Retirement and Pension BenefitsUnder Michigan law, qualifying retirement and pensionbenefits include most payments that are reported on a 1099-R for federal tax purposes. This includes definedbenefit pensions, IRA distributions, and most paymentsfrom defined contribution plans. Payments received beforethe recipient could retireunder theprovisionsof theplanorbenefits from 401(k), 457, or 403(b) plans attributable toemployeecontributionsalonearenot retirementandpensionbenefits underMichigan law, are taxable, and are subject towithholding.Qualifying benefits include distributions from the following sources:• Pensionplansthatdefineeligibilityforretirementandset

contributionandbenefitamountsinadvance• Qualifiedretirementplansfortheself-employed• Retirement distributions from a 401(k) or 403(b) plan

attributable to employer contributions or attributable toemployeecontributions that result in additional employercontributions(e.g.,matchingcontributions)

• IRAdistributionsreceivedafterage59½ordescribedbySection72(t)(2)(A)(iv)oftheIRC(seriesofequalperiodicpaymentsmadeforlife)

• Benefitsfromanyofthepreviousplansreceivedduetoadisability, or as a surviving spouse if the decedentqualifiedfor thesubtractionat thetimeofdeathandwasborn prior to January 1, 1953. For exceptions see “Retirement Benefits from a Deceased Spouse” onpage18.

• Benefitspaid toa senior citizen (age65orolder) fromaretirementannuitypolicythatarepaidforlife(asopposedtoaspecifiednumberofyears)

• Foreign retirement and pension benefits that meetMichigan’squalificationsmayalsobeeligible.

Qualifying public benefits include distributions from the following sources:• TheStateofMichigan• Michigan local governmental units (e.g., Michigan

counties,cities,andschooldistricts)• Federalcivilservice.Retirement and pension benefits that are transferred fromoneplantoanother(rolledover)continuetobe treatedas iftheyremainedintheoriginalplan.For public and private retirement or pension benefits, you may not subtract (do not include on Form 4884):• Amountsreceivedfromadeferredcompensationplanthat

letstheemployeesettheamounttobeputasideanddoesnotsetretirementageorrequirementsforyearsofservice.These plans include, but are not limited to, plans underSections401(k),457,and403(b)oftheIRC

• Amounts received before the recipient could retire undertheplanprovisions,includingamountspaidonseparation,withdrawal,ordiscontinuanceoftheplan

• Amounts received as early retirement incentives, unlesstheincentiveswerepaidfromapensiontrust.

Which Benefits are TaxableRetirement and pension benefits are taxed differentlydependingontheageoftherecipient.Marriedcouplesfilinga joint returnshouldcompleteForm4884basedon theyearofbirthoftheolderspouse.MilitaryandMichiganNationalGuard pensions, railroad retirement benefits and SocialSecuritybenefitsareexemptfromtaxandshouldbereportedontheSchedule1,line11orline14.Who May Claim a Pension Subtraction Tier 1• Recipients born before 1946 maysubtractallqualifyingretirement and pension benefits received from federal orMichiganpublicsources,andmaysubtractqualifyingprivateretirement and pension benefits up to $52,808 if single ormarried filingseparate,or$105,615 ifmarried filinga jointreturn.Ifyourpublicretirementbenefitsaregreaterthanthemaximumamount,youarenotentitledtoclaimanadditionalsubtractionforprivatepensions.NOTE: In addition to the public retirement benefits listedabove, the private pension limits are also reduced by thefollowingfromSchedule1,line11:

• MilitaryretirementfromtheU.S.ArmedForces• RetirementfromtheMichiganNationalGuard• Railroadretirement.

Tier 2• Recipients born during the period January 1, 1946

through December 31, 1952,donotcompleteForm4884.SeeSchedule1,line23.

Tier 3• Recipients born on or after January 1, 1953 but before

January 2, 1958 who have reached age 62 and receive retirement benefits from employment exempt from Social Security may deduct up to $15,000 in qualifyingretirementandpensionbenefits. Ifbothspousesona jointreturn receive Social Security exempt retirement benefits,the maximum deduction increases to $30,000. SeeForm4884,line29instructionsformoreinformation.

• Recipients born after 1952, received retirement benefits from SSA exempt employment, and were retired as of January 1, 2013 may deduct up to $35,000 in qualifyingretirement andpensionbenefits if singleormarried filingseparatelyor$55,000ifmarriedfilingajointreturn.Ifbothspousesonajointreturnqualify, themaximumdeductionincreasesto$70,000.

• All other recipients born after 1952, all retirementandpensionbenefitsare taxableandyouarenotentitled toapensionsubtraction.

Forhelpcalculatingtheretirementandpensionsubtraction,see“Which Section of Form 4884 Should I Complete?”onpage19.

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Retirement Benefits from a Deceased SpouseCalculatetheamountofdeductibleretirementbenefitsreceivedasasurvivorofadeceasedspousebasedonthebirthyearofthe deceased spouse and the filing status of the survivingspouse.IfthefilerisinTier2andhasreachedtheageof67,the deceased spouse’s benefits cannot be claimed on Form4884andthetaxpayeriseligiblefortheStandardDeduction. Retirement benefits received as a survivor generally have adistributioncodeof4onthefederalForm1099-R.The1099-RreportsretirementbenefitstotheInternalRevenueServiceanditissentbythepensionadministratorpayingthebenefits.Example 1:Amarriedfilerwhoreceivesretirementbenefitsasthesurvivingspouseofadecedentbornin1942(Tier1)wouldbeabletosubtractallpublicretirementbenefitsreceivedfromthedeceasedspouseandprivate retirementbenefits receivedupto$105,615,reducedbyanypublicbenefitsreceivedfromthedeceasedspouse.

Generally, any retirement benefits deducted as a survivorreduce the amount of other retirement benefits thatmay bededucted.Example 2:A single filer who receives retirement benefitsas the surviving spouseof adecedentborn in1952 (Tier2)wouldbeabletosubtractupto$20,000inqualifiedretirementbenefitsreceivedfromthedeceasedspouse.NOTE: Filers born after 1952 (Tier 3) receiving survivorbenefits from a deceased spouse born in Tier 1 completeSection B of Form 4884. Filers born after 1952 (Tier 3)receiving survivor benefits from a deceased spouse born inTier2completeSectionCofForm4884.Filersbornafter1952(Tier3) and receivingSSAexempt survivorbenefits fromadeceasedspouseinTier3complete“Which Section of Form 4884 Should I Complete?”onpage19.

Filing Status Birth Year Retirement BenefitsTier

Retirement Benefits Deduction Limits

Single/Separate Before1946 Tier1 Allpublicplusprivatebenefitsupto$52,808combined

Single/Separate 1946through1952 Tier2 NoretirementdeductiononForm4884.StandardDeductionon

Schedule1,line23

Single/Separate After1952 Tier3 † ‡Nodeduction

*Joint Before1946 Tier1 Allpublicplusprivatebenefitsupto$105,615combined

*Joint 1946through1952 Tier2 NoretirementdeductiononForm4884.StandardDeductionon

Schedule1,line23

*Joint After1952 Tier3 †‡Nodeduction

* On a joint return, determine the eligibility for deducting retirement benefits using the age of the older spouse.† Taxpayers in Tier 3 who receive pension benefits from employment with governmental agencies not covered

by the Social Security Act may be eligible for a pension deduction. See instructions for Form 4884, line 28 and line 29.

‡ Taxpayers in Tier 3 who receive benefits from a deceased spouse, see the NOTE in “Retirement Benefits from a Deceased Spouse” above.

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Visitwww.michigan.gov/incometax forhelpcalculatingtheretirementandpensionsubtraction.Before completing Form 4884, refer to “Which Section of Form 4884 Should I Complete?”NOTE: For purposes of this form, single limits apply totaxpayerswhoaremarriedfilingseparately.Lines not listed are explained on the form.Lines 1, 2, and 3: Enter your name(s) and Social Securitynumber(s). If you aremarried filing separate returns, enterbothSocialSecuritynumbers,butdonot enteryourspouse’sname.Lines 4 and 5:Enteryouryear(s)ofbirth.Ifyouaremarriedandfilingseparately,donotenteryourspouse’syearofbirth.Line 6: Checktheboxifbothcriteriaaremet:• You and your spouse (if filing a joint return)were born

after1952. • Youoryourspouse(iffilingajointreturn)wereretiredas

of January 1, 2013 and also received retirement benefitsfromSSAexemptemployment.

Line 7: Enter deceased spouse’s name, Social Securitynumberandyearofbirth.Ifyouarefilingyourfinaljointtaxreturnbecauseyourspousediedduring the taxyear,donotcompleteline7orcheckbox8B.NOTE: When completing Form 4884, surviving spousemeansthedeceasedspousediedpriortothecurrenttaxyear(e.g., when filing a 2019 return the spouse died in 2007).Deceased spouse benefits do not include benefits from aspousewhodiedin2019.Line 8:Ifyouhavemorethantenqualifyingentries,continuethose entries on the 2019 Michigan Pension Continuation Schedule(Form4973).Line 8B: Foreachqualifyingretirementandpensionbenefitattributable toadeceasedspouseputan“X” incolumn8B.Seeinstructionsforline7formoreinformationondeceasedspousebenefits.Line 8C: If an individual has multiple retirement andpensionbenefitsfromthesamePayerFEINanddistributioncode,combinethoseamountsonthesameline.Line 8D:Listthedistributioncodefrombox7ofthefederalForm1099-R.Line 8F: Include the taxableamountof retirementorpensionreported in federalAGI.Use theseamountswhencompletingtheapplicablesectioninPart3.Ifyouareapart-yearresidentonlyuse theportionfromtheMichiganScheduleNR, line10columnB.Line 9: If you or your spouse reported any retirement andpensionbenefits fromservice in theU.S.ArmedForces, theMichiganNationalGuard or any taxable railroad retirementbenefits reported on Schedule 1, line 11, these amountsshould be subtracted from the allowable private pensiondeductionlimits.Forpurposesofthisline,singlelimitsapplyto taxpayers who are married filing separately. Amountsdeducted on Schedule 1, line 11, are not deducted againon Form 4884, and are only used to reduce the allowablededuction for private retirement and pension benefits. For

example, if a joint filer born in 1945 received $30,000 inretirement benefits from service in the U.S. Armed Forcesthe allowable private deduction limit reported on line 9 wouldbe$105,615-$30,000=$75,615.Line 13: If you checked either box 22C or 22F fromSchedule1,yourmaximumis increasedby$15,000. Ifyoucheckedbothboxes22Cand22Fyourmaximumisincreasedby$30,000.

Which Section of Form 4884 Should I Complete?

Using the information from line 8, complete Section A, Section B, Section C or Section D. To determine which section of the form to complete, answer the following questions.1. Were retirement or pension benefits received bya filer or spouse (if married filing jointly) bornpriortoJanuary1,1953,orweresurvivingspousebenefits received for a deceased spouse who wasborn prior to January 1, 1953 and died prior toJanuary1,2019?

Yes: Continuetoquestion2. No: Continuetoquestion5.2. Was theolderof fileror spouse (ifmarried filingjointly) born during the period January 1, 1946throughDecember31,1952?

Yes: DonotfileForm4884.UseSchedule1,line23(seeinstructions,page15).

No: Continuetoquestion3.3. Was theolderof filer or spouse (ifmarried filingjointly)bornpriortoJanuary1,1946?

Yes: CompleteSectionAofForm4884. No: Continuetoquestion4.4. Is filer or spouse (if married filing jointly)receiving benefits from a deceased spouse whowasbornpriortoJanuary1,1946anddiedpriortoJanuary1,2019?

Yes: CompleteSectionBofForm4884. No: CompleteSectionCofForm4884.5. Were benefits from SSA exempt employmentreceived by a filer or spouse (if married filingjointly)whowasbornafter1952and retiredasofJanuary1,2013?

Yes: CompleteSectionCofForm4884. No: Continuetoquestion6.6.Were benefits from SSA exempt employmentreceived by a filer or spouse (if married filingjointly),andeitherfilerorspousehasreachedage62?

Yes: CompleteSectionDofForm4884. No: You are not eligible for a retirement or

pension benefits subtraction. Do not fileForm4884.

Line-by-Line Instructions for Pension Schedule (Form 4884)

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Line 16: Carry thisamount toSchedule1, line24.DonotcompleteSectionB,SectionCorSectionD.Line 17: If you or your spouse received and reportedany retirement and pension benefits from service inthe U.S. Armed Forces or Michigan National Guard,or any taxable railroad retirement benefits reported onSchedule1,line11,theseamountsshouldbesubtractedfromtheallowableprivatepensiondeductionlimithere.Amountsdeducted on Schedule 1, line 11, are not deducted againon Form 4884 and are only used to reduce the allowabledeductionforprivateretirementandpensionbenefits.Line 23: Donot include benefits received from a deceasedspouse(whodiedpriorto2019).Line 24: If youwerebornonor after January1, 1953butbefore January 2, 1958 and checked box 22C or 22F onSchedule1, enter$15,000. If both spouseson a joint returncheckedboxes22Cand22FonSchedule1,enter$30,000.If you were born after 1952, were retired as of January 1,2013 and checked box 22C or 22F on Schedule 1, enter$35,000 if filing single or married filing separately, or$55,000ifmarriedfilingajointreturn.Ifbothspousesonajointreturncheckedboxes22Cand22FonSchedule1,enter$70,000.Line 27: Carry thisamount toSchedule1, line24.DonotcompleteSectionA,SectionCorSectionD.Line 28: Taxpayers born after January 1, 1952, that arereceiving benefits from a deceased spouse who was bornduring the period January 1, 1946 through December 31,1952 should use Section C to calculate the deduction forretirementandpensionbenefits.If youcheckedeitherbox22Cor22F fromSchedule1, themaximumisincreasedby$15,000.Ifyoucheckedbothboxes22Cand22Fthemaximumisincreasedby$30,000.Taxpayers born after 1952, that were retired as of January 1, 2013 and received retirement benefits fromSSA exempt employment should use Section C to calculatethe deduction for retirement and pension benefits. Thesetaxpayersmaydeductupto$35,000inqualifyingretirementandpensionbenefits ifsingleormarriedfilingseparatelyor$55,000ifmarriedfilinga joint return. Ifbothspousesonajoint return qualify, the maximum deduction increases to$70,000.If you have taxable railroad retirement benefits orqualifying retirement and pension benefits from servicein theU.S.ArmedForces orMichiganNationalGuard thatwas deducted on Schedule 1, line 11, use Worksheet 2 todetermineyourallowablesubtraction.Carry this amount to Schedule 1, line 24.Do not completeSectionA,SectionB,orSectionD.Line 29: If you checked box 22C or 22F on Schedule 1and the older of you or your spouse was born on or after January 1, 1953 but before January 2, 1958, enter allqualifying retirement and pension benefits you received,

up to $15,000. If you are receiving benefits as a survivingspouse, do not use your deceased spouse’s year of birth. Ifboth boxes 22C and 22F on Schedule 1were checked on ajointreturn,themaximumdeductionis$30,000.Recipients who deduct taxable railroad retirement benefitsor military retirement benefits due to service in the U.S.Armed Forces orMichigan National Guard on Schedule 1,line 11may have lower deduction limits on this line if theSchedule1, line11 totalsmore than$37,808.Foradditionalinformation and to determine your allowable subtraction,refer to the “Worksheet for Filers with Taxable RailroadRetirement Benefits or Qualifying Retirement and PensionBenefitsfromServiceintheU.S.ArmedForcesorMichiganNational Guard and Completing Section D of Form 4884”availableonTreasury’sWebsite.Carry this amount to Schedule 1, line 24. Do not completeSectionA,SectionB,orSectionC.

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Scenario 1: Joint filer with the older spouse born prior to January 1, 1946 (Tier 1) with private and public retirement/pension benefits.JerryandBeverlyarefilingajointreturn.Jerrywasbornin1943andisreceivingapublicpensionof$40,000withadistributioncodeof7.Beverlywasbornin1946andisreceivingaprivatepensionof$70,000withadistributioncodeof7.

Step1: Aftercompleting lines1 through3,JerryandBeverlyenter1943online4and1946online5.

Step2: Theycompleterow1ofline8byenteringanXinPublicfor8A,thepayerFEINin8C, thedistributioncode7 in8D, thenameofthepayerin8Eand$40,000in8F...................................................... Line8F,Row1........................ $40,000Theycompleterow2ofline8byenteringanXinPrivatefor8A,thepayerFEINin8C,thedistributioncode7in8D,thenameofthepayerin8Eand$70,000in8F..................................................... Line8F,Row2......................... $70,000

Step3: JerryandBeverly refer to thequestionnaireonpage19 todecidewhichSectionofForm4884istobecompleted.Theyansweryesto question 1, no to question 2, yes to question 3 and completeSectionAofForm4884.

Step4: Theyenter$105,615online9astheyaremarriedfilingjointly....... Line9....................................... $105,615

Step5: They enter $40,000 on line 10, the total of their public pensionbenefits............................................................................................... Line10..................................... $40,000

Step6: Theysubtractline10fromline9andenter$65,615online11........ Line11.................................... $65,615

Step7: They enter $70,000 on line 12, the total of their private pensionbenefits............................................................................................... Line12..................................... $70,000

Step8: Theyleaveline13blankasitdoesnotapplytothem....................... Line13..................................... leaveblank

Step9: Theyenter$70,000online14,thetotaloflines12and13............... Line14..................................... $70,000

Step10: Theyenter$65,615,thesmalleroflines11or14.............................. Line15..................................... $65,615

Step11: Theyaddlines10and15,enter$105,615online16andcarrythis Line16...................................... $105,615amounttoSchedule1,line24................................................................... Schedule1,Line24................... $105,615

Form 4884 Various Scenarios

Worksheet 2 for Filers with Taxable Railroad Retirement Benefits or Qualifying Retirement and Pension Benefits from Service in the U.S. Armed Forces or Michigan National Guard and Completing Section C of Form 4884

1. Enter military retirement benefits due to service in the U.S. Armed Forces or Michigan National Guard and taxable railroad retirement benefits reported on Schedule 1, line 11. ......................... 1. 00

2. Enter public retirement and pension benefits reported on Form 4884, line 8. ............................... 2. 00

3. Add lines 1 and 2. .......................................................................................................................... 3. 00

4. Enter private retirement and pension benefits reported on Form 4884, line 8. ............................. 4. 00

5. Enter $52,808 if single or $105,615 if filing jointly. ........................................................................ 5. 00

6. Subtract line 3 from line 5. If less than zero, enter $0. ................................................................. 6. 00

7. Enter the smaller of line 4 or line 6. ............................................................................................... 7. 00

8. Add line 2 and line 7. ..................................................................................................................... 8. 009. Enter $20,000 if single or $40,000 if filing jointly. Higher limits apply if you checked Schedule 1,

box 22C or 22F (see line 11 below). .............................................................................................. 9. 0010. Enter the smaller of line 8 or line 9 here and on Form 4884, line 28. ............................................ 10. 00

Calculation for filers with benefits from employment exempt from the Social Security Act11. Enter $20,000 if single or $40,000 if filing jointly. .......................................................................... 11. 0012. If you checked box 22C or 22F on Schedule 1, enter $15,000 for each box checked. ................. 12. 0013. Add line 11 and line 12. This is your maximum deduction for line 9 of this Worksheet. ............... 13. 00

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Scenario 3: Filer and spouse both born in Tier 2 with the older spouse born in 1948 and receiving surviving benefits from a deceased spouse born in 1945 (Tier 1).William and Betty are Michigan residents and are filing a joint return. William, born in 1948, is receiving public pension benefits of $10,000 and wages from a part-time job. Betty, born in 1951, is receiving private pension benefits of $20,000. William’s deceased spouse, Johanna, was born in 1945 and died in 2015. William is receiving $7,500 in surviving spouse pension benefits from Johanna’s private pension.

Step 1: As the older of William and Betty was born in 1948 (age 71 in 2019), they do not complete Form 4884 and instead complete Schedule 1, lines 22 and 23 for the Michigan Standard Deduction. Once William reached the age of 67, William and Betty no longer qualify for a pension deduction. This includes benefits from an older deceased spouse. Instead, they qualify for the standard deduction against all income (pension, wages, interest, etc.) ................................................................................. Do not file Form 4884.

Scenario 2: Joint filers, with the older spouse born prior to January 1, 1946 (Tier 1) who died during the tax year with private pension benefits.Bob and Mary are filing a joint return. Bob, born in 1944, has a private pension of $55,000. Bob died on October 15, 2019. Bob received a 1099-R for $50,000 with a distribution code of 7 and Mary received a 1099-R for $5,000 with a distribution code of 4 for the remainder of Bob’s pension. Mary, born in 1952, is receiving a public pension of $70,000 with a distribution code of 7.

Step 1: After completing lines 1 through 3, Mary enters 1944 on line 4 and 1952 on line 5. Mary does not complete line 7 or check 8B because Bob died during the current tax year.

Step 2: Mary completes row 1 of line 8 by entering an X in Private for 8A, the payer FEIN in 8C, the distribution code 7 in 8D, the name of payer in 8E, and $50,000 in 8F. ......................................... Line 8F, Row 1. ........................ $50,000She completes row 2 of line 8 by entering an X in Private for 8A, the payer FEIN in 8C, the distribution code 4 in 8D, the name of payer in 8E, and $5,000 in 8F ......................................................... Line 8F, Row 2. ........................ $5,000She completes row 3 of line 8 by entering an X in Public for 8A, the payer FEIN in 8C, the distribution code 7 in 8D, the name of payer in 8E, and $70,000 in 8F ....................................................... Line 8F, Row 3. ........................ $70,000

Step 3: Mary refers to the questionnaire on page 19 to decide which Section of Form 4884 is to be completed. She answers yes to question 1, no to question 2, yes to question 3 and completes Section A of Form 4884.

Step 4: She enters $105,615 on line 9 as she is filing jointly ..................... Line 9. ....................................... $105,615Step 5: She enters $70,000, her public pension, on line 10. ....................... Line 10. ..................................... $70,000Step 6: She subtracts line 10 from line 9 and enters $35,615 on line 11. ... Line 11. ..................................... $35,615Step 7: She enters $55,000, the total private pension benefits, on line 12. Line 12. ..................................... $55,000

Step 8: Mary leaves line 13 blank as Bob is not considered a deceased spouse for purposes of this return; Mary is filing a joint return. .. Line 13. ..................................... leave blank

Step 9: Mary enters $55,000 on line 14, the total of lines 12 and 13. ........ Line 14. ..................................... $55,000Step 10: She enters $35,615, the smaller of lines 11 or 14. ........................... Line 15. ..................................... $35,615

Step 11: She adds lines 10 and 15, enters $105,615 on line 16 and carries this amount to Schedule 1, line 24. ................................................

Line 16. .....................................Schedule 1, Line 24. .................

$105,615$105,615

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Scenario 5: Joint filers born after 1952 (Tier 3) with retirement/pension benefits and receiving surviving benefits from a deceased spouse born in 1944 (Tier 1).HowardandGeorgiaarefilingajointreturn.Howard,bornin1953,isreceivingaprivatepensionof$40,000.Georgiawasbornin1955.Howard’sdeceasedspouse,Edith,wasbornin1944anddiedin2006.Howardisreceiving$30,000insurvivingspousepensionbenefitsfromEdith’sprivatepension.

Step1: After completing lines 1 through 3, Howard and Georgiaenter1953online4and1955online5.Howardisreceivingpension benefits from a deceased spouse so he thencompletesline7.HeentersEdith’sfullnameonline7a,herSocialSecuritynumberonline7b,and1944online7c.

Step2: As Howard and Georgia were both born in Tier 3 theirpensionbenefitsarenotdeductibleandshouldnotbe listedonline8ofForm4884.Theycomplete row1of line8byenteringanX inPrivatefor8A,anX in8B, thepayerFEINin8C, thedistributioncodein8D,thenameofpayerin8E,and$30,000in8F......... Line8F,Row1...................... $30,000

Step3: They refer to thequestionnaireonpage19 todecidewhichSection of Form 4884 is to be completed. They answeryes toquestion1,no toquestion2,no toquestion3,yes toquestion4andcompleteSectionBofForm4884.

Step4: Theyenter$105,615online17astheyarefilingjointly........ Line17................................... $105,615

Step5: They leave line 18 blank because they are not receivingpublicbenefitsfromEdith....................................................... Line18.................................... leaveblank

Step6: Theysubtractline18fromline17andenter$105,615online19..................................................................................... Line19.................................... $105,615

Step7: Theyenter$30,000,privatebenefitsreceivedfromHoward’sdeceasedspouse,Edith,online20.......................................... Line20.................................... $30,000

Step8: Theyenterthesmalleroflines19or20,$30,000,online21. Line21.................................... $30,000

Step9: HowardandGeorgiaaddlines18and21andenter$30,000online22.HowardandGeorgiaskiptoline26...................... Line22.................................... $30,000

Step10: SinceHowardandGeorgiaskippedlines23through25,theyenterzeroonline26........................................................ Line26.................................... $0

Step11: Theyaddlines22and26andenter$30,000online27and Line27.................................... $30,000Schedule1,line24................................................................... Schedule1,Line24................ $30,000

Scenario 4: Filer and spouse both born after December 31, 1952 (Tier 3).ScottandLisaarefilingajointreturn.Scott,bornin1954,isreceivingprivatepensionbenefitsof$30,000.Lisa,bornin1957,isreceivinganIRAdistribution(privatepension)of$20,000.

Step1: As both Scott and Lisawere born afterDecember 31, 1952and did not check box 22C or 22F on Schedule 1, they arenot entitled to apension subtraction.Donot completeForm4884.......................................................................................... DonotfileForm4884.

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Scenario 7: Single filer born on or after January 1, 1953 but before January 2, 1958 (Tier 3) with benefits from SSA exempt employment and who retired after January 1, 2013Leighisfilingassingle,wasbornin1953,andisreceivingpensionof$8,000fromSSAexemptemploymentandaprivatepensionof$10,000.Sheretiredin2014.

Step1: Aftercompletinglines1and2,Leighenters1953online4.Step2: Leigh completes row 1 of line 8 by entering an X in Public

for8A,thepayerFEINin8C,thedistributioncodein8D,thenameofthepayerin8Eand$8,000in8F. Line8F,Row1............................ $8,000Leigh completes row 2 of line8 by entering anX in Privatefor8A,thepayerFEINin8C,thedistributioncodein8D,thenameofthepayerin8Eand$10,000in8F...................................... Line8F,Row2............................ $10,000

Step3: Leigh refers to the questionnaire on page 19 to decide whichsection of Form 4884 is to be completed. She answers no toquestion1andskips toquestion5. Sheanswersnotoquestion5 because she did not retire on or before January 1, 2013. Sheanswersyestoquestion6andcompletesForm4884,SectionD.

Step4: Since Leigh is single, she enters $15,000,which is the lesser Line29........................................ $15,000of her total retirement and pension benefits ($18,000) or the Schedule1,Line22maximum allowable pension deduction ($15,000) on line 29 22A............................................. 1953andontheSchedule1,line24............................................................ 22B............................................. 66NOTE: It is important for taxpayerswith benefits fromSSA 22C............................................. Xexempt employment to check the box(es) on line 22 of the Schedule1,Line24.................... $15,000Schedule1.

Scenario 6: Joint filers born after 1952 (Tier 3) with retirement/pension benefits and receiving surviving benefits from a deceased spouse born in 1949 (Tier 2).MarkandNancyarefilingajointreturn.Mark,bornin1953,isreceivingaprivatepensionof$25,000.Nancywasbornin1953.Nancy’sdeceasedspouse,Eduardo,wasbornin1949anddiedin2008.Nancyisreceiving$35,000insurvivingspousepensionbenefitsfromEduardo’sprivatepension.Step1: After completing lines 1 through 3, Mark and Nancy enter

1953online4and1953online5.Nancyisreceivingpensionbenefitsfromadeceasedspousesoshethencompletesline7.SheentersEduardo’sfullnameonline7a,hisSocialSecuritynumberonline7b,and1949online7c.

Step2: AsMarkandNancywerebothborninTier3Mark’spensionis not deductible and should not be listed on line 8 of Form4884.Theycompleterow1ofline8byenteringanXinPrivatefor8A,anXin8B,thepayerFEINin8C,thedistributioncodein8D,thenameofpayerin8E,and$35,000in8F.......................... Line8F,Row1........................... $35,000

Step3: They refer to the questionnaire on page 19 to decide whichSectionofForm4884istobecompleted.Theyansweryestoquestion1,notoquestion2,notoquestion3,notoquestion4andcompleteSectionCofForm4884.

Step4: They are married filing jointly and enter the total of theirbenefits from line 8 of $35,000, since it is less than the Line28........................................ $35,000maximum of $40,000, on line 28 and on the MichiganSchedule1,line24..................................................................... Schedule1,Line24................... $35,000

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Scenario 9: Single filer born after 1952 (Tier 3), received retirement benefits from SSA exempt employment and was retired as of January 1, 2013. Mattisfilingassingle,wasbornin1960andretiredApril30,2012andisreceivingbenefitsfromSSAexemptemploymentof$12,000andaprivatepensionof$30,000.Step1: Aftercompletinglines1and2,Mattenters1960online4.

Step2: SinceMattwasborn after 1952,was retired asof January1,2013,andreceivedbenefitsfromSSAexemptemployment,hecheckstheboxonline6...................................................................... Line6.......................................... X

Step3: Mattcompletesrow1ofline8byenteringanXinPublicfor8A, the payer FEIN in 8C, the distribution code in 8D, thenameofthepayerin8Eand$12,000in8F. Line8F,Row1........................... $12,000

Matt completes row 2 of line 8 by entering an X in Privatefor8A,thepayerFEINin8C,thedistributioncodein8D,thenameofthepayerin8Eand$30,000in8F.................................. Line8F,Row2........................... $30,000

Step4: Matt refers to the questionnaire on page 19 to decide whichsectionofForm4884 is tobecompleted.Mattanswersno toquestion1andcontinuestoquestion5.Afteransweringyestoquestion5,MattcompletesSectionCofForm4884.

Step5: Since Matt is single, he enters $35,000, which is the lesser Line28........................................ $35,000of his total retirement and pension benefits ($42,000) or the Schedule1,Line22maximum allowable pension deduction ($35,000) on line 28

22A.............................................andontheSchedule1,line24.................................................... 196022B.............................................NOTE: It is important for taxpayerswithbenefits fromSSA 59

exempt employment to check the box(es) on line 22 of the 22C............................................. XSchedule1. Schedule1,Line24.................... $35,000

Scenario 8: Married filing separately with filer and spouse born on or after January 1, 1953 but before January 2, 1958 (Tier 3) with benefits from SSA exempt employment and who retired after January 1, 2013.JamesandPhyllisaremarriedfilingseparately.Jameswasbornin1956andisreceivingpensionof$8,000fromSSAexemptemployment.Jamesretiredin2015.Phylliswasbornin1957andisreceivingpensionof$10,000fromSSAexemptemployment.Phyllisretiredin2016.

Step1: As James is married filing separately, he completes lines 1and2, leaves the spouse’s name lineblank, and includes thespouse’sSocialSecuritynumberonline3.

Step2: Jamesenters1956online4andskipsline5.Step3: Hecompletes row1of line8byenteringanX inPublic for

8A, the payer FEIN in 8C, the distribution code in 8D, thenameofthepayerin8E,and$8,000in8F................................ Line8F,Row1......................... $8,000

Step4: Jamesrefers to thequestionnaireonpage19todecidewhichSection of Form 4884 is to be completed.He answers no toquestion1andskipstoquestion5.Heanswersnotoquestion5becausehedidnot retireonorbefore January1, 2013.Heanswersyes toquestion6andcompletesForm4884,SectionD.

Step5: Since James is married filing separately, he enters $8,000, Line29........................................ $8,000whichisthelesserofhistotalretirementandpensionbenefits Schedule1,Line22($8,000) or the maximum allowable pension deduction

22A.............................................($15,000)online29andontheSchedule1,line24.................. 195622B............................................. 63

NOTE: It is important for taxpayerswithbenefits fromSSA22C............................................. Xexempt employment to check the box(es) on line 22 of the

Schedule1 Schedule1,Line24.................... $8,000

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General Information - Homestead Property Tax Credit (MI-1040CR)The request for your Social Security number is authorizedunderUSCSection42.SocialSecuritynumbersareusedbyTreasurytoconductmatchesagainstbenefitincomeprovidedby the Social Security Administration and other sourcesto verify the accuracy of the home heating and propertytax credit claims filed for mandatory federal reportingrequirementsandtodeterfraudulentfilings.Who May Claim a Property Tax CreditYoumay claim a property tax credit if all of the followingapply:• YourhomesteadislocatedinMichigan• YouwereaMichiganresidentatleastsixmonthsof2019• You own your Michigan homestead and property taxes

were levied in 2019, or you paid rent under a rentalcontract.

Youcanhaveonlyonehomesteadatatime,andyoumustbetheoccupantaswellastheownerorrenter.Yourhomesteadcan be a rented apartment or a mobile home on a lot in amobile home park.A vacation home or income property isnot consideredyourhomestead.Yourhomesteadisinyourstateofdomicile.Domicileistheplacewhere youhaveyour permanent home. It is the placetowhichyouplan toreturnwheneveryougoaway.Collegestudents and others whose permanent homes are not inMichigan are not Michigan residents. Domicile continuesuntilyouestablishanewpermanenthome.Property tax credit claims may not be submitted onbehalf of minor children. Filers claimed as a dependenton someone else’s return see instructions for line 24 onpage32tocorrectlyreportsupportreceived.You may not claim a property tax credit if your total household resources are over $60,000. In addition, youmay not claim a property tax credit if your taxable valueexceeds $135,000 (excluding vacant farmland classified asagricultural).The computed credit is reducedby10percentfor every $1,000 (or part of $1,000) that total householdresources exceed $51,000. If filing a part-year return, youmustannualizetotalhouseholdresourcestodetermineiftheincomelimitationapplies.See“AnnualizingTotalHouseholdResources”onpage29.Which Form to FileMostfilersshouldusetheMI-1040CRinthisbooklet.Ifyouareblindandownyourhomestead,areintheactivemilitary,are an eligible veteran, or an eligible veteran’s survivingspouse, complete forms MI-1040CR and MI-1040CR-2(availableonTreasury’sWebsite.)Use the form that gives you a larger credit. If you are blind and rent your homestead, you cannot usetheMI-1040CR-2.ClaimyourcreditontheMI-1040CRandcheckbox5b ifyouareage65oryounger.Checkboxes5aand5bifyouareblindandage65orolder.When to FileIf you are not required to file an MI-1040, you mayfile your credit claim as soon as you know your 2019total household resources and property taxes levied in

2019. If you file a Michigan income tax return, yourcredit claim should be included with your MI-1040return and filed by April 15, 2020 to be consideredtimely. To avoid penalty and interest, if you owe tax,postmark your return no later than April 15, 2020. Thefiling deadline to receive a 2019 property tax credit is April15,2024.Amending Your Credit ClaimFileanewclaimformandchecktheAmendedReturnboxatthetopofpage1oftheform.If applicable, include a copy of your property tax statement(s) and/or lease agreement. Youmustfilewithinfouryearsofthedatesetforfilingyouroriginalincometaxreturn.Delaying Payment of Your Property TaxesSeniorcitizens,disabledpeople,veterans,survivingspousesof veterans, and farmers may be able to delay payingproperty taxes. Contact your local or county treasurer formoreinformation.Total Household ResourcesTotal household resources are the total income (taxable andnontaxable)ofbothspousesorofasinglepersonmaintainingahousehold.TheyareAGI,excludingnetbusinessandfarmlosses,netrentandroyaltylosses,andanycarryoverofanetoperatingloss,plusallincomeexemptorexcludedfromAGI.Total household resources include the following items not listed on the form:• Capitalgainson thesaleofyourresidenceregardless if thegainsareexemptfromfederalincometax

• Compensation for damages to character or for personalinjuryorsickness

• Aninheritance(exceptaninheritancefromyourspouse)• Proceedsofalifeinsurancepolicypaidonthedeathofthe

insured(exceptbenefitsfromapolicyonyourspouse)• Deathbenefitspaidbyoronbehalfofanemployer• Minister’shousingallowance• Forgiveness of debt, even if excluded from AGI (e.g.,

mortgageforeclosure)• Reimbursement fromdependentcareand/ormedicalcare

spendingaccounts• Scholarships, stipends, grants, and payments, except

governmentpayments,madedirectlytothirdpartiessuchasaneducationalinstitutionorsubsidizedhousingproject.

Total household resources do NOT include:• Netoperatinglossdeductionstakenonyourfederalreturn• Payments received by participants in the foster

grandparentorseniorcompanionprogram• Energyassistancegrants• Governmentpaymentsmadedirectlytoathirdparty(e.g.,

payments to a doctor,GIBill benefits, payments from aPELLgrant).NOTE: If payment is made from money withheld fromyour benefit, the payment is part of total householdresources. (For example, theMDHHSmaypayyour rentdirectlytothelandlord.)

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• Money received from a government unit to repair orimproveyourhomestead

• Surplusfoodorfoodassistanceprogrambenefits• Stateandcityincometaxrefundsandhomesteadproperty

taxcredits• Choreservicepayments(thesepaymentsareincometothe

provideroftheservice)• The first $300 from gambling, bingo, lottery, awards, or

prizes• Thefirst$300ingiftsofcashormerchandisereceived,or

expenses paid on your behalf (rent, taxes, utilities, food,medicalcare,etc.)byparents,relatives,orfriends

• Amounts deducted from Social Security or RailroadRetirementbenefitsforMedicarepremiums

• Life, health, and accident insurance premiums paid byyouremployer

• Loanproceeds• Inheritancefromaspouse• Lifeinsurancebenefitsfromaspouse• Paymentsfromalong-termcarepolicymadetoanursing

homeorothercarefacility• MostpaymentsfromTheStepForwardMichiganprogram.• CompensationforwrongfulimprisonmentVisit www.michigan.gov/taxtotalhouseholdresources formoreinformationontotalhouseholdresources.Special Provisions for FarmersIf you received a farmland preservation tax credit in 2019,you must include it in total household resources. You maysubtractthebusinessportionofyourhomesteadpropertytaxcreditifyouincludeditintaxablefarmincome.Ahomesteadpropertytaxcreditisallowedonlyifthegrossreceiptsfromfarmingexceedtotalhouseholdresources.Property Taxes Eligible for CreditAd valorem property taxes that were levied on yourhomestead in 2019, including administrative collectionfeesup to1percent of the taxes, canbe claimednomatterwhen you pay them. You may add to your 2019 taxes theamount of property taxes billed in 2019 from a correctedor supplemental tax bill. Youmustdeduct from your 2019propertytaxesanyrefundofpropertytaxesreceivedin2019 thatwasaresultofacorrectedtaxbillfromapreviousyear.Do not include: • Delinquent property taxes (e.g., 2018property taxespaid

in2019)• Penaltyandinterestonlatepaymentsofpropertytax• Delinquentwaterorsewerbills• Propertytaxesoncottagesorsecondhomes• Associationduesonyourproperty• Mostspecialassessmentsfordrains,sewers,androadsdo

notmeetspecifictestsandmaynotbeincluded.Youmayincludespecialassessmentsonlyiftheyareleviedusingauniformmillagerate,arebasedontaxablevalue,andareeither levied in the entire taxing jurisdiction or they areused to provide police, fire, or advanced life supportservicesandareleviedtownship-wide,exceptforalloraportionofavillage.

NOTE: School operating taxes are generally only leviedon the non-homestead portion of the property and may not

be included in taxes leviedwhencomputing theproperty taxcreditonanyportionofthehomenotusedasyourhomestead.Home used for business. If you use part of your home forbusiness,youmayclaimthepropertytaxesonthelivingareaofyourhomestead,butnot theproperty taxeson theportionusedforbusiness.IncludeacopyofU.S.Form8829 withyourMichiganreturn.Owner-occupied duplexes. When both units are equal,you are limited to 50 percent of the tax on both units, aftersubtracting the school operating taxes from the total taxesbilled.Owner-occupied income property. Apartmentbuildingandduplex ownerswho live in one of the units or single familyhomeownerswhorentaroom(s)toatenant(s)mustcompletetwocalculationstofigurethetaxtheycanclaimandbasetheircredit on the lower amount. First, subtract 23 percent of therentcollectedfromthetaxclaimedforcredit.Second,reducethe tax claimed for credit by the amount of tax claimed asrentalexpenseonyourU.S.Form1040, Schedule 1. IncludeacopyoftheU.S.Schedule E withyourMichiganreturn.Example:Yourhomehasanupstairsapartmentthatisrentedtoatenantfor$395permonth. Totalpropertytaxesonyourhome are $2,150. Of this amount, $858 is claimed as rentalexpense.Thecalculationsareasfollows:Step 1: $395x12=$4,740annualrent$4,740x0.23=$1,090taxesattributabletotheapartment$2,150totaltaxes-$1,090=$1,060taxesattributabletoowner’shomesteadStep 2:$2,150 total taxes - $858 taxes claimed as a businessdeduction=$1,292taxesattributabletohomesteadStep 3:Theowner’s taxesthatcanbeclaimedforcreditare$1,060,thesmallerofthetwocomputations.Farmers. Includefarmlandtaxesinyourpropertytaxcreditclaimifanyofthefollowingconditionsapply:• Ifyourgrossreceiptsfromfarmingaregreaterthanyour

totalhouseholdresources,youmayclaimallofyourtaxesonunoccupiedfarmlandclassifiedasagricultural.Donot include taxes on farmland that is not adjacent orcontiguous to your home and that you rent or lease toanotherperson.

• Ifgrossreceiptsfromfarmingarelessthanyourhouseholdincome and you have lived in your homemore than tenyears, you may claim the taxes on your home and thefarmlandadjacentandcontiguoustoyourhome.

• If gross receipts from farming are less than yourhousehold income and you have lived in your home less thantenyears,youmayclaimthetaxesonyourhomeandfive acres of farmland adjacent and contiguous to yourhome.

You may not claim rent paid for vacant farmland whencomputingyourpropertytaxcreditclaim.Farmlandownedby a business entity may not be claimed for a homesteadpropertytaxcreditbyoneoftheindividualmembers.Include any farmland preservation tax credit in your totalhouseholdresources.Entertheamountofcredityoureceivedin2019online20orincludeitinnetfarmincomeonline16.

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Homestead property tax credits are not included in totalhousehold resources. If you included this amount in yourtaxable farm income, subtract it from total householdresources.Rent Eligible for CreditYoumustbeunderaleaseorrentalcontracttoclaimrentforcredit. Inmost cases, 23 percent of rent paid is consideredproperty tax that can be claimed for credit. The followingareexceptions:• Ifyourentorleasehousingsubjecttoaservice charge or

fees paidinsteadofpropertytaxes,youmayclaimacreditbasedupon10percentofthegrossrentyoupaid.Enterthisamounton line55and10percentof rentpaidon line56,andfollowinstructions.

• If your housing is exempt from property tax and noservice fee ispaid,youarenoteligible foracredit.This includes university- or college-owned housing.

• Ifyour housing costs are subsidized,baseyourclaimonthe amount you pay. Do not include the federal subsidyamount.

• Ifyouareamobile home park resident,claimthe$3permonthspecifictaxonline10,andthebalanceofrentpaidonline11.

• If you are a cooperative housing corporation resident member, claim your share of the property taxes on thebuilding.Ifyoulive inacooperativewhereresidentspayrent on the land under the building, youmay also claim23 percent of that land rent. NOTE: Do not take 23percentofyourtotalmonthlypayment.

• If you are a resident of a special housing facility (notnotedabove),baseyourclaimonrentonly.Do notincludeotherservices.Ifyoupayrentwithotherservicesandyouare unable to determine the portion that constitutes rentonly, you may determine your portion of the propertytaxes that can be claimed for credit based on squarefootage,or,dividethetaxesbythenumberofresidentsforwhomthehomeislicensedtocare.Thisinformationmaybe obtained from your housing facility. Visit www.michigan.gov/iit for more information aboutclaimantslivinginspecialhousingfacilities.

Example:Youpay$750permonthforroomandboard.Youoccupy 600 square feet of a 62,000 square foot apartmentbuilding. The landlord pays $54,000 in taxes per year.Step 1: 600/62,000=0.0097Step 2: $54,000x0.0097=$524taxesyoucanclaimforcreditHome used for business. Ifyouusepartofyourapartmentor rentedhome forbusiness,youmayclaim the renton thelivingareaofyourhomestead,butnottherentontheportionusedforbusiness.If You Moved in 2019Residents who temporarily lived outside Michigan mayqualify for a credit if Michigan remained their state ofdomicile. Personal belongings and furnishings must haveremained in the Michigan homestead and the homesteadmustnot have been rented or sublet during the temporaryabsence. (See the definitions of resident on page 6 anddomicileonpage26.)If you bought or sold your home or moved during 2019, you must prorate your taxes. CompleteMI-1040CR,

Part 3, to determine the taxes that can be claimed forcredit.Useonly the taxes levied in2019oneachMichiganhomestead, thenprorate taxesbasedondaysofoccupancy.Donot includetaxesonout-of-stateproperty.Donotincludeproperty taxes for property with a taxable value greaterthan$135,000.Excludedfromthisrestrictionisunoccupiedfarmlandclassifiedasagriculturalbyyourassessor.Part-Year ResidentsIfyoulivedinMichiganatleastsixmonthsduringtheyear,youmaybeentitledtoapartialcredit.Ifyouareapart-yearresident,youmustincludeallincomereceivedasaMichiganresident in total household resources (line 33). Complete MI-1040CR, Part 3, to determine the taxes eligible to beclaimedforcreditonyourMichiganhomestead.Deceased Claimant’s CreditThe estate of a taxpayerwho died in 2019 (or 2020 beforefiling a claim) may be entitled to a credit for 2019. Thesurviving spouse, other authorized claimant, or personalrepresentativecanclaimthiscredit.Usethedecedent’snameandSocialSecuritynumberandthepersonalrepresentative’saddress. If the taxpayerdiedafterDecember31,2018,enterthedateofdeathinthe“DeceasedTaxpayer”boxonpage3.Thesurviving spouse isconsideredmarried for theyear inwhich the deceased spouse died andmay file a joint creditforthatyear.EnterbothnamesandSocialSecuritynumberson theform,andwrite“DECD”after thedecedent’s name.Sign the return and write “filing as surviving spouse” inthedeceased’s signature line.Enter thedateofdeath in the“DeceasedTaxpayer”boxon thebottomofpage3. Includethedecedent’sincomeintotalhouseholdresources.If filing as a personal representative or claimant for therefund of a single deceased taxpayer, you must include a U.S. Form 1310 or Michigan Claim for Refund Due a Deceased Taxpayer (MI-1310). Enter the decedent’s nameintheFiler’sNamelineandtherepresentative’sorclaimant’sname, title and address in theHomeAddress line. See the“Deceased Taxpayer Chart of Examples” on page 7. A claimant must prorate to the date of death as noted in thefollowingparagraph.Thepersonal representative or claimant claimingacreditfor a single deceased person or on a jointly filed creditif both filers became deceased during the 2019 tax year,must prorate taxes to the date of death. Complete lines 47through 51 to prorate the property taxes. Annualize totalhouseholdresources(seeinstructionsbelow).Includeacopyof the taxbillsor leaseagreements. If filingasapersonal representative or claimant of deceased taxpayers for ajointly filed return, you must include a U.S. Form 1310 or Michigan Claim for Refund Due a Deceased Taxpayer (MI-1310).Enterthename(s)ofthedeceasedperson(s)intheFiler’sand/orSpouse’sNamelinesandtherepresentative’sorclaimant’sname,title,andaddressintheHomeAddressline.See“DeceasedTaxpayerChartofExamples”onpage7.Annualizing Total Household ResourcesIfyouarefilingapart-yearcredit(foradeceasedtaxpayerorapart-yearresident),youmustannualizethetotalhouseholdresources to determine if the credit reduction applies.(Exception:thesurvivingspousefilingajointclaimdoesnothavetoannualizethedeceasedspouse’sincome.)

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• Ifyouhavecheckedaboxonline5andyourannualizedtotal household resources are less than $6,000 use yourannualized total household resources to determine yourpercentage of taxes not refundable from MI-1040CRTable2onpage33.

• A senior, age 65 or older, filing a part-year credit mustcalculate annualized total household resources beforeusingMI-1040CRTableAonpage33.

• If the annualized income is more than $51,000 for anyclaimant, use annualized total household resources todetermine the percentage allowable in MI-1040CR TableBonpage33.

To annualize total household resources, which projects what it would have been for a full year:Step 1: Divide365bythenumberofdaysthetaxpayerwasaMichiganresidentin2019.Step 2: Multiply the answer from step 1 by the taxpayer’stotalhouseholdresources(MI-1040CR,line33).Theresultistheannualizedtotalhouseholdresources.Married During 2019Ifyoumarriedduring2019,combineeachspouse’sshareoftaxesorrentfortheperiodoftimeyouoryourspouselivedin separate homesteads prior to getting married. Then addthistotheproratedtaxesorrentforyourmaritalhomeafteryourmarriage.YouareonlyallowedtoclaimrentandtaxesonhomesteadslocatedinMichigan.

Filing a Joint Return and Maintaining Separate HomesteadsYour claimmust be based on the tax or rent paid on onlyone home during a 12 month period. The total householdresourcesmustbethecombinedincomeofbothyouandyourspousefortheentireyear.Married Filing Separately and Divorced or Separated Claimants Schedule (Form 5049)This form can be found at www.michigan.gov/taxes.SubmitForm5049withFormMI-1040CR,MI-1040CR-2or MI-1040CR-7ifanyofthefollowingsituationsapplytoyou:• You filed asmarried filing separately, and you and your

spousemaintainedseparatehomesteadsallyear.CompleteonlyPart3ofForm5049.

• You filed asmarried filing separately, and you shared ahomesteadwithyourspouseallyear.

• You filed asmarried filing separately, and you and yourspouse maintained separate homesteads at the end oftheyear.

Filing Separate State Returns and Maintaining Separate HomesteadsSpouseswho file separateMichigan income tax returns anddidnotshareahouseholdduringthetaxyearmayeachclaimacredit.Eachcreditisbasedontheindividualtaxesorrentandindividual total household resources for each person. Thisonly applies to homes located inMichigan. They eachmustcompleteForm5049andprovideanexplanationinPart3.

Married Filing Separately and Shared a HomesteadSpouseswho file separateMichigan income tax returnsbutshared a homestead for the entire year are entitled to oneproperty tax credit. The credit claimmust be based on thetotal household resources of both spouses during the timethe homestead was shared. A spouse claiming the creditmust complete Form 5049 and include the total householdresources for both spouses. A spouse filing the creditshould also include the other spouse’s income on theOtherNontaxable Income line of the Homestead Property TaxCredit Claim. You and your spouse may choose how youwanttodividethecredit.Ifeachspouseclaimsaportionofthecredit,includeacopyoftheclaimshowingeachspouse’sshare of the creditwith each income tax return.Enter onlyyourportionofthecreditonyourMI-1040CR,line44.Separated or Divorced in 2019Figure your credit based on the taxes you paid togetherbefore your separation plus the taxes you paid individuallyafter your separation. Complete and include Form 5049and include a schedule showing your computation. Formore information or to help you calculate a proratedshare of taxes, see Michigan Homestead Property Tax Credits for Separated or Divorced Taxpayers (Form2105).Example: Karl andCathy separatedonOctober 2, 2019.Theannual taxes on the home they owned were $1,860. CathycontinuedtoliveinthehomeandKarlmovedtoanapartmentonOctober2andpaid$350permonthrentfor therestof theyear. Cathy earned $20,000 and Karl earned $25,000. Theylivedtogetherfor274days.Step 1: Calculatetheproratedtotalhouseholdresourcesforeachspouseforthe274daystheylivedtogether.Divideeachspouse’stotalhouseholdresourcesby365days,thenmultiplythatfigureby274.Cathy($20,000/365)x274=$15,014Karl($25,000/365)x274=$18,767Cathy and Karl must each complete Form 5049 and listincomeearnedduringtheperiodtheylivedtogether.Step 2: Add both prorated total household resourcestogether to determine the total for the time they livedtogether.$15,014+$18,767=$33,781Step 3: Divide each individual’s prorated share of totalhouseholdresourcesbythetotalfromStep2todeterminethepercentageattributabletoeach.Cathy$15,014/$33,781=44%Karl$18,767/$33,781=56%Step 4: Calculatetheproratedtaxeseligibleforcreditforthetimetheylivedtogether.Dividethe$1,860by365days,thenmultiplyby274days.($1,860/365)x274=$1,396Step 5: Calculate each individual’s share of the proratedtaxes.Multiply the$1,396by thepercentagesdetermined inStep3.Cathy$1,396x44%=$614Karl$1,396x56%=$782EntertheseamountsonMI-1040CR,line50,columnB.

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Cathy uses lines 47 through 50, columnA, to compute hershareoftaxesfortheremaining91days.Karluseslines52and53tocomputehisshareofrent.Eachcompletes the remaining lines of MI-1040CR according totheforminstructions.Residents of Adult Care Homes Including Assisted Living FacilitiesIf you are a resident of a nursing home, adult foster carehome, or home for the aged; including assisted livingfacilities, that facility is considered your homestead. If thefacility provides an itemized statement that separates rentfromother services, baseyour credit on rent. If the facilitydoes not provide an itemized statement and pays localpropertytaxes(manydonot),youmayclaimyourportionofthosetaxesforcredit.Askthefacilitymanagerforyourshareofthetaxes.Ifyouwishtodetermineyourshareofthetaxesyourself:• Foralicensedfacility,dividetheamountofpropertytaxes

levied in 2019 by the number of residents for which thefacilityislicensed.

• For an unlicensed facility, divide the square footage theclaimantoccupiesbythesquarefootageofthefacilityandmultiplytheresultbythetotalpropertytaxesleviedonthefacility.

If both you and your spouse live in the facility, add yourshares together. If you lived in the facility only part of theyear, multiply this amount by the portion of the year youlivedatthefacility.

Exception: Creditisnotallowedifyourcarefacilitychargesarepaiddirectlytothefacilitybyagovernmentagency.If you maintain a homestead and your spouse lives in anadultcarehome,youmayfilea jointcreditclaim.Computeyour claim using the tax on your homestead and yourspouse’srentorshareofthefacility’spropertytax.If you are single and maintain a homestead (that is not rented)while living in an adult care home, youmay claimeitheryourhomesteadoryourshareofthefacility’spropertytax,butnotboth.Usetheonethatgivesyouthelargercredit.Single Adults Sharing a HomeWhentwoormoresingleadultsshareahome,eachmayfilea credit claim if each has contracted to pay rent or owns ashareofthehome.Eachadultshouldfileanindividualclaimbased on his or her total household resources and proratedshare of taxes or rent paid. Additional information can befoundonTreasury’sWebsite.

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Line-by-Line Instructions for Homestead Property Tax Credit (MI-1040CR)Lines not listed are explained on the form.Amended Return box:Ifamendingyour2019credit,checktheboxatthetopoftheform.Seepages8and26.Lines 1, 2, and 3: Enter your name(s), address, and fullnine-digitSocialSecuritynumber(s). If youaremarried filingseparately,enterbothSocialSecuritynumbers,butdonotenteryourspouse’sname.Line 5: ChecktheboxthatappliestoyouoryourspouseasofDecember31,2019,ifany.Ifbothboxes5aand5bapply,checkboth.Line 5a: Age 65 or older. This includes the unremarriedsurvivingspouseofapersonwhowas65orolderatthetimeofdeath.Youareconsidered65thedaybeforeyour65thbirthday.Line 5b: Deaf, blind, hemiplegic, paraplegic, quadriplegic, or totally and permanently disabled. • Deaf means the primary way you receive messages is

through a sense other than hearing (e.g., lip reading orsignlanguage)

• Blindmeansyourbettereyepermanentlyhas20/200visionor less with corrective lenses, or your peripheral field ofvisionis20degreesorless.

• TotallyandpermanentlydisabledmeansdisabledasdefinedunderSocialSecurityGuidelines42USC416.If you are age 66 or older, you may not file a claim as totally and permanently disabled.

Line 6: Filing Status. Check the box to identify your filingstatus.AllcoupleswhoaremarriedunderthelawsoftheStateofMichigan,orunderthelawsofanotherstate,andaretreatedasmarried for federal taxpurposesmust claimeithermarriedfilingjointlyormarriedfilingseparatelystatusonthepropertytaxcredit.Ifyoufileajointfederalreturn,youmustfileajointproperty taxcredit. Ifyoufiledmarriedfilingseparately,youmust include the total household resources of both spousesunless youmaintained separate homesteads. If you filed yourfederalreturnasheadofhouseholdorqualifyingwidow(er),fileyourpropertytaxcreditassingle.Line 7: Residency. Check the box that describes yourMichigan residency for 2019. If you and your spouse had adifferent residency status during the year, check a box foreachofyou.Ifyoucheckedboxc,enterthedatesofMichiganresidencyin2019.Property TaxLine 8: Homestead Status. Check this box if the taxablevalue of your homestead includes unoccupied farmlandclassifiedasagriculturalbyyourassessor.Line 9: If the taxable value of your homestead is greater than $135,000, STOP; you are not eligible for the homestead property tax credit.Ifyourtaxablevalueislessthan $135,000, enter the 2019 taxable value from your 2019 property tax statement or assessment notice. If you do notknowyourtaxablevalue,contactyourlocalassessor.Farmersshould include the taxablevalueof all land that qualifies forthiscredit(seeinstructionsforfarmersonpage27).Farmers should note that the $135,000 limit on taxable value does not apply to the taxable value on the portion of their homestead that is attributable to unoccupied farmland classified as agricultural.

Line 10: Read “Property Taxes Eligible for Credit” on page27beforeyoucompletethisline.Line 11: Read“RentEligible forCredit”onpage28beforeyoucompletethisline.Total Household ResourcesInclude all taxable and nontaxable income you and yourspouse received in 2019. If your family lived in Michiganand one spouse earned wages outside Michigan, includethe income earned both in and out-of-state in your totalhousehold resources. (See “Total Household Resources,” page26.)Line 14: Enter all compensation received as an employee.Include strike pay, supplemental unemployment benefits(SUB pay), sick pay, or long-term disability benefits,including income protection insurance, and any otheramountsreportedtoyouonFormW-2.Line 15: Do not include business dividend and interestincome reported as a distributive share on Form Schedule K-1.Seeline16instructions.Line 16: Enter amounts to the extent included in AGIfrom:• U.S.Schedule C(ProfitorLossfromBusiness).• PartII(OrdinaryGainsandLosses)oftheU.S.Form4797.• Part II (Income or Loss from Partnerships and

SCorporations)andPartIII(IncomeorLossfromEstatesandTrusts)oftheU.S.Schedule E.

• U.S.Schedule F(ProfitorLossfromFarming).• Includeincomeitemsreportedasadistributiveshare.If the total is negative enter “0.” Include amounts from sources outside Michigan. Include the above federal schedules with your claim.Line 17: Enter amounts to the extent included in AGIfrom:• Part I (Income or Loss from Rental Real Estate and

Royalties)oftheU.S.Schedule E.• Part IV (Income or Loss from Real Estate Mortgage

Investment Conduits (REMIC)) of the U.S. Schedule E (rents,royalties).

• PartV(Netfarmrentalincomeor(loss)fromForm4835)oftheU.S.Schedule E.

If the total is negative enter “0.” Include amounts from sources outside Michigan. Include the above federal schedules with your claim.Line 18: Enterallannuity,retirement,pensionandindividual retirementaccount(IRA)benefits.Thisshouldbethetaxableamount shown on your U.S. Form 1099-R. If no taxableamountisshownonyourU.S.Form1099-R,usetheamountrequired to be included in AGI. Enter “0” if all of yourdistribution is from your contributions made with incomepreviouslyincludedinAGI.IncludereimbursementpaymentssuchasanincreaseinapensiontopayforMedicarecharges.Also include the totalamountofany lumpsumdistributionincluding amounts reported on your U.S. Form 4972. Donot include recoveriesof after-taxcontributionsor amountsrolled over into another plan (amounts rolled over into aRoth IRAmust be included to the extent included inAGI).

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You must include any part of a distribution from a RothIRA that exceeds your total contributions to the RothIRA regardless ofwhether this amount is included inAGI.Assume all contributions to the Roth IRA are withdrawnfirst.NOTE:LossesfromRothIRAscannotbededucted. Line 19: Enternetcapitalgainsandlosses.Thisisthetotalofshort-termandlong-termgains, lessshort-termandlong-termlossesfromyourU.S.Schedule D(lossescannotexceed$3,000ifsingleormarriedfilingjointly,or$1,500ifmarriedfilingseparately). Includegains realizedon thesaleofyourresidencewhetherornotthesegainsareexemptfromfederalincometax.Line 20: Enteralimonyreceivedandother taxable income.Only include alimony received if due to a divorce grantedpriorto2019.Othertaxableincomeincludes:awards,prizes,lottery, bingo, and other gambling winnings over $300;farmland preservation tax credits if not included in netfarmincomeonline16;andforgivenessofdebttotheextentincludedinfederalAGI(e.g.,mortgageforeclosure).Line 21: Enter all Social Security, Supplemental SecurityIncome (SSI), and/or Railroad Retirement benefits. Includedeathbenefitsandamounts received for minor children or other dependent adultswholivewithyou.Reporttheamountactuallyreceivedfortheyear.MedicarepremiumsreportedonyourSocialSecurityorRailroadRetirementstatementshouldbededucted.Line 22: Enterchildsupportandallpaymentsreceivedasafosterparent.NOTE:Ifyoureceiveda2019 Custodial Party End of Year Statement (FEN-851) showing child supportpayments paid to the Friend of the Court, enter the childsupport portion here and include a copy of the statement. Seeline27instructions.Line 23: Enter all unemployment compensation receivedduring2019.Line 24: Enter the value over $300 in gifts of cash ormerchandisereceived,orexpensespaidonyourbehalf(rent,taxes,utilities,food,medicalcare,etc.)byparents,relatives,or friends. This includes the amount of financial supportyoureceived ifyouareclaimedasadependentonsomeoneelse’s return. Do not include government payments madedirectlytothirdpartiessuchasaneducationalinstitutionorsubsidizedhousingproject.Line 25: Enterothernontaxableincome.Thisincludes:• Nongovernmental scholarship, stipend or grant payments

paiddirectlytoaneducationalinstitution• Compensation for damages to character or for personal

injuryorsickness• Aninheritance(exceptaninheritancefromyourspouse)• Proceedsofalifeinsurancepolicypaidonthedeathofthe

insured(exceptbenefitsfromapolicyonyourspouse)• Deathbenefitspaidbyoronbehalfofanemployer• Minister’shousingallowance• ForgivenessofdebttotheextentnotincludedinfederalAGI

(e.g.,mortgageforeclosure)• Reimbursement fromdependentcareand/ormedicalcare

spendingaccounts

• Ifyouaremarriedfilingseparately,includeyourspouse’sincome unless you maintained separate homesteadsduringtheyear.CompleteandincludeForm5049.

Line 26: Enter workers’ compensation, service-connecteddisability compensation and pension benefits from theVeterans Administration. Veterans receiving retirementbenefitsshouldenterthebenefitsonline18.Line 27: Enter the total paymentsmade to your householdby MDHHS and all other public assistance paymentssuch as state adoption subsidies. Your 2019 Client Annual Statement (DHS-1241)mailed byMDHHS in January 2020will show your totalMDHHS payments. Your statement(s)may include the following: Family Independence Program(FIP)assistance,StateDisabilityAssistance(SDA),RefugeeAssistance,RepatriateAssistance, and vendor payments forshelter,heat,andutilities.NOTE: If you received a 2019 FEN-851 (include a copy),subtract the amount of child support payments entered online 22 from the total MDHHS payments and enter thedifferencehere.Line 30: Enter total adjustments from your U.S. Form1040, Schedule 1. Describe adjustments to income. Theseadjustments reduce total household resources and includesomeofthefollowing:• PaymentstoIRAs,SEP,SIMPLE,orqualifiedplans• Studentloaninterestdeduction• Moving expenses incurred by members of the Armed

Forcesonactiveduty and,due to amilitaryorder,moveinto or within Michiganbecauseofapermanentchangein station. Moving expenses when moving out ofMichigan cannot be included in “Other Adjustments” toreducetotalhouseholdresources

• Deductionforself-employmenttax• Self-employedhealthinsurancededuction• Penaltyonearlywithdrawalofsavings• AlimonypaidifdeductibleonyourU.S.Form1040• Jurydutypayyougavetoyouremployer• ArcherMedicalSavingsAccount(MSA)deduction• HealthSavingsAccount(HSA)deduction• Anyotheradjustments togross income includedonyour

2019U.S.Form1040, Schedule 1.Line 31: Enter health insurance premiums, HealthMaintenance Organization (HMO) premiums, or otherinsurance premiums you paid for yourself and your family.Includethefollowingpremiums:• Medicalinsurance• Dentalinsurance• Visioninsurance• Prescriptiondrugplan• Automobileinsurance(medicalcareportiononly).Donotincludeanyinsurancepremiumsdeductedonlines21or 30, amounts paid for income protection insurance (long-term disability), long-term care insurance, or amounts paidbyanemployerwithpre-taxpayrollcontributions.You must reduce an insurance premium by the federalpremiumtaxcreditreceivedunderthePatientProtectionandAffordableCareAct.Usethe2019U.S.PremiumTaxCredit

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Form 8962 to calculate the net insurance premium. Theannualtotalinsurancepremium(line11AofU.S.Form8962 orthesumoflines12Athrough23AofU.S.Form8962)lessthetotalpremiumtaxcredit(line24ofU.S.Form8962)maybeclaimed.Property Tax CreditLine 34: Multiply line 33 by 3.2 percent (0.032) or thepercentage from MI-1040CR Table 2. This is the amount that will not be refunded. The personal representativeclaimingacreditforadeceasedtaxpayerwithtotalhouseholdresources of $6,000 or less must annualize the decedent’sincome and use the annualized figure to determine thenonrefundable percentage from Table 2. Then use theactual total household resources to compute the credit. See“AnnualizingTotalHouseholdResources”onpage29.

PART 1: Allowable Computation Based on Claimant StatusCompleteonlySectionA,B,orC,whicheverappliestoyou.Senior claimantswho checkedonly 5a completeSectionA.Claimants who checked only 5b or checked both boxes 5aand 5b complete Section B. All other claimants completeSectionC.

Line 37:EnterthepercentagefromMI-1040CRTableAthatapplies to your total household resources from line 33. Asenior,age65orolder,filingapart-yearcreditmustcalculateannualized total household resources to determine thereductionpercentageusingMI-1040CRTableA.Line 42: If you checked only 5a enter the amount fromline 38. If you checked only 5b or checked both 5a and 5benter the amount from line 39.All others enter the amountfromline41.IfyoureceivedFIPassistanceorotherMDHHSbenefits in 2019, prorate your credit to reflect the ratio ofincomefromothersourcestototalhouseholdresources. Toprorate your credit use the information from your form tocompleteMI-1040CRWorksheet3.

Line 43: The computed credit is reduced by 10 percent forevery $1,000 (or part of $1,000) that your total householdresources exceed $51,000. Enter the percentage fromMI-1040CR Table B that applies to your total householdresourcesfromline33.NOTE: If you are filing a part-year credit and theannualized income is more than $51,000, use annualizedtotal household resources to determine the percentageallowableinMI-1040CRTableB.

MI-1040CR TABLE 2:PERCENT OF TAXES NOT REFUNDABLE

ALL GENERAL CLAIMANTS

Income % of Income$0 - $60,000 ..................................... 3.2%

OTHER CLAIMANTS *Income % of Income$3,000 or less ................................... 0%$3,001 - $4,000 ................................ 1%$4,001 - $5,000 ................................ 2%$5,001 - $6,000 ................................ 3%More than $6,000 ............................. 3.2%

*Other claimants are senior citizens or people who are paraplegic, hemiplegic, quadriplegic, deaf, or totally and permanently disabled or unremarried spouse of an individual 65 or older.

MI-1040CR TABLE A: SENIOR CREDIT REDUCTION

Total Household Resources Percentage

$21,000 or less........................... 100% (1.00)$21,001 - $22,000 ........................ 96% (0.96)$22,001 - $23,000 ........................ 92% (0.92)$23,001 - $24,000 ........................ 88% (0.88)$24,001 - $25,000 ........................ 84% (0.84)$25,001 - $26,000 ........................ 80% (0.80)$26,001 - $27,000 ....................... 76% (0.76)$27,001 - $28,000 ....................... 72% (0.72)$28,001 - $29,000 ........................ 68% (0.68)$29,001 - $30,000 ........................ 64% (0.64)$30,001 - $60,000 ........................ 60% (0.60)

MI-1040CR WORKSHEET 3: FIP/MDHHS BENEFITS

A. Enter amount from line 27 (FIP and other MDHHS benefits) .....................

B. Enter amount from line 33 (Total Household Resources) ......................

C. Subtract line A from line B (if amount is a negative value, enter “0”)

D. Divide line C by line B and enter percentage here ................................

E. If you checked only box 5a, enter the amount from line 38. If you checked box 5b, enter the amount from line 39. All others, enter the amount from line 41 here (maximum $1,500) ..............................................

F. Multiply line E by line D. If you are age 65 or older and you rent your home, enter amount here and on line A of Worksheet 4. Otherwise, enter here and on your MI-1040CR, line 42

MI-1040CR TABLE B: HOMESTEAD PROPERTY TAX CREDIT PHASE OUT

Total Household Resources Percentage

$51,000 or less............................... 100% (1.00)$51,001 - $52,000 ............................ 90% (0.90)$52,001 - $53,000 ............................ 80% (0.80)$53,001 - $54,000 ............................ 70% (0.70)$54,001 - $55,000 ............................ 60% (0.60)$55,001 - $56,000 ............................ 50% (0.50)$56,001 - $57,000 ............................ 40% (0.40)$57,001 - $58,000 ........................... 30% (0.30)$58,001 - $59,000 ........................... 20% (0.20)$59,001 - $60,000 ............................ 10% (0.10)$60,001 - above ................................. 0% (0.00)

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Alternate Property Tax Credit for Renters Age 65 or OlderIf you are a senior renter age 65 or older you mayqualify for the Alternate Property Tax Credit. Complete MI-1040CRWorksheet 4 to determine if you qualify. Visit www.michigan.gov/incometax for help calculating theAlternatePropertyTaxCreditforRentersAge65orOlder.MI-1040CR Worksheet 4, Line B: Enter rent paidfrom line 53 and/or, if you live in service fee housing,enter amount from line 55. If you moved from one rentalhomestead toanotherduring the last twoyears(alsosee“IfYouMovedin2019”onpage28),entersmallerof:• Thefinalmonth’srentonyourpreviousrentedhomestead

multipliedby12,or• Theactualrentpaidfromline53and/orline55.

PART 4: RentersSee“RentEligibleforCredit”onpage28.Line 52: If you rented a Michigan homestead subject tolocal property taxes, enter the street number and name,city, landlord’s name and address, number of monthsrented, rent paid per month, and total rent paid. Do thisfor each Michigan homestead rented during 2019 and foreach time rental amountschanged. Ifyouneedmore space,include an additional sheet. Do not include more than 12months’ rent. If youmarried during 2019, see page 29. Donot includeamountspaiddirectly to the landowneronyourbehalf by a government agency, unless payment is madewithmoneywithheld fromyour benefit. If youpay lot renton your mobile home, subtract the $3 per month propertytax from the monthly rent amount. Claim the remainingbalance of rent on lines 52, 53 and on line 11. If you livedinaspecialhousingfacility(otherthancooperativehousing)and received an itemized statement fromyour landlord thatseparatesrentfromotherservices(suchasfood),reportrentonthisline.

MI-1040CR WORKSHEET 4: ALTERNATE PROPERTY TAX CREDIT FOR RENTERS AGE 65 AND OLDER

A. Enter the amount from line 42 or, if line 33 exceeds $51,000, line 42 multiplied by line 43. If you received FIP/MDHHS, enter the amount from Worksheet 3, line F ...............................

B. Enter rent paid from line 53 and/or line 55 ...................................................

C. Multiply amount on line 33 by 40% (0.40) and enter here ............................

D. Subtract line C from line B. If line C is more than line B, enter “0” ................

E. Enter the larger of line A or line D here and carry amount to your MI-1040CR, line 44 (maximum $1,500) ....................

PART 5: Alternate Housing FacilitiesIf you are completing lines 54 through 57, you must alsocompleteline58.Line 54: If your housing costs are subsidized, check box54aandenterthetotalamountofrentyoupaidonline55andon line11.Donot includeamountspaidonyourbehalfby a government agency. Complete lines 12 through 44 tocalculateyourcredit.IfyoulivedinServiceFeeHousing(evenifitwassubsidizedhousing), check box 54b and enter the amount of rent you paidonline55.Donotincludeamountspaidonyourbehalfby a government agency. Enter 10 percent of the rent on lines 56 and 10 (as property taxes), and complete lines 13through44tocalculateyourcredit.Line 57: Ifyoulivedinoneof thespecialhousingfacilitiesidentifiedandrentisnotitemized,checktheappropriateboxand calculate your prorated share of property taxes. If youlived in a special housing facility (other than cooperativehousing) and received an itemized statement from yourlandlord that separates rent from other services, do not completeline57sincerentisreportedonline52.See“RentEligible for Credit” and “Residents of Adult Care Homesincluding Assisted Living Facilities” on pages 28 and 30,respectively.

59

WORKSHEET 5 - EXEMPTION ALLOWANCE FOR SCHEDULE NR When One Spouse Is a Full-Year Resident and the other a Part-Year or Nonresident

Computing Amount of Exemption for Part-Year or Nonresident Income1. MichigansourceincomefromScheduleNR,line14,columnBforspousewhoisNOTafull-yearresident.........................................................................................................................1. ________________________2. TotalIncomefromScheduleNR,line14,columnAforspousewhoisNOTafull-yearresident............2. ________________________3. Divideline1byline2andenterpercentagehere......................................................................................3. ________________________4. Michiganpersonalexemptionallowance...................................................................................................4. ________________________5.Numberofspouse’sspecialexemptionsfromMI-1040,line9b______x$2,700................................5. ________________________6. Numberofspouse’squalifieddisabledveteranexemptionfromMI-1040,line9c_______x$400......6. ________________________7.Numberofspouse’sCertificatesofStillbirthfromMDHHSfromMI-1040,line9d_______x$4,400.7. ________________________8. Addlines4,5,6and7................................................................................................................................7. ________________________9.Multiplyline8bythepercentageonline3................................................................................................8. ________________________Computing Amount of Prorated Exemption Amount for Dependents10.AmountfromScheduleNR,line14columnB.........................................................................................9. ________________________11.AmountfromScheduleNR,line14columnA.......................................................................................10. ________________________12.Divideline10byline11andenterpercentagehere................................................................................ 11. ________________________13.Multiplyline12byexemptionallowanceof$4,400...............................................................................12. ________________________14.Multiplyline13bythenumberofdependentsclaimed...........................................................................13. ________________________15.Multiplyline12bythenumberofdependentsclaimedwhoarequalifieddisabledveterans(fromMI-1040,line9c)_______x$400........................................................................................14. ________________________16.Multiplyline11bythenumberofdependentsclaimedwithspecialexemptions fromMI-1040,line9b_______x$2,700.......................................................................................15. ________________________Computing Amount of Exemption for Michigan Resident Spouse17.Residentspouse’spersonalexemptionallowance...................................................................................16. ________________________18.Numberofresidentspouse’sspecialexemptionsfromMI-1040,line9b______x$2,700................17. ________________________19.Numberofresidentspouse’squalifieddisabledveteranexemptionfromMI-1040,line9c_______x$400.........................................................................................................................19. ________________________20.Numberofresidentspouse’sCertificatesofStillbirthfromMDHHSfromMI-1040,line9d_______x$4,400....................................................................................................................20. ________________________21.Addlines17,18,19and20.....................................................................................................................21. ________________________22.Addlines9,14,15,16,and21andcarrytoScheduleNR,line19.........................................................22. ________________________

%$4,400

%

$4,400

TABLE 3 - FEDERAL SCHEDULES IfyoufileanyofthefollowingschedulesorformswithyourfederalreturnyoumustincludeacopywithyourMichiganincometaxreturn:Schedule1.........................................................AdditionalIncomeandAdjustmentstoIncomeSchedule2.........................................................AdditionalTaxesSchedule3.........................................................AdditionalCreditsandPaymentsScheduleA......................................................... ItemizedDeductionsScheduleB......................................................... InterestandDividendIncome(ifover$5,000)ScheduleC......................................................... ProfitorLossFromBusinessSchedulesDand4797........................................ CapitalandOrdinaryGainsandLossesScheduleE.......................................................... SupplementalIncomeandLossScheduleF.......................................................... FarmIncomeandExpensesScheduleR.......................................................... CreditfortheElderlyorDisabledForm1040NR.....................................................NonresidentAlienIncomeTaxReturnForm2555.......................................................... ForeignEarnedIncomeForm3903..........................................................MovingExpensesForm4868..........................................................ApplicationforAutomaticExtensionofTimetoFileU.S.IndividualIncomeTaxReturnsForm6198.......................................................... ComputationofDeductibleLossFromActivityDescribedinIRCSection465(c)Form8829.......................................................... ExpensesforBusinessUseofYourHomeForm461............................................................ LimitationonBusinessLossesIfyouhaveincomeorlossesattributabletootherstates,youmustincludeallrelevantfederalschedulesandsupportingstatementslistedaboveIncludeSchedule K-1swhichsupportyourfederalSchedules B, D, Eand4797.Thetype,sourceandlocationoftheincomeorlossmustbeidentified.ForassistanceconveyingthisinformationtoTreasury,refertothe“Business,Rental&RoyaltyActivityWorksheet”andtheinstructionsavailableonTreasury’sWebsite.Ifyoudonotincludethefederalschedulesandsupportingstatements,processingofyourreturnmaybedelayedoryourcredit/subtractionmaybedenied.

60

Michiganpublic school districts are listed alphabeticallywith codenumbers to the left of thenames. Whenmore thanonedistrict has the samename, the countyor city name in parentheses helps you choose the right district. Residents, choose thecode for thedistrictwhereyou livedonDecember31,2019. Callyour local assessoror treasurer ifyoudonot knowyour school district name. Nonresidents, enter “10000” in the school district codebox.

School District Code List (See MI-1040 or MI-1040CR, line 4.)

73180 Bridgeport-Spaulding11340 Bridgman47010 Brighton17140 Brimley46050 BrittonDeerfield12020 Bronson76060 BrownCity11310 Buchanan28035 Buckley73080 BuenaVista56020 BullockCreek75020 BurrOak02020 BurtTwp.78020 Byron41040 ByronCenter

83010 Cadillac41050 Caledonia31030 Calumet30010 Camden-Frontier74040 Capac25080 Carman-Ainsworth55010 Carney-Nadeau79020 Caro73030 Carrollton59020 CarsonCity-Crystal76070 Carsonville-Pt.Sanilac32030 Caseville79030 CassCity14010 Cassopolis41070 CedarSprings50010 CenterLine05035 CentralLake59125 CentralMontcalm75030 Centreville15050 Charlevoix23030 Charlotte31050 ChassellTwp.16015 Cheboygan81040 Chelsea73110 ChesaningUnion54025 ChippewaHills50080 ChippewaValley32040 Church18010 Clare63090 Clarenceville63190 Clarkston63270 Clawson39020 Climax-Scotts46060 Clinton50070 Clintondale25150 Clio12010 Coldwater56030 Coleman32260 ColfaxTwp.11330 Coloma75040 Colon38040 Columbia39030 Comstock41080 ComstockPark38080 Concord75050 Constantine70120 Coopersville78100 Corunna80040 Covert20015 CrawfordAuSable82230 Crestwood76080 Croswell-Lexington33040 Dansville25140 Davison82030 Dearborn

31020 AdamsTwp.46020 Addison46010 Adrian58020 Airport79010 Akron-Fairgrove24030 Alanson05010 Alba13010 Albion01010 Alcona74030 Algonac03030 Allegan82020 AllenPark70040 Allendale29010 Alma44020 Almont04010 Alpena50040 AnchorBay81010 AnnArbor06010 ArenacEastern50050 Armada07010 ArvonTwp.29020 Ashley13050 Athens25130 Atherton60010 Atlanta06020 AuGres-Sims02010 AuTrain-Onota63070 Avondale

32010 BadAxe43040 Baldwin80020 Bangor (VanBuren)80240 BangorTwp.09030 BangorTwp. (Bay)07020 Baraga21090 BarkRiver-Harris19100 Bath13020 BattleCreek09010 BayCity37040 BealCity51020 BearLake15010 Beaver Island26010 Beaverton58030 Bedford25240 Beecher34080 Belding05040 Bellaire23010 Bellevue25060 Bendle25230 Bentley11010 BentonHarbor10015 BenzieCountyCentral63050 Berkley34140 BerlinTwp.11240 BerrienSprings27010 Bessemer21065 BigBayDeNoc62470 Big Jackson54010 BigRapids73170 BirchRun63010 Birmingham46040 Blissfield63080 BloomfieldHills80090 Bloomingdale49020 BoisBlancPines15020 BoyneCity15030 BoyneFalls63180 Brandon11210 Brandywine29040 Breckenridge22030 BreitungTwp.

82040 DearbornHeights80050 Decatur76090 Deckerville46070 Deerfield08010 Delton-Kellogg17050 DeTour82010 Detroit19010 DeWitt81050 Dexter31100 DollarBay-TamarackCity14020 DowagiacUnion44050 Dryden58050 Dundee78030 Durand

74050 EastChina50020 EastDetroit41090 EastGrandRapids38090 East Jackson15060 East Jordan33010 EastLansing34340 EastonTwp.23050 EatonRapids11250 EauClaire82250 Ecorse14030 Edwardsburg05060 ElkRapids32050 Elkton-Pigeon-BayPortLaker05065 Ellsworth31070 ElmRiverTwp.49055 Engadine21010 Escanaba09050 Essexville-Hampton67020 Evart66045 Ewen-TroutCreek40060 Excelsior

68030 Fairview63200 Farmington18020 Farwell03050 Fennville25100 Fenton63020 Ferndale50090 Fitzgerald82180 FlatRock25010 Flint25120 Flushing40020 ForestArea41110 ForestHills36015 ForestPark19070 Fowler47030 Fowlerville73190 Frankenmuth10025 Frankfort-Elberta50100 Fraser73200 Freeland62040 Fremont61080 Fruitport29050 Fulton

39050 Galesburg-Augusta11160 GalienTwp.82050 GardenCity69020 Gaylord25070 Genesee82290 Gibraltar21025 Gladstone26040 Gladwin45010 GlenLake03440 Glenn80110 Gobles41120 Godfrey-Lee

41020 GodwinHeights25050 Goodrich25030 GrandBlanc70010 GrandHaven23060 GrandLedge41010 GrandRapids41130 Grandville62050 Grant42030 GrantTwp.38050 GrassLake59070 Greenville82300 Grosse IleTwp.82055 GrossePointe39065 GullLake52040 Gwinn

11670 HagarTwp.35020 Hale03100 Hamilton82060 Hamtramck31010 Hancock38100 Hanover-Horton32060 HarborBeach24020 HarborSprings13070 HarperCreek82320 HarperWoods18060 Harrison64040 Hart80120 Hartford47060 Hartland33060 Haslett08030 Hastings63130 HazelPark73210 Hemlock62060 Hesperia82070 HighlandPark60020 Hillman30020 Hillsdale70020 Holland63210 Holly33070 Holt61120 Holton13080 Homer03070 Hopkins72020 HoughtonLake31110 Houghton-PortageTwp.47070 Howell46080 Hudson70190 Hudsonville82340 Huron63220 HuronValley

58070 Ida44060 ImlayCity82080 Inkster16050 InlandLakes34010 Ionia34360 IoniaTwp.22010 IronMountain27020 Ironwood52180 Ishpeming29060 Ithaca

38170 Jackson58080 Jefferson (Monroe)70175 Jenison69030 Johannesburg-Lewiston30030 Jonesville

61

39010 Kalamazoo51045 KalevaNormanDickson40040 Kalkaska25110 Kearsley41140 Kelloggsville41145 KenowaHills41150 KentCity41160 Kentwood28090 Kingsley79080 Kingston

07040 L’Anse50140 L’AnseCreuse78040 Laingsburg57020 LakeCity25200 LakeFenton31130 LakeLinden-Hubbell63230 LakeOrion50120 LakeShore (Macomb)11030 Lakeshore (Berrien)13090 Lakeview (Calhoun)50130 Lakeview (Macomb)59090 Lakeview (Montcalm)25280 LakeVille34090 Lakewood63280 Lamphere33020 Lansing44010 Lapeer80130 Lawrence80140 Lawton45020 Leland49040 LesCheneaux33100 Leslie81070 Lincoln82090 LincolnPark25250 Linden30040 Litchfield82095 Livonia41170 Lowell53040 Ludington

49110 Mackinac Island16070 MackinawCity46090 Madison (Lenawee)63140 Madison (Oakland)05070 Mancelona81080 Manchester51070 Manistee77010 Manistique83060 Manton23065 MapleValley13095 MarLee14050 Marcellus67050 Marion76140 Marlette52170 Marquette13110 Marshall03060 Martin74100 Marysville33130 Mason (Ingham)58090 Mason (Monroe)53010 MasonCountyCentral53020 MasonCountyEastern80150 Mattawan79090 Mayville57030 McBain82045 Melvindale-NorthAllenPark74120 Memphis75060 Mendon55100 Menominee56050 Meridian73230 Merrill83070 Mesick38120 MichiganCenter21135 MidPeninsula56010 Midland81100 Milan79100 Millington68010 Mio-AuSable

61060 MonaShores58010 Monroe59045 Montabella61180 Montague25260 Montrose49070 MoranTwp.46100 Morenci54040 MorleyStanwood78060 Morrice50160 Mt.Clemens25040 Mt.Morris37010 Mt.Pleasant02070 Munising61010 Muskegon61020 MuskegonHeights

38130 Napoleon52090 Negaunee11200 NewBuffalo50170 NewHaven78070 NewLothrop62070 Newaygo52015 N.I.C.E. (Ishpeming)11300 Niles30050 NorthAdams-Jerome44090 NorthBranch55115 NorthCentral22045 NorthDickinson32080 NorthHuron61230 NorthMuskegon45040 Northport41025 Northview82390 Northville38140 Northwest22025 Norway-Vulcan75100 Nottawa63100 Novi

63250 OakPark61065 Oakridge33170 Okemos23080 Olivet71050 Onaway23490 OneidaTwp.51060 Onekama46110 Onsted66050 Ontonagon61190 OrchardView35010 Oscoda03020 Otsego19120 Ovid-Elsie32090 Owendale-Gagetown78110 Owosso63110 Oxford

34040 Palo39130 Parchment80160 PawPaw76180 Peck24040 Pellston13120 Pennfield64070 Pentwater78080 Perry24070 Petoskey19125 Pewamo-Westphalia17090 Pickford47080 Pinckney09090 Pinconning67055 PineRiver30060 Pittsford03010 Plainwell82100 Plymouth-Canton63030 Pontiac32130 PortHope74010 PortHuron39140 Portage34110 Portland71060 Posen23090 Potterville52100 PowellTwp.

12040 Quincy

21060 RapidRiver61210 Ravenna30070 Reading82110 RedfordUnion67060 ReedCity79110 Reese61220 Reeths-Puffer52110 Republic-Michigamme50180 Richmond82120 RiverRouge11033 RiverValley82400 Riverview63260 Rochester41210 Rockford71080 RogersCity50190 Romeo82130 Romulus72010 Roscommon50030 Roseville63040 RoyalOak17110 Rudyard

73010 SaginawCity73040 SaginawTwp.81120 Saline46130 SandCreek76210 Sandusky34120 Saranac03080 Saugatuck17010 SaultSte.Marie39160 Schoolcraft64080 Shelby37060 Shepherd32610 SigelTwp. 3 (Adams)32620 SigelTwp. 4 (Eccles)32630 SigelTwp. 6 (Kipper)11830 SodusTwp.80010 SouthHaven50200 SouthLake63240 SouthLyon82140 SouthRedford63060 Southfield82405 Southgate41240 Sparta70300 SpringLake38150 Springport73240 St.Charles49010 St. Ignace19140 St. Johns11020 St. Joseph29100 St.Louis06050 Standish-Sterling31140 StantonTwp.55120 Stephenson33200 Stockbridge75010 Sturgis58100 Summerfield02080 SuperiorCentral45050 SuttonsBay73255 SwanValley25180 SwartzCreek

48040 Tahquamenon35030 Tawas82150 Taylor46140 Tecumseh13130 Tekonsha08050 ThornappleKellogg75080 ThreeRivers28010 TraverseCity82155 Trenton59080 TriCounty63150 Troy

32170 Ubly13135 UnionCity79145 Unionville-Sebewaing50210 Utica

82430 VanBuren50220 VanDyke69040 Vanderbilt38020 VandercookLake79150 Vassar32650 VeronaTwp.59150 Vestaburg39170 Vicksburg

27070 Wakefield-Marenisco30080 Waldron64090 Walkerville63290 WalledLake50230 Warren50240 WarrenWoods63300 Waterford27080 WatersmeetTwp.11320 Watervliet33215 Waverly03040 WaylandUnion82160 Wayne-Westland33220 Webberville52160 WellsTwp.63160 WestBloomfield65045 WestBranch-RoseCity36025 West IronCounty70070 WestOttawa38010 Western82240 Westwood25210 WestwoodHeights62090 WhiteCloud75070 WhitePigeon17160 WhitefishTwp.58110 Whiteford61240 Whitehall81140 WhitmoreLake35040 Whittemore-Prescott33230 Williamston81150 WillowRun16100 Wolverine82365 Woodhaven-Brownstown82170 Wyandotte41026 Wyoming

74130 Yale81020 Ypsilanti

70350 Zeeland

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62

Summary of Income Tax Credits, Additions, and SubtractionsBelow is a summary of income tax credits, additions, andsubtractionsavailabletotaxpayers.Detailedinformationforeachisprovidedonthepagenumberindicatedbelow.CreditsThe following refundable credits may be claimed on your MI-1040. The line reference follows the credit listed below.MI-1040-NonrefundableCredits PageTaxespaidtogovernmentunitsoutsideMichigan(18).............10HistoricPreservationTaxCredit(19)........................................ 11MI-1040-RefundableCredits PageHomesteadPropertyTaxCredit(25).........................................26FarmlandPreservationTaxCredit(26)..................................... 11EarnedIncomeTaxCredit(27).................................................. 11HistoricPreservationTaxCredit(28)........................................ 11The following credit is claimed on your MI-1040CR-7 Home Heating Credit Claim form.HomeHeatingCredit....... SeeMI-1040CR-7InstructionBooklet

AdditionsThe following additions are claimed on your Schedule 1; total additions are carried forward to your MI-1040, line 11. The Schedule 1 line reference follows the addition listed below. PageGross interest, dividends, and income fromobligationsor securities of states and their political subdivisionsotherthanMichigan (1)..................................................................... 13Deduction takenonyour federal return for self-employment taxor other taxes onormeasuredby income (2)................. 13Capital gains from theMichigan columnof theMI-1040D orMI-4797 (3)......................................................................... 13Certain losses fromabusiness or property located in another state (4)................................................................... 13Net loss from the federal columnof yourMichigan MI-1040DorMI-4797 (5)....................................................... 13Gross expenses fromMichiganoil andgas activity andnonferrousmetallicminerals extraction (6)............................ 13Net operating loss deductionused to reduceAGI (7)........... 13Moneywithdrawn in the taxyear fromaMichiganEducationSavingsProgram (MESP) account if thewithdrawalwasnot aqualifiedwithdrawal as provided in theMESPAct (8)........ 13Refund received fromaMichiganEducationTrust (MET)contract (8)............................................................................... 13

Subtractions The following subtractions are claimed on your Schedule 1; total subtractions are carried forward to your MI-1040, line 13. The Schedule 1 line reference follows the subtraction listed below. PageIncomefromU.S.governmentobligations (SeriesEEBonds,Treasurynotes,etc.)(10)............................13Military,MichiganNationalGuard and taxable railroad retirement benefits (11)...............................................13Gains from federal columnofMichigan MI-1040DandMI-4797 (12)...................................................13Incomeattributable to another state (13).................................13Compensation received for activeduty inU.S.ArmedForces and taxableSocialSecurity (14).............14Renaissance zonededuction (15).............................................14Michigan state and city income tax refunds and homesteadproperty tax credit refunds (16).............................14Contributionsmade to accounts established through MESP (17).................................................................................14Contract price for aMETcontract (18)..................................14Charitable contributions toMETprograms (18).....................14Gross income fromMichiganoil andgas activityandnonferrousmetallicminerals extraction (19)....................14ExemptedResident tribalmember income (20)......................14Amount used to determine the credit for elderly or totally andpermanentlydisabled fromU.S.Form1040 Schedule R (21).........................................................................15Holocaust victimpayments (21)...............................................15MichiganStandardDeduction (23)..........................................16Qualifying retirement andpensionbenefits (24).SeePension Schedule (Form4884)...............................................................16Dividends, interest, and capital gains for senior citizens (25)..16MichiganNOL (27)..................................................................16

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IndexIncome Tax PageAdditionstoincome..........................................................13Amending...........................................................................8Annualizingtotalhouseholdresources............................29Appeals...............................................................................3Blindexemption................................................................ 10Canadianprovincialtaxcredit.......................................... 10Deafexemption................................................................. 10Deceased....................................................................... 7,28DirectDeposit...................................................................12Disabled,defined.............................................................. 10Duedate..............................................................................4Earnedincometaxcredit.................................................. 11Electronicfiling..............................................................1,3Estimatedpayments............................................................6Extensions...........................................................................6Federalschedules..............................................................59Filingrequirements.............................................................3Homesteadproperty.................................................... 11,26Interest................................................................................4Line-by-lineinstructions.................................................. 10MESP.......................................................................... 13,14MET............................................................................ 13,14Militarypay.................................................................. 3,14Netoperatinglosses................................................ 8,16,26Nonresidents,incomeallocation........................7,13,49,59Out-of-stateincometaxcredit..........................................10Part-yearresidents,incomeallocation.............. 6,13,49,59Penalty..........................................................................4,12Pensionsandretirement....................................17-25,51,53QualifiedDisabledVeteransexemption...........................10Reciprocalstates.................................................................7Renaissancezonededuction............................................. 14Repaymentsofincomereportedinaprioryear.................8Residency...................................................................... 6,10Roundingnumbers..............................................................4Schooldistrictcodelist............................................... 60-61Specialexemptions........................................................... 10StandardDeduction.......................................................... 16StateCampaignFund........................................................ 10Stillbirthexemption..........................................................10Subtractionsfromincome.................................................13Taxcreditsavailable.........................................................62VoluntaryContributionsSchedule............................. 11,55Homestead Property Tax CreditAlternatecreditforseniorcitizens(renters).....................34Amending.........................................................................26Boughtorsoldahome......................................................28Cooperativehousing.........................................................28Deceasedclaimant............................................................28Delaypayingpropertytax................................................26Disabled,defined(line5instructions)............................. 31Divorced,creditcalculation..............................................29Duedate............................................................................26Duplexes............................................................................27Farmers.............................................................................27Homeusedforbusiness....................................................27Homestead,defined..........................................................26

Incomeproperty..................................................................27Line-by-lineinstructions....................................................31Marriedfilingseparately....................................................29Marriedin2019...................................................................29Mobilehomes......................................................................28Moving................................................................................28Nursinghomes....................................................................30Part-yearresidents...............................................................28Propertytaxeseligibleforcredit........................................27Qualifyingforapropertytaxcredit...................................26Rent...............................................................................28,34Schooldistrictcodelist................................................. 60-61Seniorcitizens,defined(line5instructions)......................31Separated,creditcalculation...............................................29Servicefeehousing.............................................................28Sharedhousing....................................................................30Specialhousing.......................................................28,30,34Subsidizedhousing.......................................................28,34Tax-exempthousing............................................................28TotalHouseholdResourcesdefined...................................26TotalHouseholdResourceslimits......................................26Forms, Worksheets and TablesForms4642,Michigan Voluntary Contributions Schedule......55-564884,Michigan Pension Schedule................................. 51-524973,Michigan Pension Continuation Schedule................535049,Michigan Married Filing Separately and Divorced or Separated Claimants Schedule................................ 47-48ScheduleAMD,Michigan Amended Return Explanation of Changes.....................................................................57-58MI-1040,Individual Income Tax Return.......................35-38MI-1040CR,Homestead Property Tax Credit Claim... 43-45Schedule1,Additions and Subtractions........................41-42ScheduleNR,Nonresident and Part-Year Resident Schedule..........................................................49-50ScheduleW,Withholding Tax Schedule....................... 39-40WorksheetsAlternatePropertyTaxCreditforRenters65andOlder........................................................................34ExemptionAllowanceforScheduleNR.............................59FIP/MDHHSBenefits.........................................................33TaxableRailroadRetirementBenefitsorQualifiedRetirementandPensionBenefits...................21UseTax.................................................................................9QuestionnaireWhichSectionofForm4884ShouldIComplete...............19TablesFederalSchedules...............................................................59HomesteadPropertyTaxCreditPhaseOut.........................33PercentofTaxesNotRefundable(MI-1040CR)................33SeniorCreditReduction(MI-1040CR)..............................33UseTax.................................................................................9MiscellaneousNewfor2019.........................................................................2TaxAssistance......................................................................2Other TaxesUseTax............................................................................9,11

64

State Revenues and Financing Sources (Millions of Dollars)

FinancingSource Amount %OtherRevenue&Taxes $26,709.3 47.6%IncomeTax 11,058.9 19.7%SalesandUseTaxes 9,457.7 16.8%MotorVehicle&FuelTaxes 2,764.5 4.9%StateEducationTax 2,339.5 4.2%Business,CorporateandIns.Taxes 1,336.3 2.4%LotteryProfits 1,358.0 2.4%Tobacco&LiquorTaxes 1,127.3 2.0% Total $56,151.5 100.0%

State Expenditures and Financing Uses (Millions of Dollars)

FinancingUse Amount %GeneralGovernment $3,334.9 6.1%Education 16,727.7 30.4%HealthandHumanServices 24,071.4 43.8%PublicSafety&Corrections 2,899.8 5.3%Conservation,Labor,Commerce& EnvironmentalReg. 1,753.3 3.2%Transportation 3,891.1 7.1%TaxCredits 696.1 1.3%Intergovernmental-RevenueSharing 1,289.1 2.3%Interestonlong-termdebt 287.5 0.5%Total $54,950.8 100.0%

Financial Information for Fiscal Year 2018ThisinformationisintendedtoprovideanoverviewandbroadperspectiveoftheState’sfinancialoperations.ThesefigureswerederivedfromthelatestMichigan Comprehensive Annual Financial ReportforthefiscalyearendedSeptember30,2018.

Treasury OfficesTreasuryofficestaffdonotpreparetaxreturns.

DETROITCadillacPlace,1stFloor3060W.GrandBlvd.(openM-F9-12:30,1-4)

DIMONDALE *7285ParsonsDrive (openM-F9-12)(*NOTamailingaddress)

ESCANABAStateOfficeBuilding,1stFloor305LudingtonStreet(openM-W-F8-12only)

FLINTStateOfficeBuilding,1stFloor125E.UnionStreet(openM-F9-12)

Michigan Department of TreasuryLansing, MI 48922 PRSRT STD

U.S. POSTAGE PAID Mich. Dept. of Treasury

GRAND RAPIDSStateOfficeBuilding,1stFloor350OttawaAvenue(openM-F9-12)

STERLING HEIGHTS41300DequindreRoad,1stFloor(openM-F9-12:30,1-4)

TRAVERSE CITY701S.ElmwoodAvenue,1stFloor(open8-12only)

Figures represented in millions of dollars may not add to totals because of rounding.

· 2020. 9. 8. · ................................................................

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