Treasury is reviewing the recently enacted tax law changes, including the new Marijuana Wholesale Tax. Developing clear and accurate information for tax stakeholders is our top priority. This guidance will be posted to our website in the coming weeks.
Be aware! Scam text messages are circulating, falsely claiming to be from the Michigan Department of Treasury. These fraudulent messages attempt to deceive you into providing or updating your bank account information. Treasury will never text you for sensitive data. If you receive such a message, do not respond, click any links, or share any information. Delete it immediately.
School Review and Fiscal Accountability
financing programs to meet the needs of local units of government including: Cities, Villages, Townships, Counties, and various special purpose units.
School Bond Qualification & Loan
the bond process, finance teams, lost bonds and links to other resources.
Reports on the various taxes that the Department of Treasury administers as well as Treasury's annual reports and other revenue and budget reports.
A Revenue Administrative Bulletin (RAB) is a directive issued by the Bureau of Tax Policy. Its purpose is to promote uniform application of tax laws throughout the State by the Bureau of Tax Policy personnel and provide information and guidance to taxpayers.
Internal Policy Directives are prepared to provide guidance to department staff to insure uniformity in tax administration.
The various Divisions of the Department of Treasury are guided by State statutes, Administrative Rules, Court cases, Revenue Administrative Bureau Bulletins, Property Tax Commission Bulletins and Letter Rulings.
Search is currently unavailable. Please try again later.
The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer.
MICHIGAN DEPARTMENT OF TREASURY
REVENUE ADMINISTRATIVE BULLETIN 1989-12
Approved: March 31, 1989
INCOME TAX FILING REQUIREMENTS, DEDUCTIONS, AND
EXEMPTIONS FOR DEPENDENT INDIVIDUALS
RAB-89-12. This Bulletin explains the filing requirements, deductions, and exemptions available to a taxpayer who is claimed as a dependent on another taxpayer's income tax return.
Filing Requirements and Deductions
For a tax year beginning after 1986, Michigan's Income Tax Act provides that a taxpayer having an adjusted gross income of $1,500.00 or less and whose personal exemption is allowed to another federal taxpayer under Section 151 of the Internal Revenue Code (IRC) is exempt from Michigan income tax. [MCL 206.52] This person is not required to file an income tax return.
A taxpayer having an adjusted gross income of $1,500.01 or more and whose personal exemption is allowed to another federal taxpayer under Section 151 of the IRC is required to file a Michigan income tax return. However, under Michigan's Income Tax Act, this individual is allowed to claim a deduction of $500.00 from taxable income for a tax year beginning in 1988. [MCL 206.30(4)] The deduction is increased to $1,000.00 for tax years beginning after 1988.
Exemptions
A personal exemption cannot be claimed by a dependent if another taxpayer can claim a dependency exemption for that person. This is true even when the dependent taxpayer is not actually claimed as a dependent on the other's return. A dependent who may not claim a regular personal exemption still may claim one or more of the additional exemptions provided under Michigan's Income Tax. [MCL 206.30(3)(a) through (d)]
The additional exemptions are:
Example
A college student is eligible to be claimed as a dependent by his parents on their 1988 Federal income tax return. The student, who is considered deaf as defined in Michigan's Income Tax Act [MCL 206.30(3)(b)] is required to file a Michigan income tax return because the student has adjusted gross income of $1,800.00. The student is allowed to claim a deduction of $500.00 under Michigan's Income Tax Act [MCL 206.30(4)] and an exemption for $1,200.00 as a deaf individual under Michigan's Income Tax Act [MCL 206.30(3)(b)].
Although Michigan's Income Tax Act [MCL 206.30(2)] disallows a personal exemption to an individual claimed on another person's Federal income tax return, the special exemptions described in Michigan's Income Tax Act [MCL 206.30(3)] are allowed to any taxpayer required to file a return. These exemptions are not conditioned on whether a taxpayer is entitled to a federal exemption.