Emergency-related state tax relief available for taxpayers located in twelve northern Michigan counties impacted by March 2025 storms.
New Developments for Tax Year 2023
New Developments for Tax Year 2023
Homestead Property Tax Credit - Incorrect Printed Value
The printed tax year 2023 booklets contain an incorrect value. The Homestead Property Tax Credit maximum taxable value for tax year 2023 is $154,400. This has been corrected on the Taxes website and all electronic versions of the booklets and forms.
Tax Year Updates
General
| Tax Rate | 4.05% |
|---|---|
| Personal Exemption Amount | $5,400 |
| Special Exemption Note: Totally and permanently disabled may not be claimed if the taxpayer was age 66 by June 30, 2023 |
$3,100 |
| Qualified Disabled Veteran Deduction | $400 |
| Exemption for Number of Certificates of Stillbirth from MDHHS | $5,400 |
2023 Retirement & Pension Estimator
Senior Interest, Dividend and Capital Gains
| Single Filer | $13,712 | Jointly Filed | $27,424 |
Michigan Retirement & Pension Deduction – Tiered Structure Subtraction
| Single Filer | Jointly Filed | ||
|---|---|---|---|
| born before 1946 |
private pension limit up to | $61,518 | $123,036 |
| public pension limit | unlimited | unlimited | |
| born 1946 - 1952 | standard deduction against all income 1 | $20,000 | $40,000 |
| born 1953 - 1956 | standard deduction election 1 2 | $20,000 | $40,000 |
| born after 1956 | pension not deductible 1 3 | $0 | $0 |
1 Taxpayers who receive benefits from a deceased spouse, see “Retirement Benefits from a Deceased Spouse” and “Retirement Benefits Election for Tier 2 and Tier 3 Surviving Spouses” in the MI-1040 instruction booklet.
2 Against all income or personal exemption amount and Social Security, Military compensation, Michigan National Guard retirement benefits and railroad retirement benefits included in AGI.
3 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.
Michigan Retirement and Pension Deduction – Qualified Fire, Police, and Correction Retiree Subtraction
Read Retirement and Pension Benefits for information on who qualifies for this subtraction.
| Single Filer | Jointly Filed | ||
|---|---|---|---|
| no age requirement must be a qualified distribution |
private pension limit | $61,518 | $123,036 |
| public pension limit | unlimited | unlimited | |
Michigan Retirement and Pension Deduction – Phase-In Subtraction
Read Retirement and Pension Benefits for information on who qualifies for this subtraction.
| Single Filer | Jointly Filed | ||
|---|---|---|---|
| born January 1, 1946 - December 31, 1958 | up to 25% of the private pension limit | $15,380 | $30,759 |
Homestead Property Tax Credit
| Maximum Taxable Value | $154,400 |
|---|---|
| Total Household Resources (THR) Limit | $67,300 |
| Phase-out begins when Total Household Resources exceeds | $58,300 |
| Credit Limit | $1,700 |
Note: Totally and permanently disabled may not be claimed if claimant was age 66 by June 30, 2023.
| TOTAL HOUSEHOLD RESOURCES (THR) | PERCENTAGE |
|---|---|
| $58,301 or less | 100% (1.00) |
| $58,301 - $59,300 | 90% (0.90) |
| $59,301 - $60,300 | 80% (0.80) |
| $60,301 - $61,300 | 70% (0.70) |
| $61,301 - $62,300 | 60% (0.60) |
| $62,301 - $63,300 | 50% (0.50) |
| $63,301 - $64,300 | 40% (0.40) |
| $64,301 - $65,300 | 30% (0.30) |
| $65,301 - $66,300 | 20% (0.20) |
| $66,301 - $67,300 | 10% (0.10) |
| $67,301 - above | 0% (0.00) |
Home Heating Costs
| Maximum Heating Costs | $3,500 |
|---|---|
| New Heat Provider | Wesco, Inc. |
Note: Totally and permanently disabled may not be claimed if claimant was age 66 by June 30, 2023.
Home Heating Credit Tables
Standard Allowance
| Exemptions | Standard Allowance | Income Ceiling |
|---|---|---|
| 0 or 1 | $562 | $16,043 |
| 2 | $760 | $21,700 |
| 3 | $958 | $27,357 |
| 4 | $1,156 | $33,013 |
| 5 | $1,354 | $38,671 |
| 6 | $1,552 | $44,329 |
| +$198 for each exemption over 6 | +$5,657 for each exemption over 6 |
Alternate Credit Computation
| Exemptions | Income Ceiling |
|---|---|
| 0 or 1 | $17,534 |
| 2 | $23,595 |
| 3 | $29,661 |
| 4 or more | $31,818 |
New Forms and Form Updates
Michigan residents now have the option to join Michigan’s organ donor registry when they file their individual income tax return (MI-1040). The Anatomical Gift Donor Registry Schedule was added to Voluntary Contributions, Form 4642. Anyone can opt into this voluntary contribution. Individuals who have previously elected to donate their organs do not need to complete the Anatomical Gift Donor Registry Schedule.
Annual Instruction Booklet Mailings
If you filed a paper return last tax season (tax year 2022) the following forms were mailed to you:
- MI-1040 (Michigan Individual Income Tax Return)
- MI-1040CR-2 (Homestead Property Tax Credit Claim for Veterans and Blind People)
- MI-1040CR-5 (Farmland Preservation Tax Credit)
- MI-1040CR-7 (Home Heating Credit Claim)
Taxpayers who e-filed or had a tax preparer complete their forms will not be mailed any booklets. You can find tax year 2023 forms and instructions on Treasury’s Taxes website or in the following places:
- most public libraries.
- post offices in Northern Michigan.
- Michigan Department of Health and Human Services (MDHHS) county offices.
You can call the Treasury Individual Income Tax Contact Center to request forms be mailed to you, however, this service is not available until mid-February.
Other Developments
Payment Processing System Changes
Treasury is able to offer electronic tax payment options by utilizing our banking contractor’s payment platform. In September 2023, JP Morgan Chase began launching refreshed payment processing platforms for Treasury systems, including Individual Income Tax. Their new payment system, Paymentus, takes advantage of the latest design and technology while prioritizing continuity of electronic payment access and minimal disruption to normal processes. Visit Pay Income Taxes Online to make a Michigan individual income tax payment by check, debit, or credit as well as confirm electronic payment status.
IVR System
The Income Tax Automated Call System (IIT IVR) is the system that answers the Individual Income Tax Customer Contact line (517-636-4486) and directs calls to ensure that taxpayers receive accurate, timely information from Treasury representatives. Please share feedback about your experience using this system by taking the Income Tax Automated Call System Survey.
Taxpayer Rights & Responsibilities
Treasury Offset Program (TOP)
Treasury has entered into an agreement with the IRS to intercept, or offset, federal tax refunds and payments for Michigan Department of Treasury income tax debts. For more information, visit Treasury Offset Program.
Property Tax Credits / Refunds
Michigan homestead property tax credit and state refunds from the Michigan Department of Treasury received in 2023 may be taxable on your 2023 U.S. 1040. If you have questions about the taxability of your property tax credit or state refunds for federal tax purposes, call the IRS at 800-829-1040.
Statute of Limitations for Prior Year Returns and Credits
A taxpayer has 4 years from the due date of the original return to file and claim a refund with the Michigan Department of Treasury. For example, you must file the 2019 Michigan Individual Income Tax Return (MI-1040/MI-1040X-12) and/or a Homestead Property Tax Credit (MI-1040CR/MI-1040CR-2) on or before July 15, 2024.
Contacting Treasury
Taxpayers and Representatives with Power of Attorney (Form 151) Authorization:
Follow the instructions on Prepare to Contact Treasury
Tax Preparers with Check-the-Box Authorization:
Check-the-Box Authorization is applicable only to the individual named as the preparer on the tax return and does not extend to others in the preparer’s office or firm. This authorization does not take the place of a form designating power of attorney. Check-the-box authorization on a tax return authorizes Treasury to communicate with the tax preparer concerning the contents of the return they prepared. In addition, it authorizes the tax preparer to:
- provide Treasury with information missing from the return.
- call Treasury to obtain information about the status of a return submitted for processing, the status of a refund, and payments related to the return.
- request copies of notices related to the return.
- respond to notices related to matters such as math errors, return preparation, and any adjustments made to the return.
To obtain information about an account from Treasury, you will need the following information from a taxpayer's return:
- tax preparer’s name
- tax preparer’s PTIN, FEIN, or SSN
- tax preparer’s and/or firm address