E-filingyourreturniseasy,fast,andsecure! 83%(morethan4million)ofallMichigantaxpayerschoosee-file. E-filedreturnsareusuallyprocessedwithin14businessdays(seepage3).Allow14daysbeforecheckingthestatusofyoure-filedreturn.

Taxpreparerswhocomplete11ormoreMichiganIndividualIncomeTaxreturnsarerequiredtoe-filealleligiblereturnssupportedbytheirsoftware(seepage3).

Freee-fileisavailable.Doyouqualify? Visitwww.MIfastfile.orgforalistofe-fileresources,howtofindane-fileprovider,andmoreinformationonfreee-fileservices.

This booklet is intended as a guide to help complete your return. It does not take the place of the law.

FILING DUE DATE: APRIL 17, 2018

W W W. M I C H I G A N . G OV/ TA X E S

W W W. M I FA S T F I L E .O R G

UNCLAIMED PROPERTY.TheMichiganDepartmentofTreasuryisholdingmillionsofdollarsinabandonedandunclaimedpropertybelongingtoMichiganresidents.Over the last four years, more than $375 million has been returned to rightful owners.TocheckifTreasuryisholdingfundsforyouoryourfamily,visitwww.michigan.gov/unclaimedproperty.

Individual Income Tax FORMS AND INSTRUCTIONS

MI-1040M

ICH

IGAN

201

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Help With Your Taxes New for 2017Amended Return. Beginning with tax year 2017, usethe Michigan Individual Income Tax Return (MI-1040)and Michigan Amended Return Explanation of Changes (ScheduleAMD)tofileanamendedMI-1040.Seepage7formoredetails.Michigan Standard Deduction. If theolderofyouoryourspouse(ifmarriedfilingjointly)wasbornduringtheperiodJanuary 1, 1946 through January 1, 1951, and reached theageof 67onor beforeDecember 31, 2017, youmaydeduct$20,000 for single or married filing separately filers or$40,000 for joint filers against all income, rather thansolely against retirement and pension income. Taxpayersthat qualify for the Michigan Standard Deduction are noteligible to deduct retirement and pension income on theMichigan Pension Schedule(Form4884).Expanded Subtraction for Retirement Benefits. If theolder of you or your spouse (if married filing jointly) wasbornonorafterJanuary1,1953butbeforeJanuary2,1956,have reached age 62 and receive Social Security exemptretirementbenefitsdue toemploymentwithagovernmentalagency, you may be eligible for a retirement and pensiondeduction. For more information see Michigan Pension Schedule(Form4884).

City of DetroitIn January 2016, the Michigan Department of Treasurybegan processing City of Detroit Individual Income TaxReturns.YourCityofDetroitreturnmaybefiledwithyourMichiganreturn.Formoreinformationandinstructionsvisit www.michigan.gov/citytax.Tax AssistanceThe Michigan Department of Treasury (Treasury) offersa variety of services designed to assist you, and most areavailable24hoursaday,sevendaysaweek.

IMPORTANT: To obtain information about youraccount using the Internet and Telephone Options youwillneedthefollowinginformationfromyourreturn:• SocialSecuritynumber(SSN)oftheprimaryfiler(the

filerlistedfirstonthereturn)• Taxyearofthereturn• Adjusted gross income (AGI) or total household

resources• Filing status (single, married filing jointly, married

filingseparately).

Internet Optionswww.michigan.gov/incometaxFindthefollowinginformationonthisWebsite:• Currentyearformsandinstructions• Answerstomanytaxpreparationquestions• Mostcommonlyusedtaxforms• Freeassistanceinpreparingyourreturn• Retirement, Pension, Interest, Dividends, Capital Gain

Estimators• Pay your tax due on the MI-1040, and make quarterly

estimatedincometaxandindividualincometaxextensionpayments

• Othertaxresources.Select“CheckMyIncomeTaxInformation”whereyoucan:• Checkthestatusofyourreturn• Checkestimatedpaymentsyoumadeduringtheyear• CheckthestatusoflettersyouhavesenttoTreasury• Changeyouraddress• Askaspecificquestionaboutyouraccount.Telephone Options517-636-4486Automated Information ServiceWithTreasury’sautomatedphonesystem,youcan:• Requestthestatusofyourrefund• CheckthestatusoflettersyouhavesenttoTreasury• Requestinformationonestimatedpayments• Ordercurrenttaxyearforms.While most questions can be answered by the AutomatedInformation Service, customer service representatives areavailablefrom8a.m.to4:45p.m.,MondaythroughFriday.Assistance is available using TTY through the MichiganRelayServicebycalling711.Printedmaterialinanalternateformatmaybeobtainedbycalling517-636-4486.

FormsFind tax forms using the Internet and Telephone Optionslistedonthispage.Commonlyusedformsarealsoavailableat Treasury offices (see back cover), most public libraries,NorthernMichigan post offices, andMichigan DepartmentofHealthandHumanServices(MDHHS)countyoffices.

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General InformationAdjusted Gross Income (AGI)Throughout this booklet, Treasury refers to adjusted grossincome as AGI. When AGI is asked for, copy your AGIdirectlyfromyourU.S.Form 1040,U.S.Form1040A,orU.S.Form1040EZ.Tax Rate, Exemption Allowances, and Deductions for Retirees and SeniorsTheincometaxratefor2017is4.25percent.For tax year 2017, the personal exemption allowance is$4,000, the special exemption allowance for deaf, blind,hemiplegic, paraplegic, quadriplegic, or totally andpermanentlydisabledis$2,600andtheexemptionallowanceforqualifieddisabledveteransis$400.Seepage9formoreinformation.Retirement and pension benefits included in AGI from apension or an Individual Retirement Account (IRA) maybe deductible. See Form 4884 instructions beginning on page15forfurtherdetailsregardingretirementandpensionbenefitdeductionsbasedonyearofbirthandfilingstatus.Seniorcitizensbornbefore1946maybeabletodeductpartoftheirinterest,dividends,andcapitalgainsthatareincludedin AGI. For 2017, the deduction is limited to a maximumof $11,259 for single filers and $22,518 for joint filers. SeeMichigan Schedule 1 (Schedule1)instructionsbeginningonpage12forfurtherdetailsregardingdividend/interest/capitalgainsdeductions.Filing Extension Granted for Military Personnel Serving in a Combat ZoneUnited States military personnel serving in a combat zoneonApril 17, 2018,will be given 180 days after leaving thecombat zone to file their federal and State tax returns andwill be exempt from penalties and interest.When e-filing,service men and women serving in combat zones shouldenterthewords“Combat Zone”inthepreparernotes.Whenfilingapaperreturn,print“Combat Zone”ininkonthetopofpage1oftheMI-1040.Appeals of Adjusted Refunds or CreditsTaxpayershave60daysfromtheissuanceofrefunddenials,refund adjustments, or Treasury decisions (other than finalassessment), that may be appealed under Section 21 of theRevenueAct,torequestinformalconferences.Choose e-file Instead of Paper Returns. Get Your Refund Fast!E-filing eliminates many of the errors that lengthenprocessing times. E-filed returns are usually processedwithin 14 days. Tax preparers who complete 11 or moreindividual income tax returns are required to e-file alleligible returns. Visit www.MIfastfile.org for a list ofe-file resources, how to find an e-file provider, and moreinformationonfreee-fileservices.Whene-filing,donotmailapapercopyofyourreturn.Property Tax Credits/RefundsA reminder from the Internal Revenue Service (IRS): Michigan homestead property tax credit and homesteadexemptionrefundsreceived in2017maybe taxableonyour

2017U.S.Form1040. Ifyouclaimedan itemizeddeductionfor property taxes on your 2016 U.S. Form 1040 and thenreceived a refund in 2017 from the State or your local unitofgovernmentforaportionofthosetaxes,youmustincludethat refundas incomeonyour2017U.S.Form1040. Ifyouhavequestionsaboutthetaxability(forfederaltaxpurposes)oftherefunds,calltheIRSat1-800-829-1040.What You Should Know About Your Michigan 1099-G If you claimed itemized deductions on your 2016 federalincome tax return and received a Michigan tax refundin 2017, you will be mailed a 2017 Michigan 1099-G inearly 2018 that shows the amount of your 2016 refund thatwas issued in 2017. The refund amount will include anyamounts credited forward to 2017 estimated tax, prior yearrefunds issued in2017, refundamounts interceptedforbacktax assessments or other debts (such as child support orcourt-ordered garnishments), and any portion of a refundassigned topayuse taxoranyamountyoucontributedasavoluntarycontribution. Therefundamountwillnot includehomesteadpropertytaxcredits,earnedincometaxcredits,orother refundable tax credits claimed on yourMI-1040.The 1099-G is not a bill. Visitwww.michigan.gov/taxesformoreinformationaboutyourMichigan1099-G.A Note About DebtsBy law, any money you owe to the State and other stateagenciesmustbedeductedfromyourrefundorcreditbeforeitisissued.Debtsincludemoneyyouoweforpast-duetaxes,student loans, child support due to theFriendof theCourt,an IRS levy,money due to a state agency, a court-orderedgarnishment, or other court orders. Taxpayers who aremarried filing jointlymay receive an Income Allocation for Non-Obligated Spouse (Form 743) after the return is filed.Completingandfilingthisformmaylimittheportionoftherefundthatcanbeappliedtoadebt.IfTreasuryappliesallorpartofyourrefundtoanyofthesedebts,youwillreceivealetterofexplanation.Who Must File a ReturnFilea return ifyouowe tax, areduea refund,oryourAGIexceeds your exemption allowance. You should also file aMichigan return if you file a federal return, even if youdonot owe Michigan tax. This will eliminate unnecessarycorrespondencefromTreasury.If your parents (or someone else) can claim you as adependenton their return andyourAGI is$1,500or less ifsingleormarriedfilingseparatelyor$3,000orlessiffilingajointreturn,youdonotneedtofileareturnunlessyouareclaimingarefundofwithholding.Important:Ifyourincomesubjecttotax(MI-1040,line14)islessthanyourpersonalexemptionallowance(line15)andMichiganincometaxwaswithheldfromyourearnings,youmustfileareturntoclaimarefundofthetaxwithheld. Who Must File a Joint ReturnIfyouareconsideredmarriedforfederaltaxpurposes,youmustfileyourMichiganreturnusingeitherthemarriedfilingjointlyor married filing separately filing status. This applies to allcoupleswhoaremarriedunderthelawsoftheStateofMichigan

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or under the lawsof another state. If you filed a joint federalincome tax return, youmust file a jointMichigan income taxreturn.Ifyouandyourspousefiledseparatefederalreturns,youmayfileseparateorjointMichiganreturns.When to File Your ReturnAlwayscompleteyour federal taxreturnbeforeyourMichiganreturn. You may file a Michigan return even if you are notrequiredtofileafederalreturn.YourreturnmustbepostmarkednolaterthanApril17,2018,toavoidpenaltyandinterest.Paymentmustbeincludedwithyourreturn. Make your check payable to “State of Michigan” andwrite the lastfourdigitsofyourSocialSecuritynumber(s)and“2017incometax”onthefrontofthecheck.If you cannot file before the due date and you owe tax, youmayfileanApplication for Extension of Time to File Michigan Tax Returns (Form 4) with your payment. This allows anextensionoftimetofile,butnottopay.PaymentisduenolaterthanApril17,2018,otherwisepenaltyandinterestmayapply.See page 5. If you are due a refund, you must file a returnwithinfouryearsoftheduedatetoobtaintherefund.Keepacopyofyourreturnandallsupportingschedulesforsixyears.Penalty and Interest Added for Filing and Paying LateIf you file and pay late, Treasury will add a penalty of5percentofthetaxdue.Afterthesecondmonth,penaltywillincrease by an additional 5 percent per month, or fraction

thereof,uptoamaximumof25percentofthetaxdue.Ifyoupaylate,youmustaddpenaltyandinteresttotheamountdue.Visitwww.michigan.gov/taxes forthelatestinterestrates.Identity TheftTax-related identity theft occurs when someone uses yourSocial Security number to file a tax return claiming afraudulent refund. Victims of tax-related identity theft canassist the Department of Treasury by following the stepslistedbelow:• Paperfileyourreturnandincludeallrequiredschedules.• Sendcopies,notoriginals,ofthefollowingdocuments: 1.Federalreturnandschedules(ifapplicable). 2.Identitytheftaffidavits(ifapplicable). 3.Governmentissuedphotoidentification. 4.W-2sand/or1099s.Even if the above steps are followed, the Department ofTreasurymayrequireadditionalidentityverificationandyoumaybeasked:• Tocomplete an identity confirmationquiz,which is a tool

Treasuryusestoassistintheprotectionoftaxpayersagainsttax-relatedidentitytheft.

• To provide additional supporting documentation asneeded.

Visitwww.michigan.gov/identitytheft formore informationregardingtax-relatedidentitytheft.

How to Complete and File Paper ReturnsCompleting Michigan FormsTreasury captures the information from paper income taxreturns using an Intelligent Character Recognition (ICR)process. If completing a paper return, avoid unnecessarydelays by following the guidelines below so your return isprocessedquicklyandaccurately.• Use black or blue ink. Donotusepencil,redink,orfelttip

pens.Donothighlightinformation.• Print using capital letters (UPPERCASE).Capitalletters

areeasiertorecognize.• Print numbers like this: 0123456789

Donotputaslashthroughthezero( )orseven( ).• Fill check boxes with an [X]. Donotuseacheckmark.• Leave lines/boxes blank if they do not apply or if the

amountiszerounlessotherwisedirected.• Do not write extra numbers, symbols, or notes on the

return, such as cents, dashes, decimal points, commas, ordollar signs. Enclose any explanations on a separate sheetunless you are instructed to write explanations on thereturn.

• Stay within the lines whenenteringinformationinboxes.• If a form is multiple pages, allpagesmustbefiled.• Report all amounts in whole dollars. Round down

amountsof49centsorless.Roundupamountsof50centsor more. If cents are entered on the form, they will betreatedaswholedollaramounts.

When You Have FinishedIf the tax preparer is someone other than the taxpayer, he orshe must enter the business name, address, and telephonenumber of the firm he or she represents and Preparer TaxIdentificationNumber(PTIN),FederalEmployerIdentificationNumber (FEIN), or Social Security number. Check the boxto indicate ifTreasurymaydiscussyour returnwithyour taxpreparer.Assemble your returns and attachments.Donotstapleyourcheck to your return. A sequence number is printed in theupper-rightcornerofthefollowingMichiganformstohelpyouassembletheminthecorrectorderbehindyourMI-1040:• Additions and Subtractions (Schedule1)• Nonresident and Part-Year Resident (ScheduleNR)• Farmland Preservation Tax Credit(MI-1040CR-5)• Schedule of Taxes and Allocation to Each Agreement

(ScheduleCR-5)• Property Tax Credit(MI-1040CRorMI-1040CR-2)• FederalSchedules(seeTable3,page59)• Schedule of Apportionment(MI-1040H)• Underpayment of Estimated Income Tax(MI-2210)• Withholding Tax Schedule (ScheduleW)• Adjustments of Capital Gains and Losses(MI-1040D)• Adjustments of Gains and Losses From Sales of Business

Property(MI-4797)• Voluntary Contributions Schedule(4642)• Sales and Other Dispositions of Capital Assets(MI-8949)• Pension Schedule (4884)• Pension Continuation Schedule(4973)

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• Married Filing Separately and Divorced or Separated Claimants Schedule(5049).

• Michigan Amended Return Explanation of Changes (ScheduleAMD)

If you are also filing a Home Heating Credit Claim (MI-1040CR-7), do not attach it to your return; fold it andleaveitlooseintheenvelope.IfyouarealsofilingaCityofDetroitreturn,donotstapleittoyourStateofMichiganreturn;folditandleaveit looseintheenvelope.Where to Mail Your ReturnMailrefund, credit, or zero duereturnsto:

MichiganDepartmentofTreasuryLansing,MI48956

Ifyouowe tax,mailyourreturnto:MichiganDepartmentofTreasuryLansing,MI48929

Make your check payable to “State of Michigan” andprint the last four digits of your Social Security number and“2017 income tax” on the front of your check. To ensureaccurate processing of your return, send one check for eachreturn.Donotstapleyourchecktoyourreturn.

Do not mail your 2017 return in the same envelope with a return for years prior to 2017; mail your 2017 return in a separate envelope.Important Reminders• Missing pages. TheMI-1040,MI-1040CR,MI-1040CR-2,

MI-1040CR-7, and MI-1040X-12 are multiple-page forms.AllpagesmustbecompletedandsubmittedforTreasurytoprocessthereturntimely.

• Use correct tax year forms. Forexample,donotusea2016formtofileyour2017return.

• Required attachments. If you do not include all therequired attachments with your return, your refundmaybe reduced, denied, or delayed. Send original forms.Donotsendphotocopies.

• Schedules received alone. Only the MI-1040, MI-1040CR,MI-104CR-2 andMI-1040CR-7 forms maybe filed alone. All other forms must be filed with acompletedMI-1040.

• Missing, incomplete, or applied for Social Security number. If you don’t have an SSN or an IndividualTaxpayer Identification Number (ITIN), apply for onethrough the IRS.Do not file yourMichigan return untilyouhavereceivedyourSSNorITIN.

Special SituationsExtensionsTorequestmoretimetofileyourMichigantaxreturn,sendapaymentofyourestimatedtaxtoTreasurywithacopyofyour federal extension (U.S. Form 4868) on or before theoriginal due date of your return. Treasury will extend theduedate toyournewfederalduedate. Ifyoudonothaveafederal extension, file anApplication for Extension of Time to File Michigan Tax Returns (Form4)withyourpayment.Treasury will not notify you of approval. Do not file an extension if you will be claiming a refund.An extension of time to file is not an extension of time to pay. Ifyoudonotpayenoughwithyourextension request,you must pay interest on the unpaid amount. Computeinterest from the original due date of the return. Interestis 1 percent above the prime rate and is adjusted on July 1and January 1. Visit www.michigan.gov/taxes for helpcalculatingthepenaltyandinterest.Youmaybe charged a penaltyof 10percent ormore if thebalancedueisnotpaidwithyourextensionrequest.WhenyoufileyourMI-1040,includeonline30theamountoftaxyoupaidwithyourextensionrequest.Includeacopyofyourfederalorstateextensionwithyourreturn.2018 Estimated PaymentsUsually, youmust make estimated income tax payments ifyouexpect toowemore than$500whenyoufileyour2018MI-1040.This is after crediting theproperty tax, farmland,anyother refundableornonrefundablecredits,andamountsyoupaidthroughwithholding.Common income sources which make estimated paymentsnecessary are self-employment income, salary, wages, orretirementbenefits ifyoudonothaveenough taxwithheld,

tips, lump sumpayments, unemployment benefits, dividendand interest income, income from the sale of property(capitalgains),businessincomeandrentalincome.Youmayaskyouremployertoincreaseyourwithholdingtocoverthetaxesonothertypesofincome.Estimated payments are due April 17, 2018; June 15, 2018;September 17, 2018; and January 15, 2019. If you are afiscal year filer, the due dates are the same as your federalestimatedpaymentduedates.If you made estimated payments for 2017 Treasury willsend you personalized vouchers for 2018, unless youused a tax preparer. Do not use vouchers intended foranother taxpayer. If you do not receive personalizedvouchers, use a tax preparer, or use tax preparationsoftware to complete your return, you can obtain aMichigan Estimated Individual Income Tax Voucher (MI-1040ES)fromTreasury’sWebsite.Exceptions. Ifyouexpect toowemore than$500,youmaynothavetomakeestimatedpaymentsifyouexpectyour2018withholdingtobeatleast:• 90percentofyourtotal2018tax,or• 100percentofyourtotal2017tax.• 110percentofyour total2017 tax if2017AGIwasmore

than$150,000iffilingjointorsingle($75,000ifyour2017filingstatusismarriedfilingseparately).

Total2017 tax is theamountonyour2017MI-1040, line21,lesstheamountonlines25,26,27band28.Farmers, fishermen or seafarers may have to makeestimated payments, but have different filing options. Ifat least two-thirds of your gross income is from farming,fishing,orseafaring,youmay:

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• Delay paying your first 2018 quarterly installment(MI-1040ES)untilaslateasJanuary152019,andpaytheentireamountofyour2018estimatedtaxdue,or

• Fileyour2018MI-1040returnandpaytheentireamountoftaxdueonorbeforeMarch1,2019.

Ifyouarea farmeror fishermanyouwillhave filedaU.S.Schedule F,Schedule C,orSchedule Etoreportincomefromtheseactivities.Wagesearnedasafarmemployeeorfromacorporatefarmdonot qualifyyouforthisexception.YouareconsideredaseafarerifyourwagesareexemptfromincometaxwithholdingunderTitle46,Shipping,USC,Sec.11108.Failure to make payments or underpayment of estimated payments. Ifyoufailtomakerequiredestimatedpayments,pay late, or underpay in any quarter, Treasurymay chargepenalty and interest. Penalty is 25 percent of the tax due(with a minimum of $25) for failing to make estimatedpaymentsor10percent(withaminimumof$10)forfailingto pay enough estimated payments or making estimatedpayments late. Interest is one percent above the prime rateandiscomputedmonthly.TherateisadjustedonJuly1andJanuary1.ResidencyResident. You are aMichigan resident ifMichigan is yourpermanent home. Your permanent home is the place youintend to return to whenever you go away. A temporaryabsence from Michigan, such as spending the winter in asouthernstate,doesnot makeyouapart-yearresident.Income earned by a Michigan resident in a nonreciprocalstate(see“ReciprocalStates”)orCanadianprovinceistaxedbyMichigan,andmayalsobetaxedbytheotherjurisdiction.If you pay tax to both, you can claim a credit on yourMichigan return. See instructions forMI-1040, line 18 andtheexampleonpage10.Part-year resident. You are a part-year resident if, duringthe year, you move your permanent home into or out ofMichigan. You must pay Michigan income tax on incomeyouearned,received,oraccruedwhilelivinginMichigan.UseMichigan Nonresident and Part-Year Resident Schedule (Schedule NR) and the following guidelines to help figureyourtax:• Allocateyourincomefromthedateyoumovedintoorout

ofMichigan• Bonuspay,severancepay,deferredincome,andanyother

amount accruedwhile aMichigan resident are subject toMichigan tax no matter where you lived when youreceivedit

• Deferred compensation reported to you onU.S. Form 1099-R and dividend and interest income areallocatedtothestateofresidencewhenreceived

• Part-year residents who lived in Michigan at least sixmonths of the tax year may qualify for a homesteadpropertytaxcredit(seepage27).

NOTE: Out-of-state students who live in Michigan whilethey are attending school are not considered Michiganresidents or part-year residents and should file asnonresidents.Nonresident. Use Schedule NR to figure your Michigantaxable income.Youmust payMichigan income tax on thefollowingtypesofincome:

• Salary,wages,andotheremployeecompensationforworkperformedinMichigan,unlessyouliveinastatecoveredbyareciprocalagreement(see“ReciprocalStates”)

• Net rents and royalties from real and tangible personalpropertyinMichigan

• Capital gains from the sale or exchange of real propertylocated in Michigan, or of tangible personal propertylocatedinMichigan

• Patent or copyright royalties if the patent or copyright isusedinMichiganorifyouhaveacommercialdomicileinMichigan

• Income(includingdividendand interest income)fromanScorporation,partnershiporanunincorporatedbusiness,orotherbusinessactivityinMichigan

• Lotterywinnings• Prizeswon fromcasinosor licensedhorse tracks located

in Michigan. Nonresidents from reciprocal states mustalsodeclaretheseprizesastaxable.

Reciprocal StatesIllinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin have reciprocal agreements with Michigan.Michigan residents pay only Michigan income tax ontheir salaries and wages earned in any of these states.A Michigan resident may file a withholding form withan employer in a reciprocal state to claim exemptionfrom that state’s income tax withholding. The out-of-state income may make Michigan individual income taxestimate payments necessary. Residents of reciprocal statesworking in Michigan do not have to pay Michigan tax onsalaries or wages earned in Michigan but do have to payMichigan tax on business income earned from businessactivity in Michigan. A resident of a reciprocal state whoclaims a refund of Michigan withholding tax must file aScheduleNRalongwithanMI-1040.Deceased TaxpayersA personal representative for the estate of a taxpayer whodied in2017 (or2018before filing a2017 return)must file ifthetaxpayerowestaxorisduearefund.Afull-yearexemptionisallowedforadeceasedtaxpayeronthe2017MI-1040.Usethedecedent’sSocialSecuritynumberandyour address.If the taxpayerdiedafterDecember31,2016,enter thedateof death in the “DeceasedTaxpayer” box on page 2 on the2017MI-1040.Thesurviving spouse isconsideredmarried for theyear inwhich thedeceased spousedied andmay file a joint returnfor that year. Write your name and the decedent’s nameand both Social Security numbers on the MI-1040. Write“DECD” after the decedent’s last name. You must reportthe decedent’s income. Sign the return. In the deceased’ssignature line, write “Filing as surviving spouse.” If thetaxpayer died after December 31, 2016, enter the date ofdeath in the “Deceased Taxpayer” box on page 2 of theMI-1040. See “Deceased Taxpayer Chart of Examples” onpage59,exampleA.If filing as a personal representative or claimant andyou are claiming a refund for a single deceased taxpayer,you must include a U.S. Form 1310 or Michigan Claim for Refund Due a Deceased Taxpayer (MI-1310). Enterthe decedent’s name in the Filer’s Name lines and the

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representative’s or claimant’s name, title, and address inthe Home Address line. See “Deceased Taxpayer Chart ofExamples”onpage59,exampleBorC.If filing as a personal representative or claimant of adeceased taxpayer(s) for a jointly filed return, you must include a U.S. Form 1310 or Michigan Claim for Refund Due a Deceased Taxpayer (MI-1310). Enter the names ofthedeceasedpersonsintheFiler’sandSpouse’sNamelinesandtherepresentative’sorclaimant’sname,title,andaddressintheHomeAddressline.See“DeceasedTaxpayerChartofExamples”onpage59,exampleDorE.For information about filing a credit claim, see “DeceasedClaimant’sCredit”onpage27.Amended ReturnsBeginning with tax year 2017, if you need to make acorrection to your return, file a new complete MI-1040.Check the Amended Return box at the top of page 1 ofthe form, and file the Schedule AMD and all applicableschedules and supporting documentation to amend yourreturn. If you are amending for tax year 2016or prior, youmustuseFormMI-1040X-12.Ifyouareduearefundonyouramendedreturn,youmustfileitwithinfouryearsoftheduedateoftheoriginalreturn.Once you file a joint return, you cannot choose to fileseparatereturnsforthatyearaftertheduedateofthereturn.If a changeonyour federal return affectsMichigan taxableincome,youmustfileanamendedreturnwithin120daysofthechange.Youmustincludeacopyofyouramendedfederalreturnandallsupportingschedules.Includepaymentofanytaxandinterestdue.To amend only a homestead property tax or homeheating credit, file a new MI-1040CR, MI-1040CR-2, or MI-1040CR-7 respectively, for the appropriate year. ChecktheAmendedReturnboxonthetopofpage1ofeachcreditclaim; do not file a new MI-1040 or Schedule AMD. Ifapplicable, includeacopyofyourproperty taxstatement(s),and/orleaseagreementandacopyofyourheatstatement.

Net Operating Losses (NOL)If you have a federal NOL deduction, remove the federalNOLdeductionfromMichigantaxableincome,totheextentincluded in federalAGI.Residents accomplish this throughan addition on Michigan Schedule 1, line 7. If you arerequired tofile aMichiganScheduleNR, the entire federalNOL deduction, no matter where earned, is allocated toColumnC. AMichiganNOL deduction in a carryforwardyearmaybeclaimedonMichiganSchedule1,line21.Part 1 of Application for Michigan Net Operating Loss Refund (MI-1045) is used to calculate the Michigan NOLfor the loss year and a copymust be included with returnsto which the loss is carried forward. A separate worksheetshowing how the loss has been used in years previous toandsucceeding the lossyear shouldalwaysbesubmitted toverify the claimed carryforward. If carrying the loss back,Part2ofFormMI-1045mustbefiled.

Repayments of Income Reported in a Prior Year

If you had to repay money in 2017 that you claimed asincomeinapreviousyear(e.g.,unemploymentbenefits),youmay be entitled to a credit on your 2017 return for the taxpaidinanearlieryear.If you subtracted the repayment in arriving at AGI, noadditional credit is allowedon theMichigan returnbecauseyourincomefortheyearhasbeenreducedbytherepaymentamount. If the amount of the repayment was deducted onU.S. Schedule A oracreditwasclaimedonU.S.Form 1040,acreditwillbeallowedontheMichiganreturn.To compute yourMichigan credit,multiply the amount yourepaid in 2017 by the tax ratewhichwas in effect the yearyou paid the tax. Then add the amount of the credit to theMichigantaxwithheldonMI-1040,line29.Write“ClaimofRight/Repayment”nexttoline29.Include a schedule showing the computation of thecredit, proof of the repayment, and pages 1 and 2 of yourU.S.Form1040andSchedule A,ifapplicable.

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Use TaxEvery state that has a sales tax has a companion tax forpurchasesmade outside that state by catalog, telephone, orInternet.InMichigan,thatcompaniontaxiscalled“usetax,”butmightbedescribedasaremotesalestaxbecauseitisa6percenttaxowedonpurchasesmadeoutsideofMichigan.Use tax is due on catalog, telephone, or Internet purchasesmade from out-of-state sellers as well as purchases whiletraveling in foreign countries when the items are to bebrought into Michigan. Use tax must be paid on the totalprice(includingshippingandhandlingcharges).Beginning October 1, 2015, additional Internet retailersbegan charging tax on their online sales. Taxpayers shouldreview their records to determine if the online retailercharged taxat the timeofsale. If the taxwaspaid then,noadditionaltaxwouldbedue.How to Report Use TaxUse Worksheet 1 to calculate your use tax and enter theamountofusetaxdueonMI-1040,line23.Worksheet CalculationLine 1: For purchases of $0 to $1,000, multiply your totalpurchases times 6 percent (0.06) and enter the amount on Line 1,or, if you have incomplete or inaccurate receipts tocalculateyourpurchases,youmayuse“Table1-UseTax”toestimateyourtaxes(seethefollowingexample).Line 1 should contain a number unless you made nopurchasesunder$1,000subjecttotheusetax.

Line 2: In all cases, if a single purchase is $1,000ormoreandtaxisnotcollectedbytheseller,youmustpay6percentusetaxonthatpurchase.Example: Edordered a computer froma catalog retailer inNew York for $1,437.50. Ed also purchased items over theInternet for less than $1,000 during the year, but lost hisreceipts.He is surehedidnotpayMichigansales tax.Ed’s AGIis$46,500.EdwouldcompleteWorksheet1asfollows:Line 1: Edselects$36fromTable1................................... $36Line 2: Edenters$1,437.50x6percent........................ $86.25Line 3:Totalusetaxdue............................................. $122.25Edwouldenter$122(roundingdownbecausetheamountis49centsorless)onhisMI-1040,line23.Estimating your taxes does not preclude Treasury fromauditing your account. If additional tax is due, you mayreceive an assessment for the amount of the taxowed, plusapplicablepenaltyandinterest.Use Tax on the DifferenceIf you paid at least 6 percent to another state on yourpurchase, you do not owe use tax toMichigan. If you paidlessthan6percent,youowethedifference.NOTE:Thefull6percentusetaxisalsoowedonpurchasesmadeinaforeigncountry.Formoreinformation,visitwww.michigan.gov/taxes.

TABLE 1 - USE TAX

AGI* Tax$0-$10,000...................................................... $4$10,001-$20,000............................................$12$20,001-$30,000............................................$20$30,001-$40,000............................................$28$40,001-$50,000............................................$36$50,001-$75,000............................................$50$75,001-$100,000..........................................$70Above$100,000..........................MultiplyAGIby 0.08%(0.0008)*AGIfromMI-1040,line10.

WORKSHEET 1 - USE TAX

Line 1: Itemizedpurchasesof$0to$1,000x6percent(0.06)OR “Table1-UseTax”amount.......... $

Line 2:Singlepurchases$1,000ormorex6percent(0.06)............. $

Line 3:TotalUseTaxDue(addLines1and2)................................ $

EnteramountfromLine3aboveonyour2017 MI-1040,line23.IftheamountonLine3is0,enter“0”onyour2017MI-1040,line23.

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Line-by-Line Instructions for Individual Income Tax Return (MI-1040)Lines not listed are explained on the form. Amended return box: If amending your 2017 return,check the box at the top of the form, include a completed ScheduleAMDandsupportingdocumentation.Line 1: Onlymarried filersmay file joint returns. Includenameandaddress.Lines 2 and 3: Enter your full nine-digit Social Securitynumber(s). Failure to provide a complete Social Securitynumbermayresultinprocessingdelays.Line 5: State Campaign Fund. Thesefundsaredisbursedonly to candidates for governor, regardless of politicalparty, who agree to limit campaign spending andmeet thecampaignfundrequirements.Checkingtheboxwillnotraiseyourtaxorreduceyourrefund.Line 6: Farmers, fishermen, or seafarers may have tomakeestimatedpayments,andhavedifferentfilingoptions.Ifat least two-thirdsofyourgross income is fromfarming,fishing, or seafaring, check this box. (For estimate filinginformation,seepage5.)Line 7: Filing Status. Check the box to identify yourfiling status. If you filed a joint federal return, you mustalso file a joint Michigan return. Married couples whofile separate federal returns may file a separate or jointMichigan return. If your status is married filing separately(box c), enter your spouse’s full name in the spaceprovided and enter his or her Social Security number on line3. Ifyoufiledyourfederal returnasheadofhouseholdorqualifyingwidow(er),youmustfileyourMichiganreturnassingle.NOTE:Ifyouareclaimingahomesteadpropertytaxcreditor home heating credit and you lived with your spouse, itmay be easier to file a jointMichigan return because jointtotal household resources are the basis for computing thesecredits.Line 8: Residency. Check the box that describes yourMichigan residency for 2017. If you and your spouse hada different residency status during the year, check a boxfor each of you. Both part-year residents and nonresidentsmust file Nonresident and Part-Year Resident Schedule (ScheduleNR).Fordefinitionofresidency,seepage6.Line 9: Exemptions. Use this line to compute yourMichigan exemption amount plus your Michigan specialexemptions.Line 9a: Enter the number of exemptions you claimed onyour U.S. Form 1040 or 1040A. These exemptions are foryou,yourspouse(iffilingjointly),andyourdependents.Multiply the number of exemptions by your exemptionallowanceof$4,000andenterthatamountinthebox.Line 9b: Michigan Special Exemptions: Deaf, Blind, or Certain Disabilities. You qualify for this exemption ifyou are deaf, blind, hemiplegic, paraplegic, quadriplegic,or totally and permanently disabled. Complete this line,claimingonlyoneexemptionperpersonasitappliestoyou,your spouse andyourdependents. If yourdependent files areturn, youor your dependent, but not both,may claim thedependent’sspecialexemption.

• Deaf means the primary way you receive messages isthrough a sense other than hearing (e.g., lip reading orsignlanguage).

• Blind means your better eye permanently has 20/200vision or less with corrective lenses, or your peripheralfieldofvisionis20degreesorless.

• Totally and permanently disabled means disabled asdefinedunderSocialSecurityGuidelines42USC416.If you are age 66 or older, you may not claim an exemption as totally and permanently disabled.

Line 9c: Qualified Disabled Veterans. A taxpayer mayclaim an exemption of $400 in addition to the taxpayer’sotherexemptions if (a) the taxpayerorspouse isaqualifieddisabled veteran, or (b) a dependent of the taxpayer is aqualified disabled veteran. To be eligible for the additionalexemption an individual must be a veteran of the activemilitary, naval, marine, coast guard, or air service whoreceived an honorable or general discharge and has adisability incurred or aggravated in the line of duty asdescribedin38USC101(16).Thisadditionalexemptionmaynotbeclaimedonmorethanonetaxreturn.Line 9d: If someone else can claim you as a dependent,check the box, enter 0 on line 9a and enter $1,500 on line 9d. If your AGI is less than $1,500 and you had noMichiganincometaxwithheldfromyourwages,youdonot needtofilethisform.Line 10: Adjusted Gross Income. Enter yourAGI from your U.S. Form 1040, U.S. Form 1040A,or U.S. Form 1040EZ. You must include copies offederal schedules that apply to you (see Table 3, page 59). For Michigan adjustments to AGI, see Schedule1,page41. InstructionsforcompletingSchedule1beginonpage12.Line 17: Tax. Multiply the amount on line 16 by 4.25percent(0.0425).Line 18: Income Tax Imposed by Government Units Outside Michigan. Includetheamountofincometaxpaidto:• Anonreciprocalstate(seepage6)• A local governmentunit outsideMichigan, including tax

paidtolocalunitslocatedinreciprocalstates• TheDistrictofColumbia• ACanadianprovince.Includeonly income taxpaid to anothergovernmentunit(s)on income earnedwhile youwere aMichigan resident andtaxed by Michigan. For assistance with calculating thiscredit,gotowww.michigan.gov/incometax.Include a copy of the return filed with the other government unit(s) with your MI-1040. If you do not include the return filed with the other government unit(s) when claiming this credit, processing of your return may be delayed or your credit may be denied.Donotincludetaxespaidonincomeyousubtractedonlines10through26ofSchedule1(e.g.,rentalorbusinessincomefromanotherstate,part-yearresidentwages).IfyouclaimcreditforCanadian provincial tax, you must file a Michigan Resident Credit for Tax Imposed by a Canadian Province (Form777).

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Include copies of your Canadian Federal Individual Tax Return (FormT-1),Canadian Statement of Remuneration Paid (FormT-4),U.S.Form1116,andU.S.Form1040.YourcreditislimitedtotheportionofyourCanadianprovincialtaxnotusedasacreditonyourU.S.Form1040.Line 18a: Enter the total income tax paid to othergovernment units. If you paid tax to more than one unit,includeascheduleshowingthetaxpaidtoeachgovernmentunit.Also include a copy of the return(s).Line 18b: Creditamount.Ifmorethanonegovernmentunitisinvolved,computethecreditamountforeachgovernmentunit separately.Thenadd the individual credit amounts andenterthetotalonline18b.Computeyourallowablecreditasfollows:Step 1: Divide your non-Michigan income subject to taxbybothstatesbyyour total incomesubject toMichigan tax (MI-1040,line14);thenStep 2: Multiply the amount of tax shown on MI-1040, line17,bytheresultingpercentage.Your credit cannot exceed the smaller of: (1) the amountof tax imposed by another government; or (2) the amountofMichigan tax due on salaries,wages, and other personalcompensationearnedinanotherstate.Example: Computing Michigan resident’s credit for tax imposed by another state. Hunter isaMichiganresidentandhas$40,000ofMichiganwages,$10,000ofwagesearnedinanotherstate,and$3,000in interest and dividends. Hunter’s federal AGI is $53,000.He has noMichigan adjustments (additions or subtractions)toAGI.Aftersubtractinghis$4,000exemptionfrom$53,000income subject to tax, Hunter’s taxable income is $49,000(MI-1040,line16).Thisresultsinataxof$2,083($49,000x0.0425)that isreportedonMI-1040,line17.Theotherstateimposed$700taxonthe$10,000Hunterearnedinthatstate.Tocomputethecredit,determinethefollowing:Step 1:Calculatethepercentageofnon-Michiganincometototalincomesubjecttotax($10,000/$53,000)=19%Step 2:MultiplyMichigantaxof$2,083by19%=$396Step 3: On MI-1040, line 18a, enter $700, the taximposed by the other state. On MI-1040, line 18b,enter $396 (the credit is the lesser of $700 or $396). Line 19: Michigan Historic Preservation Tax Credit. Taxpayers eligible for this credit received a certificatefrom the StateHistoric PreservationOffice indicating theireligibility. To claim this credit you must submit all of thesupportingdocumentation.ForalistofsupportingformsandschedulesseetheForm3581instructions.Line 19a: Entertheamountfromyour2017Form3581,line9.Line 19b: Entertheamountfromyour2017Form3581,line14.Line 19: Small Business Investment Tax (Venture Investment) Credit. The Small Business Investment Tax(Venture Investment) Credit provides Qualified Investorsa25percent taxcreditovera twoyearperiodonQualifiedInvestmentsinQualifiedBusinesses.Toqualify,investmentshad to be made after December 31, 2010 and before

January1,2012.Taxpayerseligibleforthiscreditreceivedacertificate from theMichigan Strategic Fund Board, SmallBusiness Investment Tax Credit Program. The certificatemustbeincluded withthetaxpayer’sreturn.Line 19a: Enter the contribution amount or investmentamountfromtherequiredcertificate.Line 19b: Enter the income tax credit amount from therequiredcertificate.Line 20: Income Tax. Carrythisamounttoline21.Line 22: Voluntary Contributions. Contributions can bemadeon theVoluntary Contribution Schedule (Form4642).IncludeForm4642 toensureyourcontributionsareappliedto the fund(s) of your choice. Contributions will increaseyourtaxdueorreduceyourrefund. When filing an amendedMI-1040, you cannot amend yourvoluntarycontributionsamount.Youmustentertheamountfromyouroriginalreturn.Line 23: Use Tax. Enter use tax due from Worksheet 1, line3,onpage8.When filing an amendedMI-1040, you cannot amend youruse tax amount. You must enter the amount from youroriginal return. To amend your use tax, write a letter toMichigan Department of Treasury, Business Tax Division,P.O.Box30427,Lansing,MI48909.Line 25: Propertytaxcreditinformationbeginsonpage25. Line 26: Farmland preservation credit applies to farmersonly.SeeMI-1040CR-5instructionsforinformation.Line 27: Michigan Earned Income Tax Credit (EITC). Taxpayers who are eligible to claim an EITCon their federal return may claim a Michigan EITCequal to 6 percent of the taxpayer’s federal credit. Enteryour federal EITC amount on line 27a and 6 percent of line27aonline27b.Line 28: Michigan Historic Preservation Tax Credit. Enter the amount from your 2017 Historic Preservation Tax Credit (Form3581), line16aor16b,whichever applies.Include a completed Form 3581 and U.S. Form 3581, ifapplicable.Line 29: Enter the totalMichigan tax withheld includingMichiganflow-throughwithholding(fromyourScheduleW).If applicable, include any credit for repayments under the“ClaimofRight.”See“RepaymentsofIncomeReportedinaPriorYear”onpage7.Line 30: Enter the total estimated tax paidwith your 2017 MI-1040ES,theamountpaidwithaForm4,andtheamountof your 2016 credit forward (2016MI-1040, line 34) to thisyear’stax.Do not include a prior year’s refund amount or Michigan flow-through withholding. Line 31: This line is for amended returns only. If youchecked box 31a to indicate you received a refund and/orcredit forward from your original return, enter the refundamount received as a negative number. If you checked box31b to indicateyoupaidwithyouroriginal return,enter theamountofyourpaymentasapositivenumber.Donotincludeanyinterestorpenaltypaidwithyouroriginalreturn.Whenfilinganamendedreturn,youmustincludeScheduleAMD.

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Example 1: Tina is amending her return. Tina received a$100refundonheroriginal return.Tinachecksbox31aandenterstherefundasanegativenumber.Tinareports-$100online31c.Example 2: Tom is also amending his return. Tom paid atotalof$275withhisoriginalreturn;$250wasfor taxdue,$5wasforinterestand$20wasforpenalty.Tomchecksbox31bandenterstheamountpaidasapositivenumberbutdoesnotincludeinterestorpenalty.Tomenters$250online31c.Line 33: You Owe. If line 32 is less than line 24, enterthe difference. This is the tax you owe with your return.If line 32 is negative, treat it as a positive amount andadd it to the amount on line 24. Enter the result on line 33. Payments can now be made electronically. Go to www.michigan.gov/iitformoreinformation.Ifthebalancedue is less than $1, no payment is required, but you muststill file your return. See “Pay” address on page 2 of your MI-1040.If you pay after the due date of the return, penalty andinterestforlatepaymentisalsodue.Penaltyaccruesmonthlyat 5 percent of the tax due, and increases by an additional5 percent per month, or fraction thereof, after the secondmonth,up toamaximumof25percentof the taxdue (e.g.,penaltyona$500taxduewillbe$125ifthetaxisunpaidforsixmonths).See“PenaltyandInterestAddedforFilingandPayingLate”onpage4.Addpenaltyandinteresttoyourtaxdueandenterthetotalonline33.Generally, if you owemore than $500, you are required tomake estimated payments. Taxpayers required to makeestimated payments may owe penalty and interest forunderpayment,latepayment,orforfailingtomakeestimatedtaxpayments.UsetheMichigan Underpayment of Estimated Income Tax (FormMI-2210)tocomputepenaltyandinterest.If you do not file anMI-2210, Treasurywill compute yourpenalty and interest and send you a bill. If you annualizeyour income, you must complete and include an MI-2210.Enterthepenaltyandinterestamountsonthelinesprovided.Line 35: Credit Forward. Credit forward is only availableon an original return andwill not be accepted as away toclaimyouroverpaymentonanamendedreturn.Line 36: Refund. This includes any tax you overpaid andanycreditsyouclaimed.Thestatedoesnot refundamountslessthan$1.Mailyourreturntothe“Refund,credit,orzeroreturns”addressonpage2ofyourMI-1040.Direct DepositDirect Deposit is only available on an original return andmaynotbeusedtoissuearefundonanamendedreturn.Checkwithyourfinancialinstitutionto(1)makesureitwillacceptDirectDeposit,(2)obtainthecorrectRoutingTransitNumber (RTN) and account number, and (3) if applicable,verifythatyourfinancialinstitutionwillallowajointrefundtobedepositedintoanindividualaccount.Direct Deposit requests associated with a foreign bankaccount are classified as International ACH Transactions(IAT). IfyourDirectDeposit is forwardedor transferred toa bank account in a foreign country, it will be returned to

Treasury. If this occurs, your refundwill be converted to acheckandmailedtotheaddressonyourtaxreturn.Contactyourfinancialinstitutionforquestionsregardingthestatusofyouraccount.a. RTN. Enterthenine-digitRTN.TheRTNisusuallyfoundbetween the symbols |: and |: on the bottomof your check.Thefirsttwodigitsmustbe01through12or21through32.b. Account Number. Enteryourfinancialinstitutionaccountnumberup to17characters (bothnumbersand letters).TheaccountnumberisusuallyfoundimmediatelytotherightoftheRTNon thebottomofyour check. Includehyphensbutomit spaces and special symbols.Donot include the checknumber.c. Type of Account. Checktheboxforcheckingorsavings.When You Are Finished Sign Your Return: Eachspousemustsignajointreturn.Ifthe tax preparer is someone other than the taxpayer, he orshemustincludethenameandaddressofthefirmheorsherepresentsandpreparertaxidentificationorfederalemployeridentificationnumber.ChecktheboxtoindicateifTreasurymaydiscussyourreturnwithyourpreparer. Signing a child’s return: Ifareturnispreparedforachildwho is too young to sign it, a parent or guardian shouldsign the child’s name, then add “by (your name) parent (orguardian)forminorchild.”Attachments: Include all your credit claims and requiredMichiganandfederalschedules(seeTable3onpage59).If you owe tax: Make your check payable to “State of Michigan.” Print the last four digits of your Social Security number and “2017 income tax” on the front ofyour check. If paying on behalf of another taxpayer, writethe filer’s name and the last four digits of the filer’s SocialSecuritynumberonthecheck.Encloseyourpaymentbutdonotstapleittothereturn.Thefiling deadline to receive a refundfortaxyear2017isApril15,2022.

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Line-by-Line Instructions for Additions and Subtractions (Schedule 1) Part-year and nonresidents, complete Schedule NR (see page49)beforeproceeding.Ifyouhaveincomeorlossesattributabletootherstates,youmust include all relevant federal schedules and supportingstatements (see page 59). Include Schedule K-1s whichsupport your federal Schedules B, D, E and 4797. The type, source and location of the income or loss must be identified. For assistance conveying this information toTreasury, refer to the “Business,Rental&RoyaltyActivityWorksheet” and its instructions available on Treasury’sWeb site. If you do not include the federal schedules andsupporting statements, processing of your return may bedelayedoryourcredit/subtractionmaybedenied.Additions to IncomeLine 1: Enter gross interest, dividends, and incomefrom obligations or securities of states and their politicalsubdivisionsother thanMichigan.Add this incomeeven if itcomes toyou throughapartnership,Scorporation,estate,ortrust. You may reduce this income by related expenses notallowed as a deduction by Section 265(a)(1) of the InternalRevenueCode(IRC).Donotcompletethislineifyouwereanonresidentforthefullyear.Line 2: Enter the deduction taken for self-employment tax on your federal return and for other taxes on or measuredby income, such as your share of city income tax paid bypartnershipsorScorporations,oryourshareofthetaxespaidbyanestateortrust.Line 3: Use Michigan Adjustments of Capital Gains and Losses (MI-1040D) and related Michigan Sales and Other Dispositions of Capital Assets (MI-8949) only if you havecapital gains or losses attributable to: (1) an election touse Section 271 treatment for property acquired before October 1, 1967; (2) the sale or exchange ofU.S. obligationswhichcannotbetaxedbyMichigan;or(3)thesaleorexchangeofpropertylocatedinotherstates.IfyoureportedgainsonU.S.Form4797 onpropertyacquiredbeforeOctober 1, 1967, or located in other states, adjust thegainontheMichigan Adjustments of Gains and Losses From Sales of Business Property (MI-4797).Enter gains from theMichigan column ofMI-1040D, line 12, andMI-4797,line18b(2).Instructionsarewitheachform.Line 4: Enter losses from a business or property located inanother state which you own as a sole proprietor, a partnerin a partnership, a shareholder in an S corporation, or as amemberofapass-throughentity.IfyourbusinessistaxedbybothMichiganandanotherstate,thelossmustbeapportioned.You must include a Michigan Schedule of Apportionment (MI-1040H).Line 5: Enter the net loss from the federal column of yourMI-1040D, line 13, or MI-4797, line 18b(2) as a positivenumber.Line 6: Entergross expenses from theproductionofoil andgas or extraction of nonferrous metallic minerals subjecttoMichigan severance tax to the extent deducted fromAGI.Subtracttherelatedgrossincomeonline19.

Line 7: Residents, enter the amount of the NOL deductionincluded inAGI.Part-year andnonresidents, see instructionsforScheduleNR,line11.Line 8:Enterthetotalofthefollowing(includeanadditional scheduleifnecessary):• Add, to the extent not included in AGI, the amount of

money withdrawn in the tax year from a MichiganEducationSavingsProgram(MESP)account,includingtheMichigan 529 Advisor Plan (MAP), or a MichiganAchieving a Better Life Experience Program (ABLE)account, if thewithdrawalwasnot aqualifiedwithdrawalas provided in the MESP or ABLE Acts. You may firstexcludeanyamountthatrepresentsareturnofcontributionsforwhichnodeductionwasclaimedinanypriortaxyear.

• Refund received fromaMichiganEducationTrust (MET)contract. If you deducted the cost of a MET contract inprevious years and received a refund from MET during2017because theMETcontractwas terminated, enter thesmallerof:(1)therefundyoureceivedor (2)theamountofthe originalMETcontract price including feeswhichyoudeductedinpreviousyears.

• Domestic Production Activities Deduction (DPAD)included in AGI that is attributable to business activitylocated in another state, and apportioned if applicable.Nonresidentsandpart-yearresidentsreportDPADonlyonScheduleNR.

NOTE: Michigan treatment of bonus depreciation conformswith federal law.Adjustments for bonus depreciation are notrequired.Subtractions From IncomeNOTE: Part-year and nonresidents, subtract only incomeattributabletoMichigan(ScheduleNR,columnB)thatisnotincludedonline13.Line 10: Enter income from U.S. government obligations(e.g.,SeriesEEbonds,Treasurynotes),includingincomefromU.S. government obligations received through a partnership,S corporation, or other pass-through entity. This subtractionmustbereducedbyrelatedexpensesusedtoarriveatAGI.Investment companies that invest in U.S. obligations arepermittedtopassthetax-freeexemptiontotheirshareholders.If income fromU.S. government obligations exceeds$5,000,include a copy of your U.S. Schedule B and a supportingstatement listing the amounts received, the source, and theissuingagency.CapitalgainsfromthesaleofU.S.governmentobligationsmustbeadjustedonyourMI-1040D.Line 11: Include military and Michigan National Guardretirement benefits here and on Schedule W, Table 2. Alsoreport any taxable Tier 1 and Tier 2 railroad retirementbenefits. Other qualifying public or private retirementbenefitsmustbe reportedon theMichigan Pension Schedule (Form4884)andSchedule1,line25.Line 12: Enter the gains from the federal column of yourMI-1040D,line12,andMI-4797,line18b(2).SeeinstructionsforSchedule1,line3.

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Line 13: Income Attributable to Another State. Nonresidents and part-year residents, complete ScheduleNR.Seeinstructionsonpage50.Includefederalschedules.Business income that is taxedbyMichiganandanother statemust be apportioned. Complete and include the MI-1040H.IncomereportedontheMI-4797andcarriedtotheMI-1040Disbusinessincome,potentiallysubjecttoapportionment.Capital gains from the sale of real property or tangiblepersonal property located outside of Michigan must beadjustedontheMI-1040D.MichiganresidentscannotsubtractsalariesandwagesorothercompensationearnedoutsideMichigan.However,theymaybeentitledtoataxcreditforincometaximposedbygovernmentunitsoutsideMichigan(seepage9).Residents may subtract:• Netbusinessincomeearnedinotherstatesandincludedin

AGI,and• Net rents and royalties from real property or tangible

personalpropertylocatedorusedinanotherstate.Line 14: Compensation received for active duty in theU.S.ArmedForcesincludedinAGIshouldbeenteredhereandonScheduleW,Table1. EnteronlythetaxableportionofSocialSecurityandMilitarypay includedonyourU.S.Form1040,or your U.S. Form 1040A. Do not include your total SocialSecuritybenefits.NOTE: CompensationfromtheU.S.PublicHealthService,contractedemployeepayandcivilianpayarenotconsideredmilitarypay.Line 15: Renaissance Zone deduction.Tobe eligible youmustmeetallthefollowingrequirements:• BeapermanentresidentofaRenaissanceZonedesignated

priortoJanuary1,2012,foratleast183consecutivedays• Beapprovedbyyourlocalassessor’soffice• Not be delinquent for any State or local taxes abated by

theRenaissanceZoneAct• FileanMI-1040eachyear• Havegrossincomeof$1millionorless.Ifyouwerea full-year residentof aRenaissanceZone,youmay subtract all income earned or received. Unearnedincome, such as capital gains, may have to be prorated.If you lived in the Zone at least 183 consecutive daysduring 2017, subtract the portion of income earned whilea resident of the Zone. If you are a part-year resident ofa Zone, complete and include a Schedule NR with your MI-1040. (See “Note” on the bottom of the Schedule NRinstructions,page50.)CertainRenaissanceZonesbegantophaseout in2007.Thetaxexemptionisreducedinincrementsof25percentduringtheZone’sfinalthreeyearsofexistence.Ifyouarearesidentof aZone that isphasingout (checkwithyour localunitofgovernment),youmustreduceyourdeductionasfollows:• 25 percent for the tax year that is two years before the

finalyearofdesignationasaRenaissanceZone• 50 percent for the tax year immediately preceding the

finalyearofthedesignationasaRenaissanceZone• 75 percent for the tax year that is the final year of the

designationasaRenaissanceZone.

For additional information regarding qualifications for theRenaissance Zone deduction, call the Michigan EconomicDevelopmentCorporationat517-373-9808.Line 16: Subtract Michigan state and city income taxrefundsandhomesteadpropertytaxcreditrefundsthatwereincludedinAGI.Note to farmers: Subtract (to the extent included inAGI) the amount that your state or city income tax refundand homestead property tax credit exceeds the businessportionofyourhomesteadpropertytaxcredit.Line 17: Michigan Education Savings Program (MESP). You may deduct, to the extent not deducted in calculatingAGI, the total of all contributions less qualifiedwithdrawalsand rollovers (compute the contributions, withdrawals androllovers separately for each account) made during 2017 bythe taxpayer in the tax year to accounts established throughthe MESP (529 direct-sold program), including the MI 529Advisor Plan (MAP). The deductionmay not exceed $5,000for a single returnor $10,000 for a joint returnper taxyear.Therearemany529savings/investmentprogramsnationwide,butMichiganonlyallowsataxdeductionforcontributionstotheMichigan529programs:MESP,MAPandMET.Line 18: Michigan Education Trust (MET). You maydeductthefollowing:• IfyoupurchasedaMET529prepaidtuitioncontractduring

2017,youmaydeductthetotalcontractprice(includingtheprocessingfee).

• If you made a charitable contribution to the METCharitableTuitionProgramduring2017,youmaydeductthetotalcontributionamount.Youshouldhavereceivedareceipt fromMET to confirm the amount.All charitabledonationswillgotowardprovidingscholarshipstoformerfostercarestudentsattendingMichigancolleges.

• If you purchased a MET payroll deduction, monthlypurchase or pay-as-you-go contract, youmay deduct theamount paid on that contract during 2017 (not includingfees for late payments or insufficient funds). You willreceive an annual statement from MET specifying thisamount.

• If youhave terminatedaMETcontract, youmaydeducttheamountincludedinAGIasincometothepurchaser.

Line 19: Subtract the gross income subject to Michiganseverance tax from theMichigan production of oil and gasor extraction of nonferrous metallic minerals to the extentincluded in AGI. Add back the related expenses on line 6.Includecopiesofapplicablefederalschedules.Line 20: Tax Agreement Tribes: A “Resident TribalMember” (Member must be on the list submitted by theirTribe to the State of Michigan) of a federally recognizedIndiantribethathasanactivetaxagreementwiththeStateofMichiganmaysubtractcertainincomethatisincludedinhisorherAGIidentifiedonline10oftheMI-1040.Suchexemptincome may include income derived from wages, interest,and pension income. For a list of agreement tribes, go to www.michigan.gov/taxes and select “Individual IncomeTax” and then “Native American.” A list of tribes’ nameswill be available; click to access the tax agreement andproceed to Section IV. Non-Tax Agreement Tribes: Ifyour tribe is not listed, your tribe does not have an active

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tax agreement with Michigan. Non-agreement members,seeRevenue Administrative Bulletin 1988-47 for guidelinesin determining exempt income that may be subtracted on line20.NOTE: MichiganincomeearnedwhilelivingoutsideofyourAgreementArea(seeyourtribe’sagreementforadescriptionof your Agreement Area) or Indian Country (as definedunder18U.S.C.1151forNon-AgreementTribes)maynotbesubtractedfromMichiganAGI.Line 21: Net Operating Loss (NOL). Youmayonlydeductthe Michigan NOL. Your Michigan NOL carryforwardentered here must be reduced by the domestic productionactivities deduction and the excess capital loss deductionattributabletoMichiganthatwasusedtoarriveatyour2016 AGI (see MI-1045 instructions). You must include Form MI-1045, pages 1 and 2 of your federal return and allsupportingschedulesandstatements.Line 22: Miscellaneous subtractions only include:• Any portion of a qualified withdrawal from an MESP

account, including the MAP, or ABLE account to theextentincludedinfederalAGI.NOTE:Anyamountsnotincluded inAGIor thatarealreadydeductedon theU.S.Form 1040 to arrive at AGI do not qualify for thissubtraction.

• Benefits from a discriminatory self-insured medicalexpense reimbursement plan, to the extent thesereimbursementsareincludedinAGI.

• Losses from the disposal of property reported in theMichigan column of MI-1040D, line 13, or MI-4797, line18b(2).

• Amount used to determine the credit for elderly or totallyandpermanentlydisabledfromU.S.Form 1040 Schedule R, line19. Includeacopy.

• Holocaustvictimpayments.You may not subtract:• Retirement and pension benefits on line 22. See Form

4884• ItemizeddeductionsfromU.S.Schedule A• Sick pay (except railroad sick pay included in AGI),

disabilitybenefits,andwagecontinuationbenefitspaidtoyoubyyouremployerorbyaninsurancecompanyundercontractwithyouremployer

• Unemployment benefits included inAGI, except railroadunemploymentbenefits

• Contributions tonationalorMichiganpolitical partiesorcandidates

• Proceeds and prizeswon in State ofMichigan regulatedbingo,raffle,orcharitygames

• DistributionsfromadeferredcompensationplanreceivedwhilearesidentofMichigan

• Lotterywinnings.(Exception:installmentpaymentsfromprizes won on or before December 30, 1988, may besubtracted.) Include installment gross winnings asreported on your FormW-2G, box 1, and enter on yourScheduleW,Table1.

• AdjustmentsforbonusdepreciationnotincludedinAGI.

Lines 23C and 23F: Benefits From Employment with a Governmental Agency Not Covered by the Federal Social Security Act (SSA). SSA exempt employment is not covered by the federalSSA, which means the worker did not pay Social Securitytaxes and is not eligible for Social Security benefits basedon that employment. Almost all employment is covered bythe federalSSA.Themost common instancesof retirementand pension benefits from employment that is not coveredby Social Security are police and firefighter retirees, somefederal retirees covered under the Civil Service RetirementSystemandhiredpriorto1984,andasmallnumberofotherstate and local government retirees. Federal retirees hiredsince 1984 and those covered by the Federal Employees’RetirementSystemarecoveredundertheSSA.A recipient born between January 1, 1946 and January 1, 1956 who receives, or whose spouse receives,retirement or pension benefits from employment with agovernmental agency that was not covered by the federalSSA isentitled toagreater retirementorpensiondeductionor Michigan Standard Deduction. If you or your spouseare SSA exempt this increases your maximum allowablededuction.For taxpayersbornbefore1953,answer thequestionsbelowtodetermineifyoushouldcheckboxes23Cand/or23F.Line 23C:1. Was the older of the filer or spouse born between

January1,1946andDecember31,1952?Yes: Continuetoquestion3.No: Continuetoquestion2.2. Didthefilerreceiveretirementorpensionbenefitsfroma

deceased spouse born between January 1, 1946 andDecember31,1952?

Yes: Continuetoquestion3.No: Stop.Youarenoteligibletocheckbox23C.3. Did the filer receive SSA Exempt retirement or pension

benefits?Yes: Checkbox23C.No: Continuetoquestion4.4. Did the filer receive SSA Exempt surviving spouse

benefits?Yes: Checkbox23C.No: Stop.Youarenoteligibletocheckbox23C.Line 23F:1. Was the older of the filer or spouse born between

January1,1946andDecember31,1952?Yes: Continuetoquestion3.No: Continuetoquestion2.2. Didthespousereceiveretirementorpensionbenefitsfrom

a deceased spouse born between January 1, 1946 andDecember31,1952?

Yes: Continuetoquestion3.No: Stop.Youarenoteligibletocheckbox23F.3. DidthespousereceiveSSAExemptretirementorpension

benefits?Yes: Checkbox23F.No: Continuetoquestion4.

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4. Did the spouse receive SSA Exempt surviving spousebenefits?

Yes: Checkbox23F.No: Stop.Youarenoteligibletocheckbox23F.If the older of the filer or spouse was born on or afterJanuary1,1953butbeforeJanuary2,1956,hasreachedage62 and either the filer or spouse receives Social Securityexempt retirement benefits, check box 23C (for the filer)and/orbox23F(forthespouse).Line 24: Michigan Standard Deduction.Iftheolderofyouoryourspouse(ifmarriedfilingjointly)wasbornduringtheperiodJanuary1,1946throughJanuary1,1951,andreachedtheageof67onorbeforeDecember31,2017,youareeligibleforadeductionagainstallincomeandwillnolongerdeductretirement and pension benefits. The deduction is $20,000for a return filed as single or married filing separately, or$40,000 for a married filing jointly return. If you checkedeitherbox23Cor23Fyour standarddeduction is increasedby $15,000. If you checked both boxes 23C and 23F yourstandarddeductionisincreasedby$30,000.Thestandarddeductionisreducedbyanyamountsreportedonline11andanymilitarypayincludedonline14.Inmostcases,taxpayerswhoareeligibletocompleteline24shouldnotcompletelines25or26.However,ifataxpayeristhe unremarried surviving spouse of a decedent born prior

to 1946who also died after reaching age 65, check the boxbelow line 26 to claim theMichigan standard deduction online24andadeductionforinvestmentincomeonline26(ifapplicable).Line 25: Qualifying retirement and pension benefitsincluded in your AGI may be subtracted from income.Retirement and pension benefits are taxed differentlydependingon theageof the recipient.See“WhichBenefitsareTaxable”below.Youmust include Form 4884. If youwere born during theperiodJanuary1,1946throughJanuary1,1951,seeline24.Line 26: Senior citizens born prior to 1946 (or theunremarried surviving spouse of a decedent born prior to1946 who also died after reaching age 65) may subtractinterest, dividends, and capital gains included inAGI. Thissubtraction is limited to amaximumof $11,259on a singlereturnor$22,518onajointreturn.Themaximumisreducedbyanydeductionfor:• Military (includingMichiganNationalGuard) retirement

benefitsfromline11• Railroadretirementbenefitsfromline11• Public andprivate retirement andpension benefits from

line25• Amount used for the federal credit for the elderly and

totallyandpermanentlydisabledfromline22.Forfurtherassistance,gotowww.michigan.gov/incometax.

General Information - Pension Schedule (Form 4884)What are Retirement and Pension BenefitsUnder Michigan law, qualifying retirement and pensionbenefits include most payments that are reported on a 1099-R for federal tax purposes. This includes definedbenefit pensions, IRA distributions, and most paymentsfrom defined contribution plans. Payments received beforethe recipient could retireunder theprovisionsof theplanorbenefits from 401(k), 457, or 403(b) plans attributable toemployeecontributionsalonearenot retirementandpensionbenefits underMichigan law, are taxable, and are subject towithholding.Qualifying benefits include distributions from the following sources:• Pensionplansthatdefineeligibilityforretirementandset

contributionandbenefitamountsinadvance• Qualifiedretirementplansfortheself-employed• Retirement distributions from a 401(k) or 403(b) plan

attributable to employer contributions or attributable toemployeecontributions that result in additional employercontributions(e.g.,matchingcontributions)

• IRAdistributionsreceivedafterage59½ordescribedbySection72(t)(2)(A)(iv)oftheIRC(seriesofequalperiodicpaymentsmadeforlife)

• Benefitsfromanyofthepreviousplansreceivedduetoadisability, or as a surviving spouse if the decedentqualifiedfor thesubtractionat thetimeofdeathandwasbornpriortoJanuary1,1953

• Benefitspaid toa senior citizen (age65orolder) fromaretirementannuitypolicythatarepaidforlife(asopposedtoaspecifiednumberofyears)

• Foreign retirement and pension benefits that meetMichigan’squalificationsmayalsobeeligible.

Qualifying public benefits include distributions from the following sources:• TheStateofMichigan• Michigan local governmental units (e.g., Michigan

counties,cities,andschooldistricts)• Federalcivilservice.Retirement and pension benefits that are transferred fromoneplantoanother(rolledover)continuetobe treatedas iftheyremainedintheoriginalplan.For public and private retirement or pension benefits, you may not subtract (do not include on Form 4884):• Amountsreceivedfromadeferredcompensationplanthat

letstheemployeesettheamounttobeputasideanddoesnotsetretirementageorrequirementsforyearsofservice.These plans include, but are not limited to, plans underSections401(k),457,and403(b)oftheIRC

• Amounts received before the recipient could retire undertheplanprovisions,includingamountspaidonseparation,withdrawal,ordiscontinuanceoftheplan

• Amounts received as early retirement incentives, unlesstheincentiveswerepaidfromapensiontrust.

Which Benefits are TaxableRetirement and pension benefits are taxed differentlydependingontheageoftherecipient.Marriedcouplesfilinga joint returnshouldcompleteForm4884basedon theyearofbirthoftheolderspouse.MilitaryandMichiganNationalGuard pensions, railroad retirement benefits and Social

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SecuritybenefitsareexemptfromtaxandshouldbereportedontheSchedule1,line11orline14.Who May Claim a Pension Subtraction• Recipients born before 1946 maysubtractallqualifying

retirement and pension benefits received from publicsources, and may subtract qualifying private retirementand pension benefits up to $50,509 if single or marriedfilingseparate,or$101,019ifmarriedfilingajointreturn.If your public retirement benefits are greater than themaximum amount you are not entitled to claim anadditionalsubtractionforprivatepensions.

NOTE: In addition to the public retirement benefits listedabove, the private pension limits are also reduced by thefollowingfromSchedule1,line11:

• MilitaryretirementfromtheU.S.ArmedForces• RetirementfromtheMichiganNationalGuard• Railroadretirement.

• Recipients born during the period January 1, 1946 through January 1, 1951, do not complete Form 4884.SeeSchedule1,line24.

• Recipients born after January 1, 1951 through December 31, 1952 willbeable todeductup to$20,000inqualifying retirementandpensionbenefits if singleormarriedfilingseparate,orupto$40,000ifmarriedfilingajointreturn.Generally,allretirementorpensionbenefits(public and private) are treated the same unless therecipientalsohassignificantbenefits fromservice in theU.S. Armed Forces or Michigan National Guard, orreceives taxable railroad retirement benefits. Recipientswhodeductmilitaryretirementbenefitsduetoservice inthe U.S. Armed Forces or Michigan National Guard, ortaxablerailroadretirementbenefitsonSchedule1,line11mayhavelowerdeductionlimits if thesedeductionstotalmorethan$30,509onasinglereturnor$61,019onajointreturn.Seetheinstructionsforline16or27ofForm4884,whicheverapplies,formoreinformation.

• Recipients born on or after January 1, 1953 but before January 2, 1956 who have reached age 62 and receive retirement benefits from employment exempt from Social Securitymay deduct up to $15,000 in qualifying

retirementandpensionbenefits.IfbothspousesonajointreturnreceiveSocialSecurityexemptretirementbenefits,the maximum deduction increases to $30,000. SeeForm4884,line28instructionsformoreinformation.

• All other recipients born after 1952, all retirementandpensionbenefitsare taxableandyouarenotentitled toapensionsubtraction.

Forhelpcalculatingtheretirementandpensionsubtraction,see“Which Section of Form 4884 Should I Complete?”onpage17.Retirement Benefits from a Deceased SpouseCalculatetheamountofdeductibleretirementbenefitsreceivedasasurvivorofadeceasedspousebasedonthebirthyearofthedeceasedspouseandthefilingstatusofthesurvivingspouse.Retirement benefits received as a survivor generally have adistributioncodeof4onthefederalForm1099-R.The1099-R reportsretirementbenefitstotheInternalRevenueServiceanditissentbythepensionadministratorpayingthebenefits.Example 1:Amarriedfilerwhoreceivesretirementbenefitsasthesurvivingspouseofadecedentbornin1942(Tier1)wouldbeabletosubtractallpublicretirementbenefitsreceivedfromthedeceasedspouseandprivate retirementbenefits receivedupto$101,019,reducedbyanypublicbenefitsreceivedfromthedeceasedspouse.Generally, any retirement benefits deducted as a survivorreduce the amount of other retirement benefits thatmay bededucted.Example 2:A single filer who receives retirement benefitsas the surviving spouseof adecedentborn in1952 (Tier2)wouldbeabletosubtractupto$20,000inqualifiedretirementbenefitsreceivedfromthedeceasedspouse.Example 3: If the filer in Example 2 was born in 1952 (Tier 2), any retirementbenefits received from thedeceasedspouse that are deductible will reduce the filer’s maximum deductionforretirementbenefitsof$20,000.NOTE: Filers born after 1952 (Tier 3) receiving survivorbenefits from a deceased spouse born in Tier 1 completeSection B of Form 4884. Filers born after 1952 (Tier 3)receiving survivor benefits from a deceased spouse born inTier2completeSectionCofForm4884.

Filing Status Birth Year Retirement BenefitsTier

Retirement Benefits Deduction Limits

Single/Separate Before1946 Tier1 Allpublicplusprivatebenefitsupto$50,509combined

Single/Separate **1946through1952 Tier2 $20,000

Single/Separate After1952 Tier3 ***Nodeduction

*Joint Before1946 Tier1 Allpublicplusprivatebenefitsupto$101,019combined

*Joint **1946through1952 Tier2 $40,000

*Joint After1952 Tier3 ***Nodeduction

* On a joint return, determine the eligibility for deducting retirement benefits using the age of the older spouse.** Taxpayers born during the period January 1, 1946 through January 1, 1951 should not deduct retirement benefits; you are eligible for the Michigan Standard Deduction. See Schedule 1, line 24 instructions. ***Taxpayers in Tier 3 who have reached age 62 and receive pension benefits from employment with governmental agencies not covered by the Social Security Act, may be eligible for a retirement and pension deduction. See Form 4884, line 28 instructions.

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Line-by-Line Instructions for Pension Schedule (Form 4884)Visitwww.michigan.gov/incometax forhelpcalculatingtheretirementandpensionsubtraction.NOTE: For purposes of this form, single limits apply totaxpayerswhoaremarriedfilingseparately.Lines not listed are explained on the form.Lines 1, 2, and 3: Enter your name(s) and Social Securitynumber(s). If you aremarried filing separate returns, enterbothSocialSecuritynumbers,butdonot enteryourspouse’sname.Lines 4 and 5:Enteryouryear(s)ofbirth.Ifyouaremarriedandfilingseparately,donotenteryourspouse’syearofbirth.Line 6: Enter deceased spouse’s name, Social Securitynumberandyearofbirth.IfdeceasedspousewasbornafterDecember 31, 1952, STOP; you may not deduct retirementbenefits from the deceased spouse. If you are filing yourfinaljointtaxreturnbecauseyourspousediedduringthetaxyear,donotcompleteline6orcheckbox7B.NOTE: When completing Form 4884, surviving spousemeansthedeceasedspousediedpriortothecurrenttaxyear(e.g. when filing a 2017 return the spouse died in 2007).Deceased spouse benefits do not include benefits from aspousewhodiedin2017.Line 7: If you have more than ten qualifying entries,continue those entries on the 2017 Michigan Pension Continuation Schedule (Form 4973). Only include benefitsfrom taxpayer(s)bornafter1952 ifyouqualify tocomplete Section D of Form 4884 or if you are filing a joint returnwhentheolderspousewasbornbefore1953.Line 7B: Foreachqualifyingretirementandpensionbenefitattributable toadeceasedspouseputan“X” incolumn7B.Seeinstructionsforline6formoreinformationondeceasedspousebenefits.Line 7C: If an individual has multiple retirement andpensionbenefitsfromthesamePayerFEINanddistributioncode,combinethoseamountsonthesameline.Line 7D:Listthedistributioncodefrombox7ofthefederalForm1099-R.Line 7F: Include the taxableamountof retirementorpensionreportedinfederalAGI.Ifyouareapart-yearresidentonlyusetheportionfromtheMichiganScheduleNR,line10columnB.Line 8: If you or your spouse reported any retirement andpensionbenefits fromservice in theU.S.ArmedForces, theMichiganNationalGuard or any taxable railroad retirementbenefitsreportedonSchedule1,line11,theseamountsshouldbe subtracted from the allowable private pension deductionlimits. For purposes of this line, single limits apply totaxpayerswhoaremarriedfilingseparately.AmountsdeductedonSchedule1, line11, arenotdeductedagain on Form 4884, and are only used to reduce theallowable deduction for private retirement and pensionbenefits. For example, if a joint filer born in 1945 received$30,000 in retirement benefits from service in the U.S.ArmedForcestheallowableprivatedeductionlimitreportedonline8wouldbe$101,019 - $30,000=$71,019.

Line 12:IfyoucheckedeitherSSAExemptbox23Cor23Ffrom Schedule 1, your maximum is increased by $15,000.If you checked both boxes 23C and 23F yourmaximum isincreasedby$30,000.Line 15: Carry thisamount toSchedule1, line25.DonotcompleteSectionB,SectionCorSectionD.Line 16: If you or your spouse received and reportedany retirement and pension benefits from service inthe U.S. Armed Forces or Michigan National Guard,or any taxable railroad retirement benefits reported onSchedule1,line11,theseamountsshouldbesubtractedfromtheallowableprivatepensiondeductionlimithere.AmountsdeductedonSchedule1, line11, arenotdeductedagain on Form 4884 and are only used to reduce theallowable deduction for private retirement and pensionbenefits.

Which Section of Form 4884 Should I Complete?

Using the information from line 7, complete Section A, Section B, Section C or Section D. To determine which section of the form to complete, answer the following questions.1. Were retirement or pension benefits received bya filer or spouse (if married filing jointly) bornpriortoJanuary1,1953,orweresurvivingspousebenefits received for a deceased spouse who wasborn prior to January 1, 1953 and died prior toJanuary1,2017?

Yes: Continuetoquestion2. No: If you or your spouse (if married filing

jointly) have reached age 62 and receiveSocial Security exempt retirementbenefits, complete Section D of Form4884, otherwise you are not eligible for aretirement or pension benefits subtraction.DonotfileForm4884.

2. Was theolderof fileror spouse (ifmarried filingjointly) born during the period January 1, 1946throughJanuary1,1951?

Yes: Do not file Form 4884. Use Schedule 1,line24(seeinstructions,page15).

No: Continuetoquestion3.3. Was older of filer or spouse (if married filingjointly)bornpriortoJanuary1,1946?

Yes: CompleteSectionAofForm4884. No: Continuetoquestion4.4. Is filer or spouse (if married filing jointly)receiving benefits from a deceased spouse whowasbornpriortoJanuary1,1946anddiedpriortoJanuary1,2017?

Yes: CompleteSectionBofForm4884. No: CompleteSectionCofForm4884.

18

Line 22: Donot include benefits received from a deceasedspouse(whodiedpriorto2017).Line 23: IfyoucheckedeitherSSAExemptbox23Cor23Ffrom Schedule 1, your maximum is increased by $15,000.If you checked both boxes 23C and 23F yourmaximum isincreasedby$30,000.Line 26: Carry thisamount toSchedule1, line25.DonotcompleteSectionA,SectionCorSectionD.Line 27:IfyoucheckedeitherSSAExemptbox23Cor23Ffrom Schedule 1, your maximum is increased by $15,000.If you checked both boxes 23C and 23F yourmaximum isincreasedby$30,000.Taxpayers who were born after January 1, 1951, who arereceiving benefits from a deceased spouse who was bornduring the period January 1, 1946 through January 1, 1951 should also use Section C to calculate the deduction forretirement and pension benefits. Benefits received dueto individuals born after 1952 are not deductible. If youdeducted military retirement benefits, or taxable railroadretirementbenefitsonSchedule1,line11,yourdeductionforretirementorpensionbenefitsreceivedfromaprivatesourcemaybereduced.Todetermineyourallowablesubtraction,useWorksheet2ifyou have taxable railroad retirement benefits or qualifyingretirement and pension benefits from service in the U.S.Armed Forces or Michigan National Guard and you arecompletingSectionCofForm4884.

Carry this amount to Schedule 1, line 25.Do not completeSectionA,SectionB,orSectionD.Line 28: If you checked box 23C and/or 23F onSchedule1andtheolderofyouoryourspousewasbornonor after January 1, 1953 but before January 2, 1956, enterallqualifying retirementandpensionbenefitsyou received,up to $15,000. If you are receiving benefits as a survivingspouse, your deceased spouse’s birth date should not beconsideredunlessyouarefilingajointreturnfortheyearofyour spouse’s death. If both spouses on a joint return haveretirementbenefitsfromemploymentexemptfromtheSocialSecurityAct,themaximumdeductionis$30,000.Recipients who deduct taxable railroad retirement benefitsor military retirement benefits due to service in the U.S.Armed Forces orMichigan National Guard on Schedule 1,line 11may have lower deduction limits on this line if theSchedule1, line11 totalsmore than$35,509.Foradditionalinformation and to determine your allowable subtraction,refer to the “Worksheet for Filers with Taxable RailroadRetirement Benefits or Qualifying Retirement and PensionBenefitsfromServiceintheU.S.ArmedForcesorMichiganNational Guard and Completing Section D of Form 4884”availableonTreasury’sWebsite.Carry this amount to Schedule 1, line 25.Do not completeSectionA,SectionB,orSectionC.

Worksheet 2 for Filers with Taxable Railroad Retirement Benefits or Qualifying Retirement and Pension Benefits from Service in the U.S. Armed Forces or Michigan National Guard and Completing Section C of Form 4884

1. Enter military retirement benefits due to service in the U.S. Armed Forces or Michigan National Guard and taxable railroad retirement benefits reported on Schedule 1, line 11. ......................... 1. 00

2. Enter public retirement and pension benefits reported on Form 4884, line 7. ............................... 2. 00

3. Add lines 1 and 2. .......................................................................................................................... 3. 00

4. Enter private retirement and pension benefits reported on Form 4884, line 7. ............................. 4. 00

5. Enter $50,509 if single or $101,019 if filing jointly. ........................................................................ 5. 00

6. Subtract line 3 from line 5. If less than zero, enter $0. ................................................................. 6. 00

7. Enter the smaller of line 4 or line 6. ............................................................................................... 7. 00

8. Add line 2 and line 7. ..................................................................................................................... 8. 009. Enter $20,000 if single or $40,000 if filing jointly. Higher limits apply if you checked Schedule 1,

box 23C or 23F (see line 11 below). .............................................................................................. 9. 00

10. Enter the smaller of line 8 or line 9 here and on Form 4884, line 27. ............................................ 10. 00Calculation for filers with benefits from employment exempt from the Social Security Act11. Enter $20,000 if single or $40,000 if filing jointly. .......................................................................... 11. 00

12. If you checked box 23C or 23F on Schedule 1, enter $15,000 for each box checked. ................. 12. 00

13. Add line 11 and line 12. This is your maximum deduction for line 9 of this Worksheet. ............... 13. 00

19

Form 4884 Various ScenariosScenario 1: Single filer born after January 1, 1951 through December 31, 1952 (Tier 2) with retirement/pension benefits.Henryisfilingassingle.Hewasbornin1952andisreceivingaprivatepensionof$25,000withadistributioncodeof7.

Step1: Aftercompletinglines1and2,Henryenters1952online4.Step2: Hecompletesrow1ofline7byenteringanXinPrivatefor7A,the

payerFEINin7C,thedistributioncode7in7D,thenameofthepayerin7E,and$25,000in7F......................................................................... Line7F,Row1........................ $25,000

Step3: Henryreferstothequestionnaireonpage17todecidewhichSectionofForm4884istobecompleted.• Henryanswersyestoquestion1ashewasbornpriorto

January1,1953.• Heanswersnotoquestion2becausehewasnotbornduringthe

periodJanuary1,1946throughJanuary1,1951.• Heanswersnotoquestion3becausehewasnotbornpriorto

January1,1946.• Heanswersnotoquestion4becauseheisnotreceivingbenefits

fromadeceasedspouse.Basedonhisanswershecompletes SectionCofForm4884.

Step4: Sinceheissingleandhistotalpensionbenefitsareoverthemaximumallowed,Henryentersthemaximumof$20,000online27andontheSchedule1,line25..................................................................................

Line27......................................

Schedule1,Line25...................

$20,000

$20,000

Scenario 2: Joint filer with the older spouse born prior to January 1, 1946 (Tier 1) with private and public retirement/pension benefits.JerryandBeverlyarefilingajointreturn.Jerrywasbornin1943andisreceivingapublicpensionof$40,000withadistributioncodeof7.Beverlywasbornin1946andisreceivingaprivatepensionof$70,000withadistributioncodeof7.

Step1: Aftercompleting lines1 through3, JerryandBeverlyenter1943online4and1946online5.

Step2: Theycompleterow1ofline7byenteringanXinPublicfor7A,thepayerFEINin7C, thedistributioncode7 in7D, thenameofthepayerin7Eand$40,000in7F..................................................... Line7F,Row1........................ $40,000Theycompleterow2ofline7byenteringanXinPrivatefor7A,thepayerFEINin7C,thedistributioncode7in7D,thenameofthepayerin7Eand$70,000in7F..................................................... Line7F,Row2......................... $70,000

Step3: JerryandBeverly refer to thequestionnaireonpage17 todecidewhichSectionofForm4884istobecompleted.Theyansweryesto question 1, no to question 2, yes to question 3 and completeSectionAofForm4884.

Step4: Theyenter$101,019online8astheyaremarriedfilingjointly....... Line8....................................... $101,019

Step5: They enter $40,000 on line 9, the total of their public pensionbenefits............................................................................................... Line9....................................... $40,000

Step6: Theysubtractline9fromline8andenter$61,019online10.......... Line10.................................... $61,019

Step7: They enter $70,000 on line 11, the total of their private pensionbenefits............................................................................................... Line11..................................... $70,000

Step8: Theyleaveline12blankasitdoesnotapplytothem....................... Line12..................................... leaveblank

Step9: Theyenter$70,000online13,thetotaloflines11and12.............. Line13..................................... $70,000

Step10: Theyenter$61,019,thesmalleroflines10or13............................ Line14..................................... $61,019

Step11: Theyaddlines9and14,enter$101,019online15andcarrythisamounttoSchedule1,line25.

Line15......................................Schedule1,Line25...................

$101,019$101,019

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Scenario 4: Single filer born after January 1, 1951 through December 31, 1952 (Tier 2) with SSA exempt benefits.Moniqueisfilingassingle.Shewasbornin1952andisreceivingapensionof$25,000asaretiredfirefighter.

Step1: Aftercompletinglines1and2,Moniqueenters1952online4.

Step2: Shecompletes row1of line7byenteringanX inPublic for7A, the payer FEIN in 7C, the distribution code in 7D, thenameofthepayerin7E,andthe$25,000in7F. Line7F,Row1............................ $25,000

Step3: She refers to the questionnaire on page 17 to decide whichSectionofForm4884 is tobecompleted.Sheanswersyes toquestion1,notoquestion2,notoquestion3,notoquestion4andcompletesSectionCofForm4884.

Step4: Since she is single and receiving benefits from employmentthat was SSA exempt her maximum allowable pensiondeduction is increased from $20,000 to $35,000. She wouldenter $25,000, the lesser of her total retirement and pensionbenefits or the maximum allowable pension deduction, on line27andontheSchedule1,line25.NOTE: It is important for taxpayers with benefits that wereSSAexempttocheckthebox(es)online23oftheSchedule1.

Line27........................................Schedule1,Line2323A.............................................23B.............................................23C.............................................Schedule1,Line25....................

$25,000

195265X$25,000

Scenario 3: Married filing separately with filer born after January 1, 1951 through December 31, 1952 (Tier 2) and separated spouse born prior to January 1, 1946 (Tier 1).JamesandPhyllisaremarriedfilingseparately.Jameswasbornin1951andisreceivingapublicpensionof$50,000.Phylliswasbornin1941andisreceivingapublicpensionof$45,000.

Step1: As James is married filing separately, he completes lines 1and2, leaves the spouse’s name lineblank, and includes thespouse’sSocialSecuritynumberonline3.

Step2: Jamesenters1951online4andskipsline5.Step3: Hecompletes row1of line7byenteringanX inPublic for

7A, the payer FEIN in 7C, the distribution code in 7D, thenameofthepayerin7E,and$50,000in7F.............................. Line7F,Row1......................... $50,000

Step4: Jamesrefers to thequestionnaireonpage17todecidewhichSection of Form 4884 is to be completed. He answers yestoquestion1,no toquestion2,no toquestion3because theseparatedspouse’syearofbirthisnotrelevant,notoquestion4andcompletesSectionCofForm4884.

Step5: Since he is married filing separately and his total pensionbenefits are over the maximum allowed, James enters themaximum of $20,000 on line 27 and on the Schedule 1, line25.........................................................................................

Line27...................................Schedule1,Line25...................

$20,000$20,000

21

Scenario 5: Single filer born on or after January 1, 1953 but before January 2, 1956 (Tier 3) with SSA exempt benefits.Leighisfilingassingle,wasbornin1953,andisreceivingSSAexemptpensionof$8,000andaprivatepensionof$10,000.

Step1: Aftercompletinglines1and2,Leighenters1953online4.Step2: Leigh completes row 1 of line 7 by entering an X in Public

for7A,thepayerFEINin7C,thedistributioncodein7D,thenameofthepayerin7Eand$8,000in7F.Leigh completes row 2 of line 7 by entering anX in Privatefor7A,thepayerFEINin7C,thedistributioncodein7D,thenameofthepayerin7Eand$10,000in7F.

Line7F,Row1............................ $8,000

Line7F,Row2............................ $10,000Step3: Leigh refers to the questionnaire on page 17 to decide which

section of Form 4884 is to be completed. She answers no toquestion1,butbecauseshehasreachedage62andreceivesSSAexemptretirementbenefits,shecompletesForm4884,SectionD.

Step4: Since Leigh is single, she enters $15,000,which is the lesserof her total retirement and pension benefits ($18,000) or themaximum allowable pension deduction ($15,000) on line 28andontheSchedule1,line25.NOTE: It is important for taxpayers with benefits that wereSSAexempttocheckthebox(es)online23oftheSchedule1.

Line28........................................Schedule1,Line2323A.............................................23B.............................................23C.............................................Schedule1,Line25....................

$15,000

195364X$15,000

Scenario 6: Joint filers, with the older spouse born prior to January 1, 1946 (Tier 1) who died during the tax year with private pension benefits.BobandMaryarefilingajointreturn.Bob,bornin1944,hasaprivatepensionof$55,000.BobdiedonOctober15,2017.Bobreceiveda1099-Rfor$50,000withadistributioncodeof7andMaryreceiveda1099-Rfor$5,000withadistributioncodeof4fortheremainderofBob’spension.Mary,bornin1952,isreceivingapublicpensionof$70,000withadistributioncodeof7.

Step1: Aftercompletinglines1through3,Maryenters1944online4and1952online5.Marydoesnotcompleteline6orcheck7BbecauseBobdiedduringthecurrenttaxyear.

Step2: Marycompletesrow1ofline7byenteringanXinPrivatefor7A, the payer FEIN in 7C, the distribution code 7 in 7D, thenameofpayerin7E,and$50,000in7F......................................... Line7F,Row1......................... $50,000Shecompletesrow2ofline7byenteringanXinPrivatefor7A,thepayerFEINin7C,thedistributioncode4in7D,thenameofpayerin7E,and$5,000in7F......................................................... Line7F,Row2......................... $5,000Shecompletesrow3ofline7byenteringanXinPublicfor7A,thepayerFEINin7C,thedistributioncode7in7D,thenameofpayerin7E,and$70,000in7F....................................................... Line7F,Row3......................... $70,000

Step3: Mary refers to the questionnaire on page 17 to decide whichSection of Form4884 is to be completed. She answers yes toquestion 1, no to question 2, yes to question 3 and completesSectionAofForm4884.

Step4: Sheenters$101,019online8assheisfilingjointly..................... Line8........................................ $101,019Step5: Sheenters$70,000,herpublicpension,online9.......................... Line9........................................ $70,000Step6: Shesubtractsline9fromline8andenters$31,019online10...... Line10...................................... $31,019Step7: Sheenters$55,000,thetotalprivatepensionbenefits,online11. Line11...................................... $55,000

Step8: Mary leaves line12blankasBob isnotconsideredadeceasedspouseforpurposesofthisreturn;theyarefilingjointly............. Line12...................................... leaveblank

Step9: Maryenters$55,000online13,thetotaloflines11and12......... Line13...................................... $55,000Step10: Sheenters$31,019,thesmalleroflines10or13............................ Line14...................................... $31,019

Step11: Sheaddslines9and14,enters$101,019online15andcarriesthisamounttoSchedule1,line25.................................................

Line15......................................Schedule1,Line25..................

$101,019$101,019

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Scenario 8: Joint filers born after 1952 (Tier 3) with retirement/pension benefits and receiving surviving benefits from a deceased spouse born in 1949 (Tier 2).MarkandNancyarefilingajointreturn.Mark,bornin1953,isreceivingaprivatepensionof$25,000.Nancywasbornin1953.Nancy’sdeceasedspouse,Eduardo,wasbornin1949anddiedin2008.Nancyisreceiving$35,000insurvivingspousepensionbenefitsfromEduardo’sprivatepension.Step1: After completing lines 1 through 3, Mark and Nancy enter

1953online4and1953online5.Nancyisreceivingpensionbenefitsfromadeceasedspousesoshethencompletesline6.SheentersEduardo’sfullnameonline6a,hisSocialSecuritynumberonline6b,and1949online6c.

Step2: AsMarkandNancywerebothborninTier3Mark’spensionis not deductible and should not be listed on line 7 of Form4884.Theycompleterow1ofline7byenteringanXinPrivatefor7A,anXin7B,thepayerFEINin7C,thedistributioncodein7D,thenameofpayerin7E,and$35,000in7F. Line7F,Row1........................... $35,000

Step3: They refer to the questionnaire on page 17 to decide whichSectionofForm4884istobecompleted.Theyansweryestoquestion1,notoquestion2,notoquestion3,notoquestion4andcompleteSectionCofForm4884.

Step4: They are married filing jointly and enter the total of theirbenefits from line 7 of $35,000, since it is less than themaximum of $40,000, on line 27 and on the MichiganSchedule1,line25.....................................................................

Line27........................................Schedule1,Line25...................

$35,000$35,000

Scenario 7: Filer and spouse both born after December 31, 1952 (Tier 3).ScottandLisaarefilingajointreturn.Scott,bornin1954,isreceivingprivatepensionbenefitsof$30,000.Lisa,bornin1957,isreceivinganIRAdistribution(privatepension)of$20,000.

Step1: As both Scott and Lisawere born afterDecember 31, 1952and did not check box 23C or 23F on Schedule 1, they arenot entitled to apension subtraction.Donot completeForm4884.......................................................................................... DonotfileForm4884.

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Scenario 9: Joint filers born after 1952 (Tier 3) with retirement/pension benefits and receiving surviving benefits from a deceased spouse born in 1944 (Tier 1).HowardandGeorgiaarefilingajointreturn.Howard,bornin1953,isreceivingaprivatepensionof$40,000.Georgiawasbornin1955.Howard’sdeceasedspouse,Edith,wasbornin1944anddiedin2006.Howardisreceiving$30,000insurvivingspousepensionbenefitsfromEdith’sprivatepension.

Step1: After completing lines 1 through 3, Howard and Georgiaenter1953online4and1955online5.Howardisreceivingpension benefits from a deceased spouse so he thencompletesline6.HeentersEdith’sfullnameonline6a,herSocialSecuritynumberonline6b,and1944online6c.

Step2: As Howard and Georgia were both born in Tier 3 theirpensionbenefitsarenotdeductibleandshouldnotbe listedonline7ofForm4884.Theycomplete row1of line7byenteringanX inPrivatefor7A,anX in7B, thepayerFEIN in7C, thedistributioncodein7D,thenameofpayerin7E,and$30,000in7F......... Line7F,Row1...................... $30,000

Step3: They refer to thequestionnaireonpage17 todecidewhichSection of Form 4884 is to be completed. They answeryes toquestion1,no toquestion2,no toquestion3,yes toquestion4andcompleteSectionBofForm4884.

Step4: Theyenter$101,019online16astheyarefilingjointly........ Line16................................... $101,019

Step5: They leave line 17 blank because they are not receivingpublicbenefitsfromEdith....................................................... Line17.................................... leaveblank

Step6: Theysubtractline17fromline16andenter$101,019online18..................................................................................... Line18.................................... $101,019

Step7: Theyenter$30,000,privatebenefitsreceivedfromHoward’sdeceasedspouse,Edith,online19........................................... Line19.................................... $30,000

Step8: Theyenterthesmalleroflines18or19,$30,000,online20. Line20.................................... $30,000

Step9: HowardandGeorgiaaddlines17and20andenter$30,000online21.................................................................................. Line21.................................... $30,000

Step10: Since Howard and Georgia are born in Tier 3 and do nothavedeductiblebenefitstheywouldleaveline22blank........ Line22.................................... leaveblank

Step11: Theyenter$40,000online23astheyarefilingjointly.......... Line23.................................... $40,000

Step12: Sinceline21islessthanline23theyenter$10,000online24...................................................................................... Line24.................................... $10,000

Step13: Theyenterthesmalleroflines22or24,zero,online25...... Line25.................................... $0

Step14: Theyadd lines21and25andenter$30,000on line26andSchedule1,line25...................................................................

Line26....................................Schedule1,Line25................

$30,000$30,000

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Scenario 10: Single filer born after January 1, 1951 through December 31, 1952 (Tier 2) receiving surviving benefits from a deceased spouse born in 1939 (Tier 1).Alice,bornin1952,isasurvivingspousefilingasinglereturn.HerdeceasedhusbandMiguelwasbornin1939anddiedin2010.Alicehaspublicpensionbenefitsof$37,500andisalsoreceivingsurvivingspousebenefitsfromMiguel’spublicpensionof$69,000.

Step1: Aftercompletinglines1and2,Aliceenters1952online4.Aliceis receivingpensionbenefits fromadeceasedspousesoshe thencompletes line 6. She entersMiguel’s full name on line 6a, hisSocialSecuritynumberonline6b,and1939online6c.

Step2: Shecompletesrow1ofline7byenteringanXinPublicfor7A,the payer FEIN in 7C, the distribution code in 7D, the name ofpayerin7E,and$37,500in7F.Shecompletesrow2ofline7byenteringanXinPublicfor7A,enteringanXin7B,thepayerFEINin7C,thedistributioncodeof4in7D,thenameofpayerin7E,and$69,000in7F...................

Line7F,Row1.......................

Line7F,Row2.......................

$37,500

$69,000

Step3: Alice refers to the questionnaire on page 17 to decide whichSection of Form 4884 is to be completed. She answers yes toquestion1, no to question2, no to question3, yes to question4andcompletesSectionBofForm4884.

Step4: Sheenters$50,509online16becausesheisfilingsingle............... Line16.................................... $50,509

Step5: She enters $69,000, public benefits received from her deceasedspouse,Miguel,online17................................................................. Line17.................................... $69,000

Step6: Sinceline17ismorethanline16,sheenterszeroonline18.......... Line18.................................... $0

Step7: She leaves line 19 blank because she is not receiving privatebenefitsfromherdeceasedspouse................................................... Line19.................................... leaveblank

Step8: Sheentersthesmalleroflines18or19,sheenterszeroonline20. Line20..................................... $0

Step9: Aliceaddslines17and20andenters$69,000online21................ Line21.................................... $69,000

Step10: Sheenters$37,500online22,thetotalofherbenefits.................... Line22.................................... $37,500

Step11: Aliceenters$20,000online23assheisfilingsingle..................... Line23.................................... $20,000

Step12: Sinceline21ismorethanline23sheenterszeroonline24........... Line24.................................... $0

Step13: Sheentersthesmalleroflines22or24,zero,online25................. Line25.................................... $0

Step14: Alice adds lines 21 and 25 and enters $69,000 on line 26 andSchedule1,line25............................................................................

Line26....................................Schedule1,Line25................

$69,000$69,000

Scenario 11: Filer and spouse both born in Tier 2 with the older spouse born in 1948.William and Betty areMichigan residents and are filing a joint return.William, born in 1951, is receiving public pensionbenefitsof$10,000andwagesfromapart-timejob.Betty,bornin1948,isreceivingprivatepensionbenefitsof$20,000.

Step1: AstheolderofWilliamandBettywasbornin1948(age69in2017), they do not complete Form 4884 and instead completeSchedule 1, lines 23 and 24 for the Michigan StandardDeduction.Thisstandarddeductionappliesagainstallincome(pension,wages,interest,etc.)..................................................... DonotfileForm4884.

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General Information - Homestead Property Tax Credit (MI-1040CR)The request for your Social Security number is authorizedunderUSCSection42.SocialSecuritynumbersareusedbyTreasurytoconductmatchesagainstbenefitincomeprovidedby the Social Security Administration and other sourcesto verify the accuracy of the home heating and propertytax credit claims filed for mandatory federal reportingrequirementsandtodeterfradulentfilings.

Who May Claim a Property Tax CreditYoumay claim a property tax credit if all of the followingapply:• YourhomesteadislocatedinMichigan• YouwereaMichiganresidentatleastsixmonthsof2017• You pay property taxes or rent on your Michigan

homestead• You were contracted to pay rent, or own the home in

whichyoulive.Youcanhaveonlyonehomesteadatatime,andyoumustbetheoccupantaswellastheownerorrenter.Yourhomesteadcan be a rented apartment or a mobile home on a lot in amobile home park.A vacation home or income property isnot consideredyourhomestead.Yourhomesteadisinyourstateofdomicile.Domicileistheplacewhere youhaveyour permanent home. It is the placetowhichyouplan toreturnwheneveryougoaway.Collegestudents and others whose permanent homes are not inMichigan are not Michigan residents. Domicile continuesuntilyouestablishanewpermanenthome.Property tax credit claims may not be submitted onbehalf of minor children. Filers claimed as a dependenton someone else’s return see instructions for line 24 onpage31tocorrectlyreportsupportreceived.You may not claim a property tax credit if your total household resources are over $50,000. In addition, youmay not claim a property tax credit if your taxable valueexceeds $135,000 (excluding vacant farmland classified asagricultural).The computed credit is reducedby10percentfor every $1,000 (or part of $1,000) that total householdresources exceed $41,000. If filing a part-year return, youmustannualizetotalhouseholdresourcestodetermineiftheincomelimitationapplies.See“AnnualizingTotalHouseholdResources”onpage28.Which Form to FileMostfilersshouldusetheMI-1040CRinthisbooklet.Ifyouareblindandownyourhomestead,areintheactivemilitary,are an eligible veteran, or an eligible veteran’s survivingspouse, complete forms MI-1040CR and MI-1040CR-2(availableonTreasury’sWebsite.)Use the form that gives you a larger credit. If you are blind and rent your homestead, you cannot usetheMI-1040CR-2.ClaimyourcreditontheMI-1040CRandcheckbox5b ifyouareage65oryounger.Checkboxes5aand5bifyouareblindandage65orolder.

When to FileIf you are not required to file an MI-1040, you mayfile your credit claim as soon as you know your 2017total household resources and property taxes levied in2017. If you file a Michigan income tax return, yourcredit claim should be included with your MI-1040return and filed by April 17, 2018 to be consideredtimely. To avoid penalty and interest, if you owe tax,postmark your return no later than April 17, 2018. Thefiling deadline to receive a 2017 property tax credit is April15,2022.Amending Your Credit ClaimFileanewclaimformandchecktheAmendedReturnboxatthetopofpage1oftheform.If applicable, include a copy of your property tax statement(s) and/or lease agreement. Youmustfilewithinfouryearsofthedatesetforfilingyouroriginalincometaxreturn.Delaying Payment of Your Property TaxesSeniorcitizens,disabledpeople,veterans,survivingspousesof veterans, and farmers may be able to delay payingproperty taxes. Contact your local or county treasurer formoreinformation.Total Household ResourcesTotal household resources are the total income (taxable andnontaxable)ofbothspousesorofasinglepersonmaintainingahousehold.TheyareAGI,excludingnetbusinessandfarmlosses,netrentandroyaltylosses,andanycarryoverofanetoperatingloss,plusallincomeexemptorexcludedfromAGI.Total household resources include the following items not listed on the form:• Capitalgainson thesaleofyourresidenceregardless if thegainsareexemptfromfederalincometax

• Compensation for damages to character or for personalinjuryorsickness

• Aninheritance(exceptaninheritancefromyourspouse)• Proceedsofalifeinsurancepolicypaidonthedeathofthe

insured(exceptbenefitsfromapolicyonyourspouse)• Deathbenefitspaidbyoronbehalfofanemployer• Minister’shousingallowance• Forgiveness of debt, even if excluded from AGI (e.g.,

mortgageforeclosure)• Reimbursement fromdependentcareand/ormedicalcare

spendingaccounts• Scholarships, stipends, grants, and payments, except

governmentpayments,madedirectlytothirdpartiessuchasaneducationalinstitutionorsubsidizedhousingproject.

Total household resources do NOT include:• Netoperatinglossdeductionstakenonyourfederalreturn• Payments received by participants in the foster

grandparentorseniorcompanionprogram• Energyassistancegrants

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• Governmentpaymentsmadedirectlytoathirdparty(e.g.,paymentstoadoctor,GIBillbenefitsandpaymentsfromaPELLgrant).NOTE: If payment is made from money withheld fromyour benefit, the payment is part of total householdresources. (For example, theMDHHSmaypayyour rentdirectlytothelandlord.)

• Money received from a government unit to repair orimproveyourhomestead

• Surplusfoodorfoodassistanceprogrambenefits• Stateandcityincometaxrefundsandhomesteadproperty

taxcredits• Choreservicepayments(thesepaymentsareincometothe

provideroftheservice)• The first $300 from gambling, bingo, lottery, awards, or

prizes• Thefirst$300ingiftsofcashormerchandisereceived,or

expenses paid on your behalf (rent, taxes, utilities, food,medicalcare,etc.)byparents,relatives,orfriends

• Amounts deducted from Social Security or RailroadRetirementbenefitsforMedicarepremiums

• Life, health, and accident insurance premiums paid byyouremployer

• Loanproceeds• Inheritancefromaspouse• Lifeinsurancebenefitsfromaspouse• Paymentsfromalong-termcarepolicymadetoanursing

homeorothercarefacility• MostpaymentsfromTheStepForwardMichiganprogram.Visit www.michigan.gov/taxtotalhouseholdresources formoreinformationontotalhouseholdresources.Special Provisions for FarmersIf you received a farmland preservation tax credit in 2017,you must include it in total household resources. You maysubtractthebusinessportionofyourhomesteadpropertytaxcreditifyouincludeditintaxablefarmincome.Property Taxes Eligible for CreditAd valorem property taxes that were levied on yourhomestead in 2017, including administrative collectionfeesup to1percent of the taxes, canbe claimednomatterwhen you pay them. You may add to your 2017 taxes theamount of property taxes billed in 2017 from a correctedor supplemental tax bill. Youmustdeduct from your 2017propertytaxesanyrefundofpropertytaxesreceivedin2017thatwasaresultofacorrectedtaxbillfromapreviousyear.Do not include: • Delinquent property taxes (e.g., 2016property taxespaid

in2017)• Penaltyandinterestonlatepaymentsofpropertytax• Delinquentwaterorsewerbills• Propertytaxesoncottagesorsecondhomes• Associationduesonyourproperty• Mostspecialassessmentsfordrains,sewers,androadsdo

notmeetspecifictestsandmaynotbeincluded.Youmayincludespecialassessmentsonlyiftheyareleviedusingauniformmillagerate,arebasedontaxablevalue,andareeither levied in the entire taxing jurisdiction or they are

used to provide police, fire, or advanced life supportservicesandareleviedtownship-wide,exceptforalloraportionofavillage.

NOTE: School operating taxes are generally only leviedon the non-homestead portion of the property and may notbe included in taxes leviedwhencomputing theproperty taxcreditonanyportionofthehomenotusedasyourhomestead.Home used for business. If you use part of your home forbusiness,youmayclaimthepropertytaxesonthelivingareaofyourhomestead,butnot theproperty taxeson theportionusedforbusiness.IncludeacopyofU.S.Form8829 withyourMichiganreturn.Owner-occupied duplexes. When both units are equal,you are limited to 50 percent of the tax on both units, aftersubtracting the school operating taxes from the total taxesbilled.Owner-occupied income property. Apartmentbuildingandduplex ownerswho live in one of the units or single familyhomeownerswhorentaroom(s)toatenant(s)mustcompletetwocalculationstofigurethetaxtheycanclaimandbasetheircredit on the lower amount. First, subtract 20 percent of therentcollectedfromthetaxclaimedforcredit.Second,reducethe tax claimed for credit by the amount of tax claimed asrentalexpenseonyourU.S.Form1040. IncludeacopyoftheU.S.Schedule E withyourMichiganreturn.Example:Yourhomehasanupstairsapartmentthatisrentedtoatenantfor$395permonth. Totalpropertytaxesonyourhome are $2,150. Of this amount, $858 is claimed as rentalexpense.Thecalculationsareasfollows:Step 1: $395x12=$4,740annualrent$4,740x0.20=$948taxesattributabletotheapartment$2,150totaltaxes-$948=$1,202taxesattributabletoowner’shomesteadStep 2:$2,150 total taxes - $858 taxes claimed as a businessdeduction=$1,292taxesattributabletohomesteadStep 3:Theowner’staxesthatcanbeclaimedforcreditare$1,202,thesmallerofthetwocomputations.Farmers. Includefarmlandtaxesinyourpropertytaxcreditclaimifanyofthefollowingconditionsapply:• Ifyourgrossreceiptsfromfarmingaregreaterthanyour

totalhouseholdresources,youmayclaimallofyourtaxesonunoccupiedfarmlandclassifiedasagricultural.Donot include taxes on farmland that is not adjacent orcontiguous to your home and that you rent or lease toanotherperson.

• If gross receipts from farming are less than your totalhousehold resources and you have lived in your homemore than ten years, you may claim the taxes on yourhome and the farmland adjacent and contiguous to yourhome.

• If gross receipts from farming are less than your totalhouseholdresourcesandyouhavelivedinyourhomeless thantenyears,youmayclaimthetaxesonyourhomeandfive acres of farmland adjacent and contiguous to yourhome.

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You may not claim rent paid for vacant farmland whencomputingyourpropertytaxcreditclaim.FarmlandownedbyaLimitedLiabilityCompany(LLC)maynotbeclaimedforahomesteadpropertytaxcreditbyoneoftheindividualmembers.Include any farmland preservation tax credit in your totalhouseholdresources.Entertheamountofcredityoureceivedin2017online20orincludeitinnetfarmincomeonline16.Homestead property tax credits are not included in totalhousehold resources. If you included this amount in yourtaxable farm income, subtract it from total householdresources.Rent Eligible for CreditYoumustbeunderaleaseorrentalcontracttoclaimrentforcredit. Inmost cases, 20 percent of rent paid is consideredproperty tax that can be claimed for credit. The followingareexceptions:• Ifyourentorleasehousingsubjecttoaservice charge or

fees paidinsteadofpropertytaxes,youmayclaimacreditbasedupon10percentofthegrossrentyoupaid.Enterthisamounton line55and10percentof rentpaidon line56,andfollowinstructions.

• If your housing is exempt from property tax and noservice fee ispaid,youarenoteligible foracredit.This includes university- or college-owned housing.

• Ifyour housing costs are subsidized,baseyourclaimonthe amount you pay. Do not include the federal subsidyamount.

• Ifyouareamobile home park resident,claimthe$3permonthspecifictaxonline10,andthebalanceofrentpaidonline11.

• If you are a cooperative housing corporation resident member, claim your share of the property taxes on thebuilding.Ifyoulive inacooperativewhereresidentspayrentonthelandunderthebuilding,youmayalsoclaim20percentof that landrent.NOTE:Donot take20percentofyourtotalmonthlypayment.

• If you are a resident of a special housing facility (notnotedabove),baseyourclaimonrentonly.Do notincludeotherservices.Ifyoupayrentwithotherservicesandyouare unable to determine the portion that constitutes rentonly, you may determine your portion of the propertytaxes that can be claimed for credit based on squarefootage,or,dividethetaxesbythenumberofresidentsforwhomthehomeislicensedtocare.Thisinformationmaybe obtained from your housing facility. Visit www.michigan.gov/iit for more information aboutclaimantslivinginspecialhousingfacilities.

Example:Youpay$750permonthforroomandboard.Youoccupy 600 square feet of a 62,000 square foot apartmentbuilding. The landlord pays $54,000 in taxes per year.Step 1: 600/62,000=0.0097Step 2: $54,000x0.0097=$524taxesyoucanclaimforcreditHome used for business. Ifyouusepartofyourapartmentor rentedhome forbusiness,youmayclaim the renton thelivingareaofyourhomestead,butnottherentontheportionusedforbusiness.

If You Moved in 2017Residents who temporarily lived outside Michigan mayqualify for a credit if Michigan remained their state ofdomicile. Personal belongings and furnishings must haveremained in the Michigan homestead and the homesteadmustnot have been rented or sublet during the temporaryabsence. (See the definitions of resident on page 6 anddomicileonpage25.)If you bought or sold your home or moved during 2017, you must prorate your taxes. Complete MI-1040CR, Part 3, to determine the taxes that can be claimed forcredit.Useonly the taxes levied in2017oneachMichiganhomestead, thenprorate taxesbasedondaysofoccupancy.Donot includetaxesonout-of-stateproperty.Donotincludeproperty taxes for property with a taxable value greaterthan$135,000.Excludedfromthisrestrictionisunoccupiedfarmlandclassifiedasagriculturalbyyourassessor.Part-Year ResidentsIfyoulivedinMichiganatleastsixmonthsduringtheyear,youmaybeentitledtoapartialcredit.Ifyouareapart-yearresident,youmustincludeallincomereceivedasaMichiganresident in total household resources (line 33). Complete MI-1040CR, Part 3, to determine the taxes eligible to beclaimedforcreditonyourMichiganhomestead.Deceased Claimant’s CreditThe estate of a taxpayer who died in 2017 (or 2018 beforefiling a claim) may be entitled to a credit for 2017. Thesurviving spouse, other authorized claimant, or personalrepresentativecanclaimthiscredit.Usethedecedent’sSocialSecuritynumberandthepersonalrepresentative’saddress.IfthetaxpayerdiedafterDecember31,2016,enterthedateofdeathinthe“DeceasedTaxpayer”boxonpage3.Thesurviving spouse isconsideredmarried for theyear inwhich the deceased spouse died andmay file a joint creditforthatyear.EnterbothnamesandSocialSecuritynumberson theform,andwrite“DECD”after thedecedent’s name.Sign the return and write “filing as surviving spouse” inthedeceased’s signature line.Enter thedateofdeath in the“DeceasedTaxpayer”boxon thebottomofpage3. Includethedecedent’sincomeintotalhouseholdresources.If filing as a personal representative or claimant for therefund of a single deceased taxpayer, you must include a U.S. Form 1310 or Michigan Claim for Refund Due a Deceased Taxpayer (MI-1310). Enter the decedent’s nameintheFiler’sNamelineandtherepresentative’sorclaimant’sname, title and address in theHomeAddress line. See the“Deceased Taxpayer Chart of Examples” on page 59. A claimant must prorate to the date of death as noted in thefollowingparagraph.Thepersonal representative or claimant claimingacreditfor a single deceased person or on a jointly filed credit ifboth filersbecamedeceasedduring the2017 taxyear,mustproratetaxestothedateofdeath.Completelines47through51 toprorate theproperty taxes. Annualize totalhouseholdresources.(Seetheinstructionsonpage28.)Includeacopyof the taxbillsor leaseagreements. If filingasapersonal representative or claimant of deceased taxpayers for a

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jointly filed return, you must include a U.S. Form 1310 or Michigan Claim for Refund Due a Deceased Taxpayer (MI-1310). Enter the names of the deceased persons in theFiler’s and Spouse’s Name lines and the representative’s orclaimant’sname,title,andaddressintheHomeAddressline.See“DeceasedTaxpayerChartofExamples”onpage59.Annualizing Total Household ResourcesIfyouarefilingapart-yearcredit(foradeceasedtaxpayerorapart-yearresident),youmustannualizethetotalhouseholdresources to determine if the credit reduction applies.(Exception:thesurvivingspousefilingajointclaimdoesnothavetoannualizethedeceasedspouse’sincome.)• Ifyouhavecheckedaboxonline5andyourannualized

total household resources are less than $6,000 use yourannualized total household resources to determine yourpercentage of taxes not refundable from MI-1040CRTable2onpage32.

• A senior, age 65 or older, filing a part-year credit mustcalculate annualized total household resources beforeusingMI-1040CRTableAonpage32.

• If the annualized income is more than $41,000 for anyclaimant, use annualized total household resources todetermine the percentage allowable in MI-1040CR TableBonpage32.

To annualize total household resources (project what it would have been for a full year):Step 1: Divide365bythenumberofdaysthetaxpayerwasaMichiganresidentin2017.Step 2: Multiply the answer from step 1 by the taxpayer’stotalhouseholdresources(MI-1040CR,line33).Theresultistheannualizedtotalhouseholdresources.Married During 2017Ifyoumarriedduring2017,combineeachspouse’sshareoftaxesorrentfortheperiodoftimeyouoryourspouselivedin separate homesteads prior to getting married. Then addthistotheproratedtaxesorrentforyourmaritalhomeafteryourmarriage.YouareonlyallowedtoclaimrentandtaxesonhomesteadslocatedinMichigan.Filing a Joint Return and Maintaining Separate HomesteadsYour claimmust bebasedon the taxor rent for 12monthsononlyonehome.Thetotalhouseholdresourcesmustbethecombinedincomeofbothyouandyourspousefortheentireyear.Married Filing Separately and Divorced or Separated Claimants Schedule (Form 5049)This form can be found at www.michigan.gov/taxes.SubmitForm5049withFormMI-1040CR,MI-1040CR-2or MI-1040CR-7ifanyofthefollowingsituationsapplytoyou:• You filed asmarried filing separately, and you and your

spousemaintainedseparatehomesteadsallyear.CompleteonlyPart3ofForm5049.

• You filed asmarried filing separately, and you shared ahomesteadwithyourspouseallyear.

• You filed asmarried filing separately, and you and yourspouse maintained separate homesteads at the end oftheyear.

Filing Separate State Returns and Maintaining Separate HomesteadsSpouseswho file separateMichigan income tax returns anddidnotshareahouseholdduringthetaxyearmayeachclaimacredit.Eachcreditisbasedontheindividualtaxesorrentandindividual total household resources for each person. Thisonly applies to homes located inMichigan. They eachmustcompleteForm5049andprovideanexplanationinPart3.Married Filing Separately and Shared a HomesteadSpouseswho file separateMichigan income tax returnsbutshared a homestead for the entire year are entitled to oneproperty tax credit. The credit claimmust be based on thetotal household resources of both spouses during the timethe homestead was shared. A spouse claiming the creditmust complete Form 5049 and include the total householdresources for both spouses. A spouse filing the creditshould also include the other spouse’s income on theOtherNontaxable Income line of the Homestead Property TaxCredit Claim. You and your spouse may choose how youwanttodividethecredit.Ifeachspouseclaimsaportionofthecredit,includeacopyoftheclaimshowingeachspouse’sshare of the creditwith each income tax return.Enter onlyyourportionofthecreditonyourMI-1040CR,line44.Separated or Divorced in 2017Figure your credit based on the taxes you paid togetherbefore your separation plus the taxes you paid individuallyafter your separation. Complete and include Form 5049and include a schedule showing your computation. Formore information or to help you calculate a proratedshare of taxes, see Michigan Homestead Property Tax Credits for Separated or Divorced Taxpayers (Form2105).Example: Karl andCathy separated onOctober 2, 2017.Theannual taxes on the home they owned were $1,860. CathycontinuedtoliveinthehomeandKarlmovedtoanapartmentonOctober2andpaid$350permonthrentfor therestof theyear. Cathy earned $20,000 and Karl earned $25,000. Theylivedtogetherfor274days.Step 1: Calculatetheproratedtotalhouseholdresourcesforeachspouseforthe274daystheylivedtogether.Divideeachspouse’s total incomeby365days, thenmultiplythatfigureby274.Cathy($20,000/365)x274=$15,014Karl($25,000/365)x274=$18,767Cathy and Karl must each complete Form 5049 and listincomeearnedduringtheperiodtheylivedtogether.Step 2: Add both prorated total household resourcestogether to determine the total for the time they livedtogether.$15,014+$18,767=$33,781Step 3: Divide each individual’s prorated share of totalhouseholdresourcesbythetotalfromStep2todeterminethepercentageattributabletoeach.Cathy$15,014/$33,781=44%Karl$18,767/$33,781=56%

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Step 4: Calculatetheproratedtaxeseligibleforcreditforthetimetheylivedtogether.Dividethe$1,860by365days,thenmultiplyby274days.($1,860/365)x274=$1,396Step 5: Calculate each individual’s share of the proratedtaxes.Multiply the$1,396by thepercentagesdetermined inStep3.Cathy$1,396x44%=$614Karl$1,396x56%=$782EntertheseamountsonMI-1040CR,line50,columnB.Cathy uses lines 47 through 50, columnA, to compute hershareoftaxesfortheremaining91days.Karluseslines52and53tocomputehisshareofrent.Eachcompletes the remaining lines of MI-1040CR according totheforminstructions.Residents of Adult Care Homes including Assisted Living FacilitiesIf you are a resident of a nursing home, adult foster carehome, or home for the aged; including assisted livingfacilities, that facility is considered your homestead. If thefacility provides an itemized statement that separates rentfromother services, baseyour credit on rent. If the facilitydoes not provide an itemized statement and pays localpropertytaxes(manydonot),youmayclaimyourportionofthosetaxesforcredit.Askthefacilitymanagerforyourshareofthetaxes.Ifyouwishtodetermineyourshareofthetaxesyourself:• Foralicensedfacility,dividetheamountofpropertytaxes

levied in 2017 by the number of residents for which thefacilityislicensed.

• For an unlicensed facility, divide the square footage theclaimantoccupiesbythesquarefootageofthefacilityandmultiplytheresultbythetotalpropertytaxesleviedonthefacility.

If both you and your spouse live in the facility, add yourshares together. If you lived in the facility only part of theyear, multiply this amount by the portion of the year youlivedatthefacility.

Exception: Creditisnotallowedifyourcarefacilitychargesarepaiddirectlytothefacilitybyagovernmentagency.If you maintain a homestead and your spouse lives in anadultcarehome,youmayfilea jointcreditclaim.Computeyour claim using the tax on your homestead and yourspouse’srentorshareofthefacility’spropertytax.If you are single and maintain a homestead (that is not rented)while living in an adult care home, youmay claimeitheryourhomesteadoryourshareofthefacility’spropertytax,butnotboth.Usetheonethatgivesyouthelargercredit.Single Adults Sharing a HomeWhentwoormoresingleadultsshareahome,eachmayfilea credit claim if each has contracted to pay rent or owns ashareofthehome.Eachadultshouldfileanindividualclaimbased on his or her total household resources and proratedshare of taxes or rent paid. Additional information can befoundonTreasury’sWebsite.

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Line-by-Line Instructions for Homestead Property Tax Credit (MI-1040CR)Lines not listed are explained on the form.Amended return box: Ifamendingyour2017credit,checktheboxatthetopoftheform.Seepages7and25.Lines 1, 2, and 3: Enter your name(s), address, and fullnine-digitSocialSecuritynumber(s). If youaremarried filingseparately,enterbothSocialSecuritynumbers,butdonotenteryourspouse’sname.Line 5: ChecktheboxthatappliestoyouoryourspouseasofDecember31,2017,ifany.Ifbothboxes5aand5bapply,checkboth.Line 5a: Age 65 or older. This includes the unremarriedsurvivingspouseofapersonwhowas65orolderatthetimeofdeath.Youareconsidered65thedaybeforeyour65thbirthday.Line 5b: Deaf, blind, hemiplegic, paraplegic, quadriplegic, or totally and permanently disabled. • Deaf means the primary way you receive messages is

through a sense other than hearing (e.g., lip reading orsignlanguage)

• Blindmeansyourbettereyepermanentlyhas20/200visionor less with corrective lenses, or your peripheral field ofvisionis20degreesorless.

• TotallyandpermanentlydisabledmeansdisabledasdefinedunderSocialSecurityGuidelines42USC416.If you are age 66 or older, you may not file a claim as totally and permanently disabled.

Line 6: Filing Status. Check the box to identify your filingstatus.AllcoupleswhoaremarriedunderthelawsoftheStateofMichigan,orunderthelawsofanotherstate,andaretreatedasmarried for federal taxpurposesmust claimeithermarriedfilingjointlyormarriedfilingseparatelystatusonthepropertytaxcredit.Ifyoufileajointfederalreturn,youmustfileajointproperty taxcredit. Ifyoufiledmarriedfilingseparately,youmust include the total household resources of both spousesunless you filed separate federal returns and maintainedseparatehomesteads.Ifyoufiledyourfederalreturnasheadofhouseholdorqualifyingwidow(er),fileyourpropertytaxcreditassingle.Line 7: Residency. Check the box that describes yourMichigan residency for 2017. If you and your spouse had adifferent residency status during the year, check a box foreachofyou.Ifyoucheckedboxc,enterthedatesofMichiganresidencyin2017.Property TaxLine 8: Homestead Status. Check this box if the taxablevalue of your homestead includes unoccupied farmlandclassifiedasagriculturalbyyourassessor.Line 9: If the taxable value of your homestead is greater than $135,000, STOP; you are not eligible for the homestead property tax credit. If your taxable value isless than $135,000, enter the 2017 taxable value from your2017 property tax statement or assessment notice. If you donot know your taxable value, contact your local assessor.Farmers should include the taxable value of all land thatqualifies for this credit (see instructions for farmers onpage 26).Farmers should note that the $135,000 limit on

taxable value does not apply to the taxable value of their homestead attributable to unoccupied farmland classified as agricultural.Line 10: Read “Property Taxes Eligible for Credit” on page26beforeyoucompletethisline.Line 11: Read“RentEligible forCredit”onpage27beforeyoucompletethisline.

Total Household ResourcesInclude all taxable and nontaxable income you and yourspouse received in 2017. If your family lived in Michiganand one spouse earned wages outside Michigan, includethe income earned both in and out-of-state in your totalhousehold resources. (See “Total Household Resources,” page25.)Line 14: Enter all compensation received as an employee.Include strike pay, supplemental unemployment benefits(SUB pay), sick pay, or long-term disability benefits,including income protection insurance, and any otheramountsreportedtoyouonFormW-2.Line 15: Do not include business dividend and interestincome reported as a distributive share on Form Schedule K-1.Seeline16instructions.Line 16: Addtheamountsfrom:• U.S.Schedule C(ProfitorLossfromBusiness).• PartII(OrdinaryGainsandLosses)oftheU.S.Form4797.• Part II (Income or Loss from Partnerships and

SCorporations)andPartIII(IncomeorLossfromEstatesandTrusts)oftheU.S.Schedule E.

• U.S.Schedule F(ProfitorLossfromFarming).• Includeincomeitemsreportedasadistributiveshare.If the total is negative enter “0.” Include amounts from sources outside Michigan. Include the above federal schedules with your claim.Line 17: Addtheamountsfrom:• Part I (Income or Loss from Rental Real Estate and

Royalties)oftheU.S.Schedule E.• Part IV (Income or Loss from Real Estate Mortgage

Investment Conduits (REMIC)) of the U.S. Schedule E (rents,royalties).

• PartV(Netfarmrentalincomeor(loss)fromForm4835)oftheU.S.Schedule E.

If the total is negative enter “0.” Include amounts from sources outside Michigan. Include the above federal schedules with your claim.Line 18: Enterallannuity,retirement,pensionandindividual retirementaccount(IRA)benefits.Thisshouldbethetaxableamount shown on your U.S. Form 1099-R. If no taxableamountisshownonyourU.S.Form1099-R,usetheamountrequired to be included in AGI. Enter “0” if all of yourdistribution is from your contributions made with incomepreviouslyincludedinAGI.IncludereimbursementpaymentssuchasanincreaseinapensiontopayforMedicarecharges.Also include the totalamountofany lumpsumdistribution

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including amounts reported on your U.S. Form 4972. Donot include recoveriesof after-taxcontributionsor amountsrolled over into another plan (amounts rolled over into aRoth IRAmust be included to the extent included inAGI). You must include any part of a distribution from a RothIRA that exceeds your total contributions to the RothIRA regardless ofwhether this amount is included inAGI.Assume all contributions to the Roth IRA are withdrawnfirst.NOTE:LossesfromRothIRAscannotbededucted. Line 19: Enternetcapitalgainsandlosses.Thisisthetotalofshort-termandlong-termgains, lessshort-termandlong-termlossesfromyourU.S.Schedule D(lossescannotexceed$3,000ifsingleormarriedfilingjointly,or$1,500ifmarriedfilingseparately). Includegains realizedon thesaleofyourresidencewhetherornotthesegainsareexemptfromfederalincometax.Line 20: Enteralimonyreceivedandother taxable income.Describe other taxable income. This includes: awards,prizes, lottery, bingo, and other gambling winnings over$300;farmlandpreservationtaxcreditsifnotincludedinnetfarmincomeonline16;andforgivenessofdebttotheextentincludedinfederalAGI(e.g.,mortgageforeclosure).Line 21: Enter all Social Security, Supplemental SecurityIncome (SSI), and/or Railroad Retirement benefits. Includedeathbenefitsandamounts received for minor children or other dependent adultswholivewithyou.Reporttheamountactuallyreceivedfortheyear.MedicarepremiumsreportedonyourSocialSecurityorRailroadRetirementstatementshouldbededucted.Line 22: Enterchildsupportandallpaymentsreceivedasafosterparent.NOTE:Ifyoureceiveda2017 Custodial Party End of Year Statement (FEN-851) showing child supportpayments paid to the Friend of the Court, enter the childsupportportionhereandincludeacopyofthestatement.Seeline27instructions.Line 23: Enter all unemployment compensation receivedduring2017.Line 24: Enter the value over $300 in gifts of cash ormerchandisereceived,orexpensespaidonyourbehalf(rent,taxes,utilities,food,medicalcare,etc.)byparents,relatives,or friends. This includes the amount of financial supportyoureceived ifyouareclaimedasadependentonsomeoneelse’s return. Do not include government payments madedirectlytothirdpartiessuchasaneducationalinstitutionorsubsidizedhousingproject.Line 25: Enterothernontaxableincome.Thisincludes:• Nongovernmental scholarship, stipend or grant payments

paiddirectlytoaneducationalinstitution• Compensation for damages to character or for personal

injuryorsickness• Aninheritance(exceptaninheritancefromyourspouse)• Proceedsofalifeinsurancepolicypaidonthedeathofthe

insured(exceptbenefitsfromapolicyonyourspouse)• Deathbenefitspaidbyoronbehalfofanemployer• Minister’shousingallowance• ForgivenessofdebttotheextentnotincludedinfederalAGI

(e.g.,mortgageforeclosure)

• Reimbursement fromdependentcareand/ormedicalcarespendingaccounts

• Ifyouaremarriedfilingseparately,includeyourspouse’sincome unless you maintained separate homesteadsduringtheyear.CompleteandincludeForm5049.

Line 26: Enter workers’ compensation, service-connecteddisability compensation and pension benefits from theVeterans Administration. Veterans receiving retirementbenefitsshouldenterthebenefitsonline18.Line 27: Enter the total paymentsmade to your householdby MDHHS and all other public assistance paymentssuch as state adoption subsidies. Your 2017 Client Annual Statement (DHS-1241)mailed byMDHHS in January 2018will show your totalMDHHS payments. Your statement(s)may include the following: Family Independence Program(FIP)assistance,StateDisabilityAssistance(SDA),RefugeeAssistance,RepatriateAssistance, and vendor payments forshelter,heat,andutilities.NOTE: If you received a 2017 FEN-851 (include a copy),subtract the amount of child support payments entered online 22 from the total MDHHS payments and enter thedifferencehere.Line 30: EntertotaladjustmentsfromyourU.S.Form1040 orU.S.Form1040A.Describeadjustmentstoincome.Theseadjustments reduce total household resources and includesomeofthefollowing:• PaymentstoIRAs,SEP,SIMPLE,orqualifiedplans• Studentloaninterestdeduction• Moving expenses into or within Michigan can be

includedin“OtherAdjustments”toreducetotalhouseholdresources. Moving expenses when moving out ofMichigan cannot be included in “Other Adjustments” toreducetotalhouseholdresources

• Deductionforself-employmenttax• Self-employedhealthinsurancededuction• Penaltyonearlywithdrawalofsavings• Alimonypaid• Jurydutypayyougavetoyouremployer• ArcherMedicalSavingsAccount(MSA)deduction• HealthSavingsAccount(HSA)deduction• Anyotheradjustments togross income includedonyour

2017U.S.Form1040.Line 31: Enter health insurance premiums, HealthMaintenance Organization (HMO) premiums, or otherinsurance premiums you paid for yourself and your family.Includethefollowingpremiums:• Medicalinsurance• Dentalinsurance• Visioninsurance• Prescriptiondrugplan• Automobileinsurance(medicalcareportiononly).Donotincludeanyinsurancepremiumsdeductedonlines21or 30, amounts paid for income protection insurance (long-term disability), long-term care insurance, or amounts paidbyanemployerwithpre-taxpayrollcontributions.You must reduce an insurance premium by the federalpremiumtaxcreditreceivedunderthePatientProtectionand

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AffordableCareAct.Usethe2017U.S.PremiumTaxCreditForm 8962 to calculate the net insurance premium. Theannualtotalinsurancepremium(line11AofU.S.Form8962 orthesumoflines12Athrough23AofU.S.Form8962)lessthetotalpremiumtaxcredit(line24ofU.S.Form8962)maybeclaimed.

Property Tax CreditLine 34: Multiply line 33 by 3.5 percent (0.035) or thepercentage from MI-1040CR Table 2. This is the amount that will not be refunded. The personal representativeclaimingacreditforadeceasedtaxpayerwithtotalhouseholdresources of $6,000 or less must annualize the decedent’sincome and use the annualized figure to determine thenonrefundable percentage from Table 2. Then use theactual total household resources to compute the credit. See“AnnualizingTotalHouseholdResources”onpage28.

PART 1: Allowable Computation Based on Claimant StatusCompleteonlySectionA,B,orC,whicheverappliestoyou.Senior claimantswho checkedonly 5a completeSectionA.Claimants who checked only 5b or checked both boxes 5aand 5b complete Section B. All other claimants completeSectionC.

Line 37:Enter thepercentagefromMI-1040CRTableAthatapplies to your total household resources from line 33. A senior,age65orolder,filingapart-yearcreditmustcalculateannualized total household resources to determine thereductionpercentageusingMI-1040CRTableA.Line 42: If you checked only 5a enter the amount fromline 38. If you checked only 5b or checked both 5a and 5benter the amount from line 39.All others enter the amountfromline41.IfyoureceivedFIPassistanceorotherMDHHSbenefits in 2017, prorate your credit to reflect the ratio ofincomefromothersourcestototalhouseholdresources. Toprorate your credit use the information from your form tocompleteMI-1040CRWorksheet3.

Line 43: The computed credit is reduced by 10 percent forevery $1,000 (or part of $1,000) that your total householdresources exceed $41,000. Enter the percentage fromMI-1040CR Table B that applies to your total householdresourcesfromline33.NOTE: If you are filing a part-year credit and theannualized income is more than $41,000, use annualizedtotal household resources to determine the percentageallowableinMI-1040CRTableB.

MI-1040CR TABLE B: HOMESTEAD PROPERTY TAX CREDIT PHASE OUT

Total Household Resources Percentage

$41,000 or less ...............................100% (1.00)$41,001 - $42,000 ............................90% (0.90)$42,001 - $43,000 ............................80% (0.80)$43,001 - $44,000 ............................70% (0.70)$44,001 - $45,000 ............................60% (0.60)$45,001 - $46,000 ............................50% (0.50)$46,001 - $47,000 ............................40% (0.40)$47,001 - $48,000 ........................... 30% (0.30)$48,001 - $49,000 ........................... 20% (0.20)$49,001 - $50,000 ............................10% (0.10)$50,001 - above .................................0% (0.00)

MI-1040CR WORKSHEET 3: FIP/MDHHS BENEFITS

A. Enter amount from line 27 (FIP and other MDHHS benefits) .....................

B. Enter amount from line 33 (Total Household Resources) ......................

C. Subtract line A from line B (if amount is a negative value, enter “0”)

D. Divide line C by line B and enter percentage here ................................

E. If you checked only box 5a, enter the amount from line 38. If you checked box 5b, enter the amount from line 39. All others, enter the amount from line 41 here (maximum $1,200) ..............................................

F. Multiply line E by line D. If you are age 65 or older and you rent your home, enter amount here and on line A of Worksheet 4. Otherwise, enter here and on your MI-1040CR, line 42

MI-1040CR TABLE A: SENIOR CREDIT REDUCTION

Total Household Resources Percentage

$21,000 or less ........................... 100% (1.00)$21,001 - $22,000 ........................ 96% (0.96)$22,001 - $23,000 ........................ 92% (0.92)$23,001 - $24,000 ........................ 88% (0.88)$24,001 - $25,000 ........................ 84% (0.84)$25,001 - $26,000 ........................ 80% (0.80)$26,001 - $27,000 ....................... 76% (0.76)$27,001 - $28,000 ....................... 72% (0.72)$28,001 - $29,000 ........................ 68% (0.68)$29,001 - $30,000 ........................ 64% (0.64)$30,001 - $50,000 ........................ 60% (0.60)

MI-1040CR TABLE 2:PERCENT OF TAXES NOT REFUNDABLE

ALL GENERAL CLAIMANTS

Income % of Income$0-$50,000..................................... 3.5%

OTHER CLAIMANTS *Income % of Income$3,000orless................................... 0%$3,001-$4,000................................ 1%$4,001-$5,000................................ 2%$5,001-$6,000................................ 3%Morethan$6,000............................. 3.5%

*Otherclaimantsareseniorcitizensorpeoplewhoareparaplegic,hemiplegic,quadriplegic,deaf,ortotallyandpermanentlydisabledorunremarriedspouseofanindividual65orolder.

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Alternate Property Tax Credit for Renters Age 65 or OlderIfyouareaseniorrenterage65orolderyoumayqualifyforthe Alternate Property Tax Credit. Complete MI-1040CRWorksheet4todetermineifyouqualify.MI-1040CR Worksheet 4, Line B: Enter rent paid fromline 53 or, if you live in service fee housing, enter amountfrom line 55. If you moved from one rental homestead toanotherduringthelasttwoyears(alsosee“IfYouMovedin2017”onpage27),entersmallerof:• Thefinalmonth’srentonyourpreviousrentedhomestead

multipliedby12,or• Theactualrentpaidfromline53orline55.

PART 4: RentersSee“RentEligibleforCredit”onpage27.Line 52: If you rented a Michigan homestead subject tolocal property taxes, enter the street number and name,city, landlord’s name and address, number of monthsrented, rent paid per month, and total rent paid. Do thisfor each Michigan homestead rented during 2017 and foreach time rental amountschanged. Ifyouneedmore space,include an additional sheet. Do not include more than 12months’ rent. If youmarried during 2017, see page 28. Donot includeamountspaiddirectly to the landowneronyourbehalf by a government agency, unless payment is madewithmoneywithheld fromyour benefit. If youpay lot renton your mobile home, subtract the $3 per month propertytax from the monthly rent amount. Claim the remainingbalance of rent on line 53 and on line 11. If you lived in aspecial housing facility (other than cooperative housing)and received an itemized statement fromyour landlord thatseparatesrentfromotherservices(suchasfood),reportrentonthisline.

MI-1040CR WORKSHEET 4: ALTERNATE PROPERTY TAX CREDIT FOR RENTERS AGE 65 AND OLDER

A. Enter the amount from line 42 or, if line 33 exceeds $41,000, line 42 multiplied by line 43. If you received FIP/MDHHS, enter the amount from Worksheet 3, line F ...............................

B. Enter rent paid from line 53 or line 55 ...................................................

C. Multiply amount on line 33 by 40% (0.40) and enter here ............................

D. Subtract line C from line B. If line C is more than line B, enter “0” ................

E. Enter the larger of line A or line D here and carry amount to your MI-1040CR, line 44 (maximum $1,200) ....................

PART 5: Alternate Housing FacilitiesIf you are completing lines 54 through 57, you must alsocompleteline58.Line 54: If your housing costs are subsidized, check box54aandenterthetotalamountofrentyoupaidonline55andon line11.Donot includeamountspaidonyourbehalfby a government agency. Complete lines 12 through 44 tocalculateyourcredit.IfyoulivedinServiceFeeHousing(evenifitwassubsidizedhousing), check box 54b and enter the amount of rent you paidonline55.Donotincludeamountspaidonyourbehalfby a government agency. Enter 10 percent of the rent on lines 56 and 10 (as property taxes), and complete lines 13through44tocalculateyourcredit.Line 57: Ifyoulivedinoneof thespecialhousingfacilitiesidentifiedandrentisnotitemized,checktheappropriateboxand calculate your prorated share of property taxes. If youlived in a special housing facility (other than cooperativehousing) and received an itemized statement from yourlandlord that separates rent from other services, do not completeline57sincerentisreportedonline52.See“RentEligible for Credit” and “Residents of Adult Care Homesincluding Assisted Living Facilities” on pages 27 and 29,respectively.

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WORKSHEET 5 - EXEMPTION ALLOWANCE FOR SCHEDULE NR When One Spouse Is a Full-Year Resident and the other a Part-Year or Nonresident

Computing Amount of Exemption for Part-Year or Nonresident Income1. MichiganTaxableIncomeofspousewhoisNOTafull-yearresident......................................................1. ________________________2. TotalTaxableIncomeofspousewhoisNOTafull-yearresident.............................................................2. ________________________3. Divideline1byline2andenterpercentagehere......................................................................................3. ________________________4. Michiganpersonalexemptionallowance...................................................................................................4. ________________________5.Numberofspouse’sspecialexemptionsfromMI-1040,line9b ______x$2,600......................................................................................................................................5. ________________________6. Spouse’squalifieddisabledveteranexemptionfromMI-1040,line9c_______x$400........................6. ________________________7. Addlines4,5,and6...................................................................................................................................7. ________________________8.Multiplyline7bythepercentageonline3................................................................................................8. ________________________Computing Amount of Prorated Exemption Amount for Dependents9.AmountfromScheduleNR,line14B.......................................................................................................9. ________________________10.AmountfromScheduleNR,line14A.....................................................................................................10. ________________________11.Divideline9byline10andenterpercentagehere.................................................................................. 11. ________________________12.Multiplyline11byexemptionallowanceof$4,000...............................................................................12. ________________________13.Multiplyline12bythenumberofdependentsclaimed...........................................................................13. ________________________14.Multiplyline11bythenumberofdependentsclaimedwhoarequalifieddisabledveterans(fromMI-1040,line9c)_______x$400........................................................................................14. ________________________15.Multiplyline11bythenumberofdependentsclaimedwithspecialexemptions fromMI-1040,line9b_______x$2,600...........................................................................................15. ________________________Computing Amount of Exemption for Michigan Resident Spouse16.Residentspouse’spersonalexemptionallowance...................................................................................16. ________________________17.Numberofresidentspouse’sspecialexemptionsfromMI-1040,line9b______x$2,600................17. ________________________18.Residentspouse’squalifieddisabledveteranexemptionfromMI-1040,line9c_______x$400.........18. ________________________19.Addlines16,17,and18..........................................................................................................................19. ________________________20.Addlines8,13,14,15,and19andcarrytoScheduleNR,line19.........................................................20. ________________________

%$4,000

%

$4,000

John A Brown

Jane C Brown DECD

C. Single Filer with Claimant

D. Joint Filers with Personal Representative1. Filer’s First Name M.I. Last Name

If a Joint Return, Spouse’s First Name M.I. Last Name

Home Address (Number, Street, or P.O. Box)

A. Joint Filers with Surviving Spouse1. Filer’s First Name M.I. Last Name

If a Joint Return, Spouse’s First Name M.I. Last Name John A Brown ESTOF

Jane C Brown ESTOF

SamW.Jones REP123MainSt.

E. Joint Filers with Claimant

John A Brown DECD

Jane C Brown DECD

SamW.Jones CLAIMANT123MainSt.

1. Filer’s First Name M.I. Last Name

If a Joint Return, Spouse’s First Name M.I. Last Name

Home Address (Number, Street, or P.O. Box)

B. Single Filer with Personal Representative

John A Brown ESTOF

SamW.Jones REP123MainSt.

1. Filer’s First Name M.I. Last Name

If a Joint Return, Spouse’s First Name M.I. Last Name

Home Address (Number, Street, or P.O. Box)

John A Brown DECD

SamW.Jones CLAIMANT123MainSt.

1. Filer’s First Name M.I. Last Name

If a Joint Return, Spouse’s First Name M.I. Last Name

Home Address (Number, Street, or P.O. Box)

Deceased Taxpayer Chart of Examples (see instructions, pages 6 and 27.)

TABLE 3 - FEDERAL SCHEDULES IfyoufileanyofthefollowingschedulesorformswithyourfederalreturnyoumustincludeacopywithyourMichiganincometaxreturn:ScheduleA......................................................... ItemizedDeductionsScheduleB......................................................... InterestandDividendIncome(ifover$5,000)ScheduleCorC-EZ........................................... ProfitorLossFromBusinessSchedulesDand4797........................................ CapitalandOrdinaryGainsandLossesScheduleE.......................................................... SupplementalIncomeandLossScheduleF.......................................................... FarmIncomeandExpensesScheduleRor1040ASchedule3....................... CreditfortheElderlyorDisabledForm1040NR.....................................................NonresidentAlienIncomeTaxReturnForm2555.......................................................... ForeignEarnedIncomeForm3903or3903-F.........................................MovingExpensesForm4868..........................................................ApplicationforAutomaticExtensionofTimetoFileU.S.IndividualIncomeTaxReturnsForm6198.......................................................... ComputationofDeductibleLossFromActivityDescribedinIRCSection465(c)Form8829.......................................................... ExpensesforBusinessUseofYourHomeIfyouhaveincomeorlossesattributabletootherstates,youmustincludeallrelevantfederalschedulesandsupportingstatementslistedaboveIncludeSchedule K-1swhichsupportyourfederalSchedules B, D, Eand4797.Thetype,sourceandlocationoftheincomeorlossmustbeidentified.ForassistanceconveyingthisinformationtoTreasury,refertothe“Business,Rental&RoyaltyActivityWorksheet”anditsinstructionsavailableonTreasury’sWebsite.Ifyoudonotincludethefederalschedulesandsupportingstatements,processingofyourreturnmaybedelayedoryourcredit/subtractionmaybedenied.

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Michiganpublic school districts are listed alphabeticallywith codenumbers to the left of thenames. Whenmore thanonedistrict has the samename, the countyor city name in parentheses helps you choose the right district. Residents, choose thecode for thedistrictwhereyou livedonDecember31,2017. Callyour localassessoror treasurer ifyoudonot knowyour school district name. Nonresidents, enter “10000” in the school district codebox.

School District Code List (See MI-1040 or MI-1040CR, line 4.)

73180 Bridgeport-Spaulding11340 Bridgman47010 Brighton17140 Brimley46050 BrittonDeerfield12020 Bronson76060 BrownCity11310 Buchanan28035 Buckley56020 BullockCreek75020 BurrOak02020 BurtTwp.78020 Byron41040 ByronCenter

83010 Cadillac41050 Caledonia31030 Calumet30010 Camden-Frontier74040 Capac25080 Carman-Ainsworth55010 Carney-Nadeau79020 Caro73030 Carrollton59020 CarsonCity-Crystal76070 Carsonville-Pt.Sanilac32030 Caseville79030 CassCity14010 Cassopolis41070 CedarSprings50010 CenterLine05035 CentralLake59125 CentralMontcalm75030 Centreville15050 Charlevoix23030 Charlotte31050 ChassellTwp.16015 Cheboygan81040 Chelsea73110 ChesaningUnion54025 ChippewaHills50080 ChippewaValley32040 Church18010 Clare63090 Clarenceville63190 Clarkston63270 Clawson39020 Climax-Scotts46060 Clinton50070 Clintondale25150 Clio12010 Coldwater56030 Coleman32260 ColfaxTwp.11330 Coloma75040 Colon38040 Columbia39030 Comstock41080 ComstockPark38080 Concord75050 Constantine70120 Coopersville78100 Corunna80040 Covert20015 CrawfordAuSable82230 Crestwood76080 Croswell-Lexington33040 Dansville25140 Davison82030 Dearborn82040 DearbornHeights

31020 AdamsTwp.46020 Addison46010 Adrian58020 Airport79010 Akron-Fairgrove24030 Alanson05010 Alba13010 Albion01010 Alcona74030 Algonac03030 Allegan82020 AllenPark70040 Allendale29010 Alma44020 Almont04010 Alpena50040 AnchorBay81010 AnnArbor06010 ArenacEastern50050 Armada07010 ArvonTwp.29020 Ashley13050 Athens25130 Atherton60010 Atlanta06020 AuGres-Sims02010 AuTrain-Onota63070 Avondale

32010 BadAxe43040 Baldwin80020 Bangor (VanBuren)80240 BangorTwp.09030 BangorTwp. (Bay)07020 Baraga21090 BarkRiver-Harris19100 Bath13020 BattleCreek09010 BayCity37040 BealCity51020 BearLake15010 Beaver Island26010 Beaverton58030 Bedford25240 Beecher34080 Belding05040 Bellaire23010 Bellevue25060 Bendle25230 Bentley11010 BentonHarbor10015 BenzieCountyCentral63050 Berkley34140 BerlinTwp.11240 BerrienSprings27010 Bessemer21065 BigBayDeNoc62470 Big Jackson54010 BigRapids73170 BirchRun63010 Birmingham46040 Blissfield63080 BloomfieldHills80090 Bloomingdale49020 BoisBlancPines15020 BoyneCity15030 BoyneFalls63180 Brandon11210 Brandywine29040 Breckenridge22030 BreitungTwp.

80050 Decatur76090 Deckerville46070 Deerfield08010 Delton-Kellogg17050 DeTour82010 Detroit19010 DeWitt81050 Dexter31100 DollarBay-TamarackCity14020 DowagiacUnion44050 Dryden58050 Dundee78030 Durand

74050 EastChina50020 EastDetroit41090 EastGrandRapids38090 East Jackson15060 East Jordan33010 EastLansing34340 EastonTwp.23050 EatonRapids11250 EauClaire82250 Ecorse14030 Edwardsburg05060 ElkRapids32050 Elkton-Pigeon-BayPortLaker05065 Ellsworth31070 ElmRiverTwp.49055 Engadine21010 Escanaba09050 Essexville-Hampton67020 Evart66045 Ewen-TroutCreek40060 Excelsior

68030 Fairview63200 Farmington18020 Farwell03050 Fennville25100 Fenton63020 Ferndale50090 Fitzgerald82180 FlatRock25010 Flint25120 Flushing40020 ForestArea41110 ForestHills36015 ForestPark19070 Fowler47030 Fowlerville73190 Frankenmuth10025 Frankfort-Elberta50100 Fraser73200 Freeland53030 FreeSoil62040 Fremont61080 Fruitport29050 Fulton

39050 Galesburg-Augusta11160 GalienTwp.82050 GardenCity69020 Gaylord25070 Genesee82290 Gibraltar21025 Gladstone26040 Gladwin45010 GlenLake03440 Glenn80110 Gobles41120 Godfrey-Lee

41020 GodwinHeights25050 Goodrich25030 GrandBlanc70010 GrandHaven23060 GrandLedge41010 GrandRapids41130 Grandville62050 Grant42030 GrantTwp.38050 GrassLake59070 Greenville82300 Grosse IleTwp.82055 GrossePointe39065 GullLake52040 Gwinn

11670 HagarTwp.35020 Hale03100 Hamilton82060 Hamtramck31010 Hancock38100 Hanover-Horton32060 HarborBeach24020 HarborSprings13070 HarperCreek82320 HarperWoods18060 Harrison64040 Hart80120 Hartford47060 Hartland33060 Haslett08030 Hastings63130 HazelPark73210 Hemlock62060 Hesperia82070 HighlandPark60020 Hillman30020 Hillsdale70020 Holland63210 Holly33070 Holt61120 Holton13080 Homer03070 Hopkins72020 HoughtonLake31110 Houghton-PortageTwp.47070 Howell46080 Hudson70190 Hudsonville82340 Huron63220 HuronValley

58070 Ida44060 ImlayCity82080 Inkster16050 InlandLakes34010 Ionia34360 IoniaTwp.22010 IronMountain27020 Ironwood52180 Ishpeming29060 Ithaca

38170 Jackson58080 Jefferson (Monroe)70175 Jenison69030 Johannesburg-Lewiston30030 Jonesville

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39010 Kalamazoo51045 KalevaNormanDickson40040 Kalkaska25110 Kearsley41140 Kelloggsville41145 KenowaHills41150 KentCity41160 Kentwood28090 Kingsley79080 Kingston

07040 L’Anse50140 L’AnseCreuse78040 Laingsburg57020 LakeCity25200 LakeFenton31130 LakeLinden-Hubbell63230 LakeOrion50120 LakeShore (Macomb)11030 Lakeshore (Berrien)13090 Lakeview (Calhoun)50130 Lakeview (Macomb)59090 Lakeview (Montcalm)25280 LakeVille34090 Lakewood63280 Lamphere33020 Lansing44010 Lapeer80130 Lawrence80140 Lawton45020 Leland49040 LesCheneaux33100 Leslie81070 Lincoln82090 LincolnPark25250 Linden30040 Litchfield82095 Livonia41170 Lowell53040 Ludington

49110 Mackinac Island16070 MackinawCity46090 Madison (Lenawee)63140 Madison (Oakland)05070 Mancelona81080 Manchester51070 Manistee77010 Manistique83060 Manton23065 MapleValley13095 MarLee14050 Marcellus67050 Marion76140 Marlette52170 Marquette13110 Marshall03060 Martin74100 Marysville33130 Mason (Ingham)58090 Mason (Monroe)53010 MasonCountyCentral53020 MasonCountyEastern80150 Mattawan79090 Mayville57030 McBain82045 Melvindale-NorthAllenPark74120 Memphis75060 Mendon55100 Menominee56050 Meridian73230 Merrill83070 Mesick38120 MichiganCenter21135 MidPeninsula56010 Midland81100 Milan79100 Millington68010 Mio-AuSable

61060 MonaShores58010 Monroe59045 Montabella61180 Montague25260 Montrose49070 MoranTwp.46100 Morenci54040 MorleyStanwood78060 Morrice50160 Mt.Clemens25040 Mt.Morris37010 Mt.Pleasant02070 Munising61010 Muskegon61020 MuskegonHeights

38130 Napoleon52090 Negaunee11200 NewBuffalo50170 NewHaven78070 NewLothrop62070 Newaygo52015 N.I.C.E. (Ishpeming)11300 Niles30050 NorthAdams-Jerome44090 NorthBranch55115 NorthCentral22045 NorthDickinson32080 NorthHuron61230 NorthMuskegon45040 Northport41025 Northview82390 Northville38140 Northwest22025 Norway-Vulcan75100 Nottawa63100 Novi

63250 OakPark61065 Oakridge33170 Okemos23080 Olivet71050 Onaway23490 OneidaTwp.51060 Onekama46110 Onsted66050 Ontonagon61190 OrchardView35010 Oscoda03020 Otsego19120 Ovid-Elsie32090 Owendale-Gagetown78110 Owosso63110 Oxford

34040 Palo39130 Parchment80160 PawPaw76180 Peck24040 Pellston13120 Pennfield64070 Pentwater78080 Perry24070 Petoskey19125 Pewamo-Westphalia17090 Pickford47080 Pinckney09090 Pinconning67055 PineRiver30060 Pittsford03010 Plainwell82100 Plymouth-Canton63030 Pontiac74010 PortHuron39140 Portage34110 Portland71060 Posen23090 Potterville52100 PowellTwp.

12040 Quincy

21060 RapidRiver61210 Ravenna30070 Reading82110 RedfordUnion67060 ReedCity79110 Reese61220 Reeths-Puffer52110 Republic-Michigamme50180 Richmond82120 RiverRouge11033 RiverValley82400 Riverview63260 Rochester41210 Rockford71080 RogersCity50190 Romeo82130 Romulus72010 Roscommon50030 Roseville63040 RoyalOak17110 Rudyard

73010 SaginawCity73040 SaginawTwp.81120 Saline46130 SandCreek76210 Sandusky34120 Saranac03080 Saugatuck17010 SaultSte.Marie39160 Schoolcraft64080 Shelby37060 Shepherd32610 SigelTwp. 3 (Adams)32620 SigelTwp. 4 (Eccles)32630 SigelTwp. 6 (Kipper)11830 SodusTwp.80010 SouthHaven50200 SouthLake63240 SouthLyon82140 SouthRedford63060 Southfield82405 Southgate41240 Sparta70300 SpringLake38150 Springport73240 St.Charles49010 St. Ignace19140 St. Johns11020 St. Joseph29100 St.Louis06050 Standish-Sterling31140 StantonTwp.55120 Stephenson33200 Stockbridge75010 Sturgis58100 Summerfield02080 SuperiorCentral45050 SuttonsBay73255 SwanValley25180 SwartzCreek

48040 Tahquamenon35030 Tawas82150 Taylor46140 Tecumseh13130 Tekonsha08050 ThornappleKellogg75080 ThreeRivers28010 TraverseCity82155 Trenton59080 TriCounty63150 Troy

32170 Ubly13135 UnionCity79145 Unionville-Sebewaing50210 Utica

82430 VanBuren50220 VanDyke

69040 Vanderbilt38020 VandercookLake79150 Vassar32650 VeronaTwp.59150 Vestaburg39170 Vicksburg

27070 Wakefield-Marenisco30080 Waldron64090 Walkerville63290 WalledLake50230 Warren50240 WarrenWoods63300 Waterford27080 WatersmeetTwp.11320 Watervliet33215 Waverly03040 WaylandUnion82160 Wayne-Westland33220 Webberville52160 WellsTwp.63160 WestBloomfield65045 WestBranch-RoseCity36025 West IronCounty70070 WestOttawa38010 Western82240 Westwood25210 WestwoodHeights62090 WhiteCloud75070 WhitePigeon17160 WhitefishTwp.58110 Whiteford61240 Whitehall81140 WhitmoreLake35040 Whittemore-Prescott33230 Williamston81150 WillowRun16100 Wolverine82365 Woodhaven-Brownstown82170 Wyandotte41026 Wyoming

74130 Yale81020 Ypsilanti

70350 Zeeland

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Summary of Income Tax Credits, Additions, and SubtractionsBelowisasummaryofincometaxcredits,additions,andsub-tractionsavailabletotaxpayers.Detailedinformationforeachisprovidedonthepagenumberindicatedbelow.CreditsThe following refundable credits may be claimed on your MI-1040. The line reference follows the credit listed below.MI-1040-NonrefundableCredits PageNo.TaxespaidtogovernmentunitsoutsideMichigan(18)...............9HistoricPreservationTaxCredit(19)........................................10SmallBusinessInvestmentTaxCredit(19)...............................10MI-1040-RefundableCredits PageNo.HomesteadPropertyTaxCredit(25).........................................25FarmlandPreservationTaxCredit(26).....................................10EarnedIncomeTaxCredit(27)..................................................10HistoricPreservationTaxCredit(28)........................................10The following credit is claimed on your MI-1040CR-7 Home Heating Credit Claim form.HomeHeatingCredit....... SeeMI-1040CR-7InstructionBooklet

AdditionsThe following additions are claimed on your Schedule 1; total additions are carried forward to your MI-1040, line 11. The Schedule 1 line reference follows the addition listed below. PageNo.Gross interest, dividends, and income fromobligationsor securities of states and their political subdivisionsotherthanMichigan (1)..................................................................... 12Deduction takenonyour federal return for self-employment taxor other taxes onormeasuredby income (2)................. 12Capital gains from theMichigan columnof theMI-1040D orMI-4797 (3)......................................................................... 12Certain losses fromabusiness or property located in another state (4)................................................................... 12Net loss from the federal columnof yourMichigan MI-1040DorMI-4797 (5)....................................................... 12Gross expenses fromMichiganoil andgas activity andnonferrousmetallicminerals extraction (6)............................ 12Net operating loss deductionused to reduceAGI (7)........... 12Moneywithdrawn in the taxyear fromaMichiganEducationSavingsProgram (MESP) account if thewithdrawalwasnot aqualifiedwithdrawal as provided in theMESPAct (8)........ 12Refund received fromaMichiganEducationTrust (MET)contract (8)............................................................................... 12

Subtractions The following subtractions are claimed on your Schedule 1; total subtractions are carried forward to your MI-1040, line 13. The Schedule 1 line reference follows the subtraction listed below. PageNo.IncomefromU.S.governmentobligations (SeriesEEBonds,Treasurynotes,etc.)(10)............................12Military,MichiganNationalGuard and taxable railroad retirement benefits (11)...............................................12Gains from federal columnofMichigan MI-1040DandMI-4797 (12)...................................................12Incomeattributable to another state (13).................................13Compensation received for activeduty inU.S.ArmedForces and taxableSocialSecurity (14).............13Renaissance zonededuction (15).............................................13Michigan state and city income tax refunds and homesteadproperty tax credit refunds (16).............................13Contributionsmade to accounts established through MESP (17).................................................................................13Contract price for aMETcontract (18)..................................13Charitable contributions toMETprograms (18).....................13Gross income fromMichiganoil andgas activityandnonferrousmetallicminerals extraction (19)....................13ExemptedResident tribalmember income (20)......................13MichiganNOL (21)..................................................................14Amount used to determine the credit for elderly or totally andpermanentlydisabled fromU.S.Form1040 Schedule R (22).........................................................................14Holocaust victimpayments (22)...............................................14MichiganStandardDeduction (24)..........................................15Qualifying retirement andpensionbenefits (25).SeePension Schedule (Form4884)...............................................................15Dividends, interest, and capital gains for senior citizens (26)..15

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IndexIncome Tax PageAdditionstoincome..........................................................12Amending...........................................................................7Annualizingtotalhouseholdresources............................28Appeals...............................................................................3Blindexemption..................................................................9Canadianprovincialtaxcredit............................................9Deafexemption...................................................................9Deceased................................................................. 6,27,59DirectDeposit................................................................... 11Disabled,defined................................................................9Duedate..............................................................................4Earnedincometaxcredit.................................................. 10Electronicfiling..............................................................1,3Estimatedpayments............................................................5Extensions...........................................................................5Federalschedules..............................................................59Filingrequirements.............................................................3Homesteadproperty.................................................... 10,25Interest................................................................................4Line-by-lineinstructions....................................................9MESP.......................................................................... 12,13MET............................................................................ 12,13Militarypay.................................................................. 3,13Netoperatinglosses................................................ 7,14,25Nonresidents,incomeallocation....................... 6,12,49,59Out-of-stateincometaxcredit............................................9Part-yearresidents,incomeallocation.............. 6,12,49,59Penalty.......................................................................... 4,11Pensionsandretirement..............................12,15-18,51,53QualifiedDisabledVeteransexemption.............................9Reciprocalstates.................................................................6Renaissancezonededuction.............................................13Repaymentsofincomereportedinaprioryear.................7Residency........................................................................6,9Roundingnumbers..............................................................4SmallBusinessInvestmentTax(VentureInvestment)Credit.............................................10Schooldistrictcodelist.....................................................60Specialexemptions.............................................................9StandardDeduction..........................................................15StateCampaignFund..........................................................9Subtractionsfromincome.................................................12Taxcreditsavailable.........................................................62VoluntaryContributionsSchedule............................. 10,55Homestead Property Tax CreditAlternatecreditforseniorcitizens(renters).....................33Amending.........................................................................25Boughtorsoldahome......................................................27Cooperativehousing.........................................................27Deceasedclaimant...................................................... 27,59Delaypayingpropertytax................................................25Disabled,defined(line5instructions).............................30Divorced,creditcalculation..............................................28Duedate............................................................................25Duplexes............................................................................26Farmers.............................................................................26Homeusedforbusiness......................................................26

Homestead,defined............................................................25Incomeproperty..................................................................26Line-by-lineinstructions....................................................30Marriedfilingseparately....................................................28Marriedin2017...................................................................28Mobilehomes......................................................................27Moving................................................................................27Nursinghomes....................................................................29Part-yearresidents...............................................................27Propertytaxeseligibleforcredit........................................26Qualifyingforapropertytaxcredit...................................25Rent............................................................................... 27,33Schooldistrictcodelist.......................................................60Seniorcitizens,defined(line5instructions)......................30Separated,creditcalculation...............................................28Servicefeehousing.............................................................27Sharedhousing....................................................................29Specialhousing....................................................... 27,29,33Subsidizedhousing....................................................... 27,33Tax-exempthousing............................................................27TotalHouseholdResourcesdefined...................................25TotalHouseholdResourceslimits......................................25Forms, Worksheets and TablesForms4642,Michigan Voluntary Contributions Schedule......55-564884,Michigan Pension Schedule................................. 51-524973,Michigan Pension Continuation Schedule................535049,Michigan Married Filing Separately and Divorced or Separated Claimants Schedule................................ 47-485530,Michigan Amended Return Explanation of Changes.....................................................................57-58MI-1040,Individual Income Tax Return.......................35-38MI-1040CR,Homestead Property Tax Credit Claim... 43-46Schedule1,Additions and Subtractions........................41-42ScheduleNR,Nonresident and Part-Year Resident Schedule..........................................................49-50ScheduleW,Withholding Tax Schedule....................... 39-40WorksheetsAlternatePropertyTaxCreditforRenters65andOlder........................................................................33ExemptionAllowanceforScheduleNR.............................59FIP/MDHHSBenefits.........................................................32TaxableRailroadRetirementBenefitsorQualifiedRetirementandPensionBenefits...................18UseTax.................................................................................8QuestionnaireWhichSectionofForm4884ShouldIComplete...............17TablesFederalSchedules...............................................................59HomesteadPropertyTaxCreditPhaseOut.........................32PercentofTaxesNotRefundable(MI-1040CR)................32SeniorCreditReduction(MI-1040CR)..............................32UseTax.................................................................................8MiscellaneousNewfor2017.........................................................................2TaxAssistance......................................................................2Other TaxesUseTax...........................................................................8,10

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State Revenues and Financing Sources (Millions of Dollars)

FinancingSource Amount %SalesandUseTaxes $9,355.8 29.6%IncomeTax 9,372.0 29.7%OtherRevenue&Taxes 5,770.5 18.3%MotorVehicle&FuelTaxes 2,052.9 6.5%StateEducationTax 1,897.3 6.0%Tobacco&LiquorTaxes 1,155.3 3.7%Business,CorporateandIns.Taxes 1,093.3 3.5%LotteryProfits 879.4 2.8%

Total $31,576.5 100.0%

State Expenditures and Financing Uses (Millions of Dollars)

FinancingUse Amount %Education $14,002.4 44.3%HealthServices 5,030.2 15.9%PublicSafety&Corrections 2,547.6 8.1%Transportation 2,272.7 7.2%GeneralGovernment 2,831.5 9.0%Other 1,101.9 3.5%EconomicDev.&EnvironmentalReg. 1,499.2 4.7%HumanServices 1,077.5 3.4%RevenueSharingtoLocalGovernments 1,213.4 3.8%Total $31,576.5 100.0%

Financial Information for Fiscal Year 2016ThisinformationisintendedtoprovideanoverviewandbroadperspectiveoftheState’sfinancialoperations.ThesefigureswerederivedfromthelatestMichigan Comprehensive Annual Financial ReportforthefiscalyearendedSeptember30,2016.

Treasury OfficesTreasuryofficestaffdonotpreparetaxreturns.

DETROITCadillacPlace,SuiteL-3803060W.GrandBlvd.

DIMONDALE *7285ParsonsDrive(*NOTamailingaddress)

ESCANABAStateOfficeBuilding,1stFloor305LudingtonStreet(openM-W-F8-12only)

FLINTStateOfficeBuilding,5thFloor125E.UnionStreet

Michigan Department of TreasuryLansing, MI 48922 PRSRT STD

U.S. POSTAGE PAID Mich. Dept. of Treasury

GRAND RAPIDSStateOfficeBuilding,2ndFloor350OttawaAvenue,NW-Unit17

STERLING HEIGHTS41300DequindreRoad,Suite200

TRAVERSE CITY701S.ElmwoodAvenue,4thFloor(open8-12only)

Figures represented in millions of dollars may not add to totals because of rounding.