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4. Who may file a composite return?

A flow-through entity (FTE) that has generated Michigan taxable income (loss) may choose to file a Michigan Composite Individual Income Tax Return (Form 807) on behalf of its nonresident members who elect to participate**. An intermediate FTE may also be eligible to file a composite return (See “May an intermediate flow-through entity file a composite return?”).

** Limitations may apply on an intermediate FTE’s ability to participate in another FTE’s composite return if the intermediate FTE elected to pay Michigan flow-through entity tax. See Flow-Through Entity (FTE) Tax Credit FAQs.