Frequently Asked Questions MI - TaxGarden 

Personal Tax FAQ

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What is the filing requirement for the State of Michigan?
When a taxpayer files federal income tax return, he/she is also required to file the Michigan income tax return. Michigan income tax return must be filed if the federal adjusted gross income (AGI) is greater than the personal exemption amount on the Michigan income tax return.
What is School District Code?
The School District Code is a code number of the nearest public school of the county where you lived in Michigan as of the last day of the year. This Code number can be found in your property tax statement.
What is Non- Homestead Property Tax Millage?
Millage rate is the rate at which property taxes are levied on the Non- Homestead Property that you lived in Michigan.
What to do when you receive another W-2 after filing the return?
If your federal adjusted gross income or the allowable exemptions needs to be changes or is wrong, Michigan law requires you to amend your return.
For how long can someone postpone claiming an income tax refund, property tax credit or home heating credit for a prior year?
Usually it is four years from the due date of the original return to claim an income tax refund or homestead property tax credit.
What can be done whena bill is received but there is no tax owe amount?
If a tax bill is received when there is no tax owe amount,this information must be passed on with proof to support the claim. A letter explaining why the tax is not due along with your account number/social security number needs to be sent. If in case the tax amount was already paid, then a legible copy of the front and back of the canceled check or money order will have to be sent along with the letter to the address on the bill that was received.
Where to send Michigan tax payment and correspondence?
Mail payment and correspondence should be sent to the below address:
Michigan Department of Treasury,
Office of Collections,
P.O. Box 30199,
Lansing, MI 48909-7699.
How to apply for a penalty waiver?
Request for waiver of penalty must be submitted in writing and must have clear valid reason for late payment of tax due. If the taxpayer can validatelate payment and meet the reasonable cause criteria as outlined in the Revenue Administrative’ s Penalty Provisions, the Department may waive the penalty charge. Waiver of penalty request mail must be sent to the below address:
Michigan Department of Treasury,
Office of Collections,
P.O. Box 30199,
Lansing, MI 48909-7699.
Can someone in a college facility claim the Home Heating Credit in their return?
Taxpaying college students living in college facility are not eligible for the Home Heating Credit as it is not their permanent home of residence.
To claim the credit, taxpaying college students should fulfill the following eligibilities:
  • You are not a full-time student who is claimed as a dependent on another person's income tax return.
  • You do not live in college or university operated accommodation.
  • Your homestead is in Michigan.
  • You were contracted to pay rent or own the home where you live.
  • Your income is within the income limits listed in Tables A and B on page 11 of the MI-1040CR-7 Home Heating Credit Claim Instructions.
Is the income earned while as a college student taxable?
All salaries, wages, and commissions earned in Michigan are subject to Michigan income tax regardless of your residency status (resident, part-year resident or nonresident) with the exception of residents of reciprocal States.
What are the States that has signed the Reciprocal State Agreement with Michigan?
States having a reciprocal agreement with Michigan are Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin. Residents of these states are not required to pay tax to Michigan on income earned in Michigan; they pay tax to their state of residency.
Will someone be considered a Michigan resident if they attend a Michigan college/university from another State?
No. As an out-of-state student who live in Michigan only for attending school, they are not considered as a Michigan resident or part-year resident.
How to get the copies of the return that was filed previously?
A request should be raised for the previous year’s return copy by submitting theapplication in writing to the below address.
Michigan Department of Treasury
Customer Contact Division
P O Box 30058
Lansing, MI 48909
Please include your complete name, address, daytime phone number, social security number and tax year. There is no charge for this service, but allow a minimum of 30 days for delivery.
How to get copies of W-2?
The first thing to do is to ask for a copy of W-2 from the employer. If the employer is unable to provide a copy, a request must be raisedfor a substitute income statement from the Internal Revenue Service. It is important to note that the copy you get from the IRS will contain only federal information and not the State withholding details.
What to do if the RTN in the return is incorrect?
No changes can be made to the routing transit number (RTN) once the return has been received. If the RTN is incorrect and the financial institution has returned the deposit, a check will be mailed within 45 days
What must be done if the account number in the return is incorrect?
No changes can be made to the account number once your return has been received.
  • If it is a valid account number, the financial institution may catch the error and deposit it into your account.
  • If the deposit goes into a valid account number as indicated on your return, but it is not your account, it needs to be resolved by you and your financial institution.
  • If your account number is incorrect and the financial institution has returned the deposit, a check will be mailed within 45 days to the address on record.
What if there is a mistake in an e-filed Michigan Return?
If there is an error on an electronically filed return for the tax year 2012 or later, taxpayer must file a paper copy of the MI-1040X-12 for Amended Income Tax Return. For all 2011 and prior years amendments form MI-1040X should beused.
What if I don’t file and make the required estimated tax payments?
If you don’t file and make the required estimated tax payments, you will receive a tax bill or an assessment issued by the Michigan Department of Treasury for penalty and interest.
What is your property tax amount?
Property tax amount is the exact amount of property tax imposed or billed over your homestead property. The property tax credit is based on taxes levied for the year of the claim regardless of when the taxes are paid.
What is Alternate Housing Facility?
Alternate Housing Facilities are special type of properties in which people with special requirements may live and have supervision or assistance. If you lived in a licensed care facility only part of the year, you could qualify for a few types of credits for the period you lived outside the facility.
What is Subsidized Housing?
Subsidized Housing or Affordable Housing is a government funded assistance program intended to help people in need with low to moderate incomes. Subsidized housing is owned and operated by private owners who receive subsidies for renting out the property to lowincome earners.
What is Service Fee Housing?
This is a type of property for which Service Fee is paid instead of property taxes as an agreement between a municipality and a property owner.
What is ALS of Michigan Fund?
This is a fund that is allotted for ALS of Michigan and its duty of providing critically needed services to people with ALS (Lou Gehrig’s disease), their families and caregivers.
What is Alzheimer’s Association of Michigan?
This is a fund that is allotted for Alzheimer’s Association of Michigan and its mission of providing critically needed services to people with the condition through vital research and essential support programs and services.
What is Animal Welfare Fund?
This is a special fund is not just for the animal lovers but also for taxpayer who wish to donate a part of what they earned for the helpless animal around them. This is fun is allotted for providing financial support for spay/neuter and animal cruelty investigation programs.
What is Children of Veterans Tuition Grant Program?
This is a fund designed to provide undergraduate tuition assistance to natural or adopted child of a Michigan veteran. A student who is a natural or adopted child of a Michigan veteran who is a legal resident of Michigan before orafter entering military service is eligible for the program.
What is Children’s Trust Fund?
This is a special fund that supports and funds evidence-based community programs committed to the prevention of child abuse. Taxpayers can donate a minimum of $1 while filing tax to help children who are in distress for a better lifestyle.
What is Military Family Relief Fund?
This is a special fund that offersallowances to qualifying families of military members in either the Michigan National Guard or Reserves. This contribution amount isentered in line number 21 of the Individual Income Tax Return form MI-1040.