New Developments for Tax Year 2015
Annual mailing of instruction booklets – The MI-1040, MI-1040CR-2, MI-1040CR-5 and MI-1040CR-7 instruction booklets will be mailed to taxpayers who paper filed their 2014 return on Michigan Department of Treasury forms. Taxpayers who e-filed or had a tax preparer complete their forms will not be mailed a booklet.
Forms and instructions may be viewed and/or downloaded from our Web site beginning in January 2016. In addition, commonly used forms will continue to be available at Michigan Department of Treasury offices, most public libraries, Northern Michigan post offices, and Michigan Department of Health and Human Services (MDHHS) county offices.
Note: Bulk forms are distributed to libraries and post offices throughout the state before they are available in Michigan Department of Treasury offices. Therefore forms may not be requested through the Michigan Department of Treasury customer contact center until mid-February.
Treasury Offset Program (TOP)
Beginning with the 2015 tax year, State of Michigan entered into an agreement with the Internal Revenue Service (IRS) to intercept, or offset, federal tax refunds and federal payments for delinquent State of Michigan income tax debts.
All pages of all forms must be completed and filed to be considered a complete return.
Tax form information changes for 2015:
- Authorized Representative Declaration (Power of Attorney) Form 151:
This revised form authorizes another person or corporation, (tax preparer, family member, etc.) as your representative in tax or debt matters before the State of Michigan.
- Michigan Individual Income Tax Return (MI-1040):
Special Exemption for Deaf, Blind, Hemiplegic, Paraplegic, Quadriplegic or Totally and Permanently Disabled: $2,600
- Schedule 1 Additions and Subtractions:
- Line 24 - Michigan Standard Deduction. Individuals born during the period January 1, 1946 through January 1, 1949, and reached age 67 on or before December 31, 2015 may be eligible for a subtraction of $20,000 for single filers or $40,000 for joint filers against all income, rather than solely against pension and retirement income. Note: Filers who qualify for the Michigan Standard Deduction should not complete form 4884.
- Line 26 - Dividend/interest/capital gains deduction for taxpayers 70 years and older.
This deduction is limited to $11,104 for single or married filing separately filers or $22,207 for joint filers, less any deduction for retirement benefits. (See page 14 in the MI-1040 Instruction Booklet)
- Pension Schedule (Form 4884):
- Taxpayers born before 1946 private pensions may be subtracted up to $49,811 for single or married filing separately filers and $99,623 for joint filers.
- Taxpayers born during the period January 1, 1946 through January 1, 1949 should not file form 4884. A single filer may subtract $20,000 and joint filers may subtract $40,000 for a Michigan Standard Deduction on Schedule 1, line 24.
- Taxpayers born after January 1, 1949 through December 31, 1952 may subtract $20,000 for single filers and $40,000 for married filing jointly
- Taxpayers born after 1952, pension is not deductible, unless the older of you or your spouse (if married filing jointly) was born on or after January 1, 1953 but before January 2, 1954, have reached age 62 and receive Social Security exempt retirement benefits due to employment with a governmental agency, you may be eligible for a pension and retirement deduction. For more information see Michigan Pension Schedule .
- Home Heating Credit
Standard Allowances and Income Ceilings for 2015 (See Tables A and B below). Note: The last day to file a 2015 Home Heating Credit is September 30, 2016. No filing extensions are allowed.
TABLE A: 2015 Home Heating Credit Standard Allowance
NOTE: If you lived in your homestead for less than 12 months, you must prorate your standard allowance (see instructions).
(from line 13h)
|0 or 1||$454||$12,956|
+ $160 for each
|+ $4,571 for each
exemption over 6
TABLE B: Exemptions and Maximum Income for the Alternate Credit Computation
(from line 13h)
|0 or 1||$13,727|
|4 or more||$24,018|
Individual Income Tax (IIT) filers have the option of making payments electronically using the Michigan Department of Treasury’s e-Payments system. Payments can be made by using direct debit, credit card
or debit card.
E-file lets you submit your Michigan, City of Detroit and federal individual income tax returns using a computer instead of mailing paper returns. You can e-file your Michigan and/or City of Detroit return separately from your federal return (State Standalone e-file). If you choose to e-file your Michigan tax return, visit Treasury’s Web site at MIfastfile.org for a list of e-file resources, how to find an e-file provider, and more information on free e-file services.
The Internal Revenue Service (IRS) will begin accepting federal tax returns on January 19, 2016.
There are many free tax preparation services available. To find out if you qualify and/or to locate a free preparation site near you, visit the following sites:
- Free tax preparation assistance offered by IRS Volunteer Income Tax Assistance (VITA) and
the Tax Counseling for the elderly programs. Enter your zip code to locate a site near you. http://irs.treasury.gov/freetaxprep/
- You may be eligible to prepare and e-file your federal return for free with Free File through
the IRS Web site.
Pension Estimator and Dividend/ Interest/Capital Gain Estimator
Certain amounts of pension distributions and dividend/interest/capital gains can be subtracted from Michigan taxable income. An estimator is available on Treasury's Web site to assist taxpayers in determining what amounts can be subtracted and to assist in making income tax return preparation easier.
Property Tax Credits / Refunds
Michigan homestead property tax credit and State refunds received in 2015 may be taxable on your 2015 U.S. 1040. If you claimed an itemized deduction for property or Michigan income taxes on your 2014 U.S. 1040 and received a refund in 2015 from the State for a portion of those taxes, you must include that refund as income on your 2015 U.S. 1040. If you have questions about the taxability (for federal tax purposes) of your refunds, call the IRS at 800-829-1040.
Filing Extension Granted for Military Personnel Serving in a Combat Zone
United States military personnel serving in a combat zone on April 15, 2016, will be given 180 days after leaving the combat zone to file their federal and State tax returns and will be exempt from penalties and interest. When e-filing, service men and women serving in combat zones should enter the words "Combat Zone" in the preparer notes. When filing a paper return, print "Combat Zone" in ink on the top of page 1. View More Information for Members of the Military
MI-1040ES Forms No Longer Mailed to Taxpayers Using Preparers
Treasury does not mail preprinted Estimated Individual Income Tax Vouchers to taxpayers who use tax preparers to complete and file their income tax returns.
Certain Renaissance Zones, along with the tax benefits, will continue to be phased out. See instructions for Schedule 1, line 15, on page 12 of the MI-1040 instruction booklet.
Statute of Limitations for Prior Year Returns and Credits
A taxpayer must file to claim a refund with the Michigan Department of Treasury within four years from the date set for the filing of the original return. For example: You must file a 2011 Michigan Individual Income Tax Return (MI-1040/MI-1040X) and/or a Homestead Property Tax Credit (MI-1040CR/ MI-1040CR-2) on or before April 15, 2016.