Income Tax Rate: 4.35% Flat (Michigan has a Flat Income Tax Rate)
Governor: Jennifer Granholm
Income Tax Revenue (2007): $23,848,753,000.00
Michigan Population 10,049,790
TurboTax provides free electronic state tax filing for qualified residents of the state of Michigan. Michigan is a sponsor of the Free File program therefore Michigan's lower income taxpayers can e-file their state taxes with TurboTax at no cost. You qualify for free state tax filing if any or all of the following apply:
See taxfreedom.com for more details. E-File your Taxes with TurboTax Now. Its Quick, Easy, Secure and Free.
Refund, credit, or zero returns:
Michigan Department of Treasury
Lansing, MI 48956
Payment:
Michigan Department of Treasury
Lansing, MI 48929
If your permanent home was in Michigan, you are a Michigan resident. A permanent home can be defined as the place you come back to after going away. A temporary absence from your permanent home, such as spending the winter in a southern state, does not make you a part-year resident of the state that your permanent home is in.
If you are a Michigan resident you need to file a return with Michigan if you had to file a federal return. You will use Form MI-1040 and the provided instructions to file your return.
If you moved into or out of Michigan during the tax year you are a part-year resident. Part-year residents need to pay tax on all income earned, received, or accrued while they were living in Michigan. To file as a part-year resident attach your Schedule NR to Form MI-1040. For additional information on how to file a return as a part-year resident refer to MI-1040 Instructions. Please not you made need to pay taxes on income that is derived from Michigan sources while you are a nonresident. For more information check the Nonresidents who sold property in that state and Nonresidents who worked in that state sections for Michigan.
If you are a Michigan resident and earned income from a Canadian province or a state besides Illinois, Indiana, Kentucky, Minnesota, Ohio, or Wisconsin the income you earned will be taxed by Michigan. This is because all income earned by Michigan residents is subject to tax, no matter where it is earned, except income earned from out-of-state business activity. To avoid facing dual taxation on income earned outside of the state of Michigan you may claim a credit on your Michigan return using Schedule 2. You may not use such a credit however with Illinois, Indiana, Kentucky, Minnesota, Ohio, or Wisconsin because reciprocal agreements state that those states won’t tax Michigan residents and Michigan will not tax their residents. If one of these states does hold income that was earned in that state in error from a Michigan resident it becomes the responsibility of the Michigan resident to get a refund by filing a nonresident tax return.
For more information on reciprocal agreements with certain states see RAB 1988-17 (attached below).
If you are a nonresident of Michigan you need to file a return for all salary, wages, and compensation for work performed in Michigan. If you are a nonresident of Michigan you must file a return using Form MI-1040 and Schedule NR.
If you are a resident of Illinois, Indiana, Kentucky, Minnesota, Ohio, or Wisconsin the above does not apply to you because you will not be taxed on by Michigan due to reciprocal agreements with your state. Please note that these agreements only pertain to salaries, wages and other employee compensation. All other taxable income that comes from Michigan sources will still be taxed by Michigan. For more information on reciprocal agreements see RAB 1988-17 (attached below). For more information on what counts as taxable income see List of Taxable Income (attached below).
If you are a Illinois, Indiana, Kentucky, Minnesota, Ohio or Wisconsin resident and Michigan is holding income that was earned in Michigan in error you will need to file Form MI-1040 and Schedule NR to get a refund.
All gambling winnings including prizes won from Michigan casinos or racetracks, must be reported to Michigan using Form MI-1040, regardless of residency. This is because the reciprocal agreements that exist for wages and salaries with certain states do not apply for gambling winnings. Additionally nonresidents must file a Michigan income tax return for all Taxable Income derived from Michigan sources. To find out what qualifies as Taxable Income see the List of Taxable Income (attached).