How to Claim your 2011 City Income Tax Credit

Credit is no longer available after December 31, 2011

The credit for Income tax paid to Michigan cities (also referred to as the city income tax credit) will be claimed on Michigan Schedule 2 Nonrefundable Credits, which is found on the back of the 2011 Michigan Schedule 1 Additions and Subtractions. Please use the worksheet and/or the estimator below to determine the amounts to be entered on line 1 of Schedule 2.

If you choose to figure your City Income Tax Credit manually (not using the estimator below) please review the instructions for Schedule 2 and complete the Worksheet - City Income Tax Credit.

Instructions for the City Income Tax Credit Line 1 of Schedule 2:

Everyone who pays Michigan income tax is allowed partial credit for income tax paid to Michigan cities. Use the Worksheet below to compute the credit.

Enter your net city income tax paid from the Worksheet, line F on Schedule 2, line 1a.
Enter your eligible city income tax credit from the Worksheet, Step 2 on Schedule 2, line 1b.

*By answering a few questions and entering the corresponding figures, the estimator below can assist you with determining the eligible amount of your City Income Tax Credit which should be entered on Schedule 2, line 1b.

On Schedule 2, line 1a, enter your net city income tax paid from line 5 of the City Tax Credit Estimator.
On Schedule 2, line 1b, enter your eligible city income tax credit from line 6 of the City Tax Credit Estimator.

City Tax Estimator

1. City income tax withheld from wages in 2011: 2. Amount of tax paid with a Michigan city income tax return filed in 2011: (do not include penalty and interest) + 3. Estimated city income tax payments made in 2011: + Subtotal   Add Lines 1-3: 4. City income tax refund(s) received in 2011: - 5. Total City Tax Paid: Enter this amount on Schedule 2, line 1a. 6. Eligible City Income Tax Credit: Enter this amount on Schedule 2, line 1b.

Please remember to a copy of this screen once your estimation is complete. Keep this copy with your tax records/documentation for the appropriate year. Do not use the "Printer Friendly" version as it will delete all figures from your estimation results.

DISCLAIMER:
This estimator provides an unofficial estimate and has no legal bearing on any future tax liability. Interactive estimators are made available to you as self-help tools for your independent use.

NOTE: The information you provide is anonymous and will only be used for purposes of this estimation. It will not be shared, stored or used in any other way, nor can it be used to identify the individual who enters it. It will be discarded when you exit this program.

View instructions for Schedule 2

2011 Michigan Schedule 2 Nonrefundable Credits form