reglab/statecodes huggingface dataset:
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Health Insurance Claims Assessment › Section R. 550.402 - Collection of assessment by carrier or third-party administrator

Current through Vol. 24-12, July 15, 2024
Rule 2.
(1) Neither
				a carrier nor a third-party administrator is required to collect the assessment
				levied under this Act from an individual, employer, or group health plan
				pursuant to Section 3a of the Act; the collection of the assessment from these
				parties by carriers and third-party administrators is permissive.
(2) However, if a carrier or third-party
				administrator determines to collect the assessment from an individual,
				employer, or group health plan, such collection may only be undertaken pursuant
				to the methodology requirements set forth in Section 3a. For purposes of this
				rule, "Act" means the Health Insurance Claims Assessment Act, 2011 PA 142, MCL
				550.1731 et seq.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Health Insurance Claims Assessment › Section R. 550.403 - Recordkeeping; examination of documents

Current through Vol. 24-12, July 15, 2024
Rule 3.
(1) The
				department, through its field auditors and other employees, may examine the
				books, records and papers of any person liable for the assessment.
(2) Every person subject to the assessment
				must keep and preserve suitable and adequate records to enable such person, as
				well as the state, to determine the correct amount of the assessment for which
				the person is liable. Failure to produce and keep records for the purpose of
				examination by the department will be considered willful noncompliance with a
				tax law.
(3) A person subject to
				the assessment must retain all quarterly worksheets as well as all source
				documents used in the preparation of the quarterly worksheets and the annual
				returns filed pursuant to the Act. Source documents may include, but are not
				limited to, documents and records maintained in the ordinary course of business
				containing claims-related information and statements or billings for medical
				services.
(4) A person subject to
				the assessment must also retain all documents and records used to determine
				eligibility for, and the amount of, each of the exclusions from the assessment
				indicated on the quarterly worksheets and annual returns, including, but not
				limited to, documents and records supporting recoveries against claims,
				claims-related expenses, claims paid for nonresidents, claims paid for services
				not performed in Michigan, reimbursements made to individuals under federally
				authorized health spending accounts, and claims paid pursuant to accident,
				disability, long-term care, automobile, workers compensation, or property and
				casualty coverage.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Health Insurance Claims Assessment › Section R. 550.404 - Michigan resident; domicile

Current through Vol. 24-12, July 15, 2024
Rule 4.
(1) For
				purposes of the Act, a Michigan "resident" is an individual who is domiciled in
				the state of Michigan on the date that the service in question is
				performed.
(2) "Domicile" means the
				place where an individual has his or her fixed, permanent and principal home to
				which he or she returns or intends to return. An individuals domicile in one
				place continues until a different domicile is established.
(3) A rebuttable presumption shall exist that
				an individuals home address, as maintained in the ordinary business records of
				a carrier or third-party administrator, indicates the domicile of that
				individual under this definition. Example: An individual who is domiciled in
				Michigan, but attends college in another state, is a Michigan resident for
				purposes of the Act. If that individual obtains health services in Michigan
				while home between semesters, a "paid claim" for the performance of those
				services will be subject to the assessment under the Act.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.1 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1. As used in these rules:
(a) "Act" means the uniform unclaimed
				property act, 1995 PA 29, MCL
				567.221 to
				567.265.
(b) "Administrator" means the state
				treasurer.
(c) "Auditor" means an
				individual, a business association, public corporation, or any other legal or
				commercial entity designated and authorized by the administrator or his or her
				designee to conduct an examination of a person to determine compliance with the
				act. Auditor also includes those employees, agents, subcontractors, and
				representatives of the designated and authorized individual, business
				association, public corporation, or any other legal or commercial
				entity.
(d) "Confidential
				information" means all nonpublic proprietary information, information protected
				by MCL
				205.28(1)(f),
				and any information protected by state or federal law from disclosure including
				the social security number privacy act, 2004 PA 454, MCL
				445.81 to
				445.87, and the
				identity theft protection act, 2004 PA 452, MCL
				445.61 to
				445.79d.
				Confidential information does not include information subject to release by
				law.
(e)"Hardcopy" means any
				documents, records, reports, or other data printed on paper.
(f) "Machine-sensible record" means a
				collection of related information in an electronic format. Machine-sensible
				records do not include hard copy records that are created or recorded on paper
				or stored in or by an imaging system such as microfilm, microfiche, or
				storage-only imaging systems.
(g)
				"Officer," for purposes of qualifying as an eligible holder under MCL
				567.222, means a
				person who is appointed to serve as the president, vice-president, secretary,
				or treasurer of a corporation or a person who serves as a senior executive
				within a corporation or other organization. A senior executive is an individual
				who directs, controls, and coordinates activities that are generally assigned
				to a chief executive officer, chief operating officer, or chief financial
				officer.
(h) "Person" means an
				individual, business association, state or other government, governmental
				subdivision or agency, public corporation, public authority, estate, trust, 2
				or more persons having a joint or common interest, or any other legal or
				commercial entity.
(i)
				"Storage-only imaging system" means a system of computer hardware and software
				that provides for the storage, retention, and retrieval of documents originally
				created on paper. It does not include any system, or part of a system, that
				manipulates or processes any information or data contained on the document in
				any manner other than to reproduce the document in hard copy or as an optical
				image.
(j) All terms not defined in
				these rules have the same meaning as when used in the act.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.2 - Prohibition against use of collection goals or quotas

Current through Vol. 24-12, July 15, 2024
Rule 2. The administrator shall not use collection goals or
				  quotas during the conduct of an examination of records under the
				  act
.
If a person has information that an auditor is using a
				  collection goal or quota while conducting an examination, the person shall
				  inform the administrator. If the administrator finds that a goal or quota was
				  used, such use constitutes a violation of law and a breach of contract that
				  shall result in the replacement of the auditor for the examination and
				  termination of a third party auditor contract. If the examination has been
				  completed, the administrator shall review the fieldwork and examination
				  findings to determine if the use of a goal or quota materially affected the
				  results of the examination.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.3 - Authority of administrator; selection factors for examination

Current through Vol. 24-12, July 15, 2024
Rule 3.
(1) The
				administrator or his or her designee shall have sole authority to select a
				person for examination or to participate in an examination of that person
				commenced by another state. Factors that may be considered in determining
				whether to commence an examination or participate in an examination initiated
				by another state include, but are not limited to, the following:
(a) Value of the persons assets.
(b) Annual sales volume of the
				person.
(c) The reporting history
				of the person.
(d) Mergers,
				takeovers, stock splits, sales, exchanges, liquidations, acquisitions, or other
				changes in equity.
(e) Evidence or
				complaints of failure by the person to send written notice under section 18(5)
				of the act to the apparent owner of property presumed abandoned or other
				complaints filed by property owners or other interested parties.
(f) The person has not been previously
				subject to an examination by the state.
(g) Examinations or other information
				indicate a trend or practice of failing to report the presumed abandonment of
				certain types of property within the persons industry or business
				sector.
(h) The extent of the
				persons operations in this state including employees, vendors, stockholders,
				customers, and account holders.
(i)
				Whether an examination has been initiated by another state or more than 1
				state.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.4 - Auditors compliance with administrators interpretation of law, policy, and procedures

Current through Vol. 24-12, July 15, 2024
Rule 4. When an auditor conducts an examination under a
				  contract with the administrator, the auditor shall conduct the examination in
				  compliance with the administrators interpretation of the act, policy, and
				  procedures. Except for nondisclosure agreement disputes under R 567.11(4), the
				  person subject to examination may request an interpretation of the act, policy,
				  or procedure from the administrator for resolution. The administrator will
				  respond to the auditor and the person subject to examination.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.5 - Notice of commencement of examination

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) When the
				examination will be conducted by an auditor solely on behalf of this state, or
				with at least 1 other state, the administrator shall notify a person that the
				state intends to conduct an unclaimed property examination of that person. All
				of the following apply:
(a) For examinations
				conducted solely on behalf of this state, the examination authorization notice
				shall be sent from the administrator directly to a corporate officer or the
				resident agent of the person subject to examination. Both of the following
				apply:
(i) The notice shall state that the
				state will conduct an examination of the person and shall provide the name of
				the authorized auditor that will conduct the examination.
(ii) The notice shall include the telephone
				number and address of the administrator or his or her designee and shall state
				that the administrator or his or her designee will address any questions that
				the person may have regarding the examination.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.6 - General professional standards for conducting an examination

Current through Vol. 24-12, July 15, 2024
Rule 6. Auditors shall adhere to the following general
				  standards:
(a) Auditors shall maintain
				independence and objectivity in all matters relating to the examination and
				shall not engage in any activity that gives the appearance of a conflict of
				interest.
(b) Auditors shall use
				professional judgment in planning and performing examinations.
(c) Auditors shall adhere to, where
				applicable, generally accepted auditing standards and follow generally accepted
				practices with regard to unclaimed property examinations.
(d) Auditors shall possess adequate
				professional competence needed to address the examination objectives and
				conduct the examination.
(e) Before
				commencing the examination, auditors shall collectively possess the technical
				knowledge, skills, and experience necessary to competently conduct the
				examination.
(f) Auditors shall
				maintain their professional competence through continued training and
				education.
(g) Auditors shall
				possess a system of quality control to provide reasonable assurance that its
				personnel comply with professional standards and applicable legal and
				regulatory requirements.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.7 - General fieldwork standards for conducting examination

Current through Vol. 24-12, July 15, 2024
Rule 7. Auditors shall adhere to the following fieldwork
				  standards:
(a) Auditors shall
				adequately plan the work necessary to address the audit objectives, including a
				proposed timeline for each segment of the examination, the proposed property
				types that will be examined, and the proposed documentation that the person
				subject to examination may need to provide. The timeline shall take into
				consideration whether the person subject to the examination intends to provide
				machine-sensible records and documentation. If access to machine-sensible
				records and documentation is not provided, the auditor may adjust the timeline
				to accommodate the format of the records and documentation.
(b) Auditors shall obtain an understanding of
				the persons internal controls that are significant within the context of the
				examination objectives.
(c)
				Auditors shall obtain a sufficient understanding of the persons organization in
				order to design an examination plan specific to the person being
				audited.
(d) Auditors shall be
				familiar with the states unclaimed property laws, regulations, case law, and
				reporting requirements.
(e) The
				personnel conducting the examination shall be properly supervised. Supervision
				includes all of the following:
(i) Providing
				sufficient guidance and direction to personnel assigned to the examination to
				address the examination objectives and follow applicable
				requirements.
(ii) Being informed
				about significant problems encountered in the examination.
(iii) Reviewing the work performed.
(iv) Providing effective on-the-job
				training.
(v) The nature and extent
				of supervision may vary depending on a number of factors, including the
				experience of the personnel assigned to conduct the examination.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.8 - Auditor contracts

Current through Vol. 24-12, July 15, 2024
Rule 8.
(1) An
				auditor shall provide the person subject to examination with a copy of the
				auditors contract with the state at the examination entrance conference, if the
				examination is conducted by an auditor that is not an employee of the
				state.
(2) If the person subject to
				examination believes that the auditor has not complied with the contract or the
				examination standards, and that noncompliance has or is likely to materially
				affect the results of the examination, the person should notify the
				administrator.
(3) The
				administrator shall monitor auditor contracts and confirm compliance with the
				provisions of the contract and with the audit standards.
(4) The administrator shall investigate any
				complaints regarding an auditor that are received from a person subject to an
				examination.
(5) If the
				administrator determines that the auditor has not conducted an examination in
				material compliance with the examination standards, the contract, or the act,
				and the administrator believes that the auditor cannot conform its conduct to
				the standards, contract, or the act, the administrator may replace the auditor
				with another auditor to complete the examination.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.9 - Examination entrance conference

Current through Vol. 24-12, July 15, 2024
Rule 9
(1) The
				administrator shall determine before or as part of the entrance conference
				whether the person is an "eligible holder," the basis for that determination,
				and whether the person has elected to follow the streamlined audit process. All
				of the following apply:
(a) If the eligible
				holder claims its status based on a percentage of payroll or percentage of real
				and tangible personal property, except inventory, owned or rented in this
				state, the percentage must be 20% or greater than the percentage in paragraph
				(i) or (ii) of this subdivision:
(i) The
				numerator is the aggregate Michigan payroll during the entire 4 years that
				follow the dormancy period and the denominator is the aggregate of all payroll
				during the entire 4 years that follow the dormancy period.
(ii) The numerator is the aggregate of all
				Michigan real and tangible personal property, except inventory, owned or rented
				in Michigan during the entire 4 years that follow the dormancy period and the
				denominator is the aggregate of all real and tangible personal property, except
				inventory, owned or rented everywhere during the entire 4 years that follow the
				dormancy period.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.11 - Confidentiality

Current through Vol. 24-12, July 15, 2024
Rule 11.
(1) The
				auditor shall ensure that all nonpublic records obtained from the state and the
				person subject to examination are confidential records.
(2) Auditors shall not disclose confidential
				information obtained during the audit to any person other than to the
				administrator or his or her designee and, in the case of a multistate
				examination, to authorized representatives of a state participating in the
				examination but only to the extent such confidential information relates to
				property that may be subject to reporting in such state.
(3) Auditors shall not use confidential
				information obtained from the person subject to an examination for any purpose
				other than for purposes of the examination. Auditors shall take all reasonable
				steps to ensure that the confidential information provided by the person
				subject to an examination is securely maintained.
(4) An auditor and a person subject to
				examination may enter into a mutually agreeable nondisclosure agreement.
				However, if the person and the auditor are unable to enter into a mutually
				agreeable nondisclosure agreement within 30 calendar days from the date the
				agreement was first presented by the auditor to the person subject to the
				examination, then the examination shall commence without an agreement in place
				subject to subrules (1) to (3) of this rule.
(5) The auditor must promptly cure any
				deficiencies and comply with any applicable federal and state laws and
				regulations pertaining to unauthorized disclosures. The administrator and the
				auditor will cooperate to mitigate, to the extent practicable, the effects of
				any breach, intrusion, or unauthorized use or disclosure. The auditor must
				report to the administrator in writing any use or disclosure of confidential
				information, whether suspected or actual, other than as required by the
				contract within 10 days of becoming aware of the use or disclosure or the
				shorter time period as is reasonable under the circumstances.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.12 - Records format

Current through Vol. 24-12, July 15, 2024
Rule 12.
(1) In
				order to conduct the examination efficiently, a searchable machine-sensible
				record is preferred. The person subject to examination may provide information
				in an alternative format such as hardcopy, microfilm, microfiche, or other
				storage-only imaging systems in the form of a machine-sensible record. The
				auditor may adjust the timeline for the examination if a searchable
				machine-sensible record is not provided.
(2) For purposes of examining accounting
				records, machine-sensible records shall be capable of being retrieved and
				converted to a standard record format, such as, but not limited to, chart of
				accounts, income statement, balance sheet, account ledgers, and bank
				reconciliations. The person subject to examination is not required to retrieve
				and convert machine-sensible records other than those created in the ordinary
				course of business.
(3) All
				hardcopies and data stored on microfilm, microfiche, or other storage-only
				imaging systems shall be provided in a manner that allows the auditor to locate
				any particular record.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.13 - Remediation

Current through Vol. 24-12, July 15, 2024
Rule 13.
(1) After
				the compilation of the preliminary findings from an examination, the auditor
				shall provide a copy of the findings to the person subject to examination and a
				notice that a remediation period of 120 days begins upon receipt of the
				findings. During the remediation period, the property presumed abandoned may be
				remediated from the preliminary findings by providing documents to the auditor
				that include 1 or more of the following:
(a)
				Documentation of accounting or data entry error.
(b) Documentation that the last known owner
				address is not in this state or that the owner address is unknown and the
				person subject to an examination is not domiciled in this state.
(c) Documentation from the presumed owner
				indicating that the property is or is not owned by that person.
(d) Documentation of transactions or other
				activity by an owner that establishes that the property has not been
				abandoned.
(e) Documentation
				showing that the apparent liability has been satisfied.
(f) Documentation that the obligation did not
				exist or is not fixed and certain.
(g) Other documentation that proves that the
				property is not subject to or presumed abandoned under the act.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.14 - Examination report

Current through Vol. 24-12, July 15, 2024
Rule 14.
(1) The
				examination report shall be filed by the auditor with the administrator or his
				or her designee within 45 days following the closing conference with the person
				subject to examination.
(2) During
				the time period described in subrule (1) of this rule, the auditor shall adjust
				the calculation of the potential amount of property due based on any additional
				information presented to the auditor at the closing conference.
(3) A copy of the examination report shall be
				provided to the person subject to the examination.
Michigan Administrative Code › Department - Treasury › Bureau of Tax & Economic Policy › Uniform Unclaimed Property Act › Section R. 567.15 - Subsequent examinations

Current through Vol. 24-12, July 15, 2024
Rule 15.
(1) Upon
				acceptance of the audit report by the administrator and receipt of the property
				or amount deliverable, at the administrators discretion, the administrator
				shall not conduct or authorize a subsequent examination of the person for the
				property types and time periods covered in the examination.
(2) Intentional misrepresentation, evasion,
				or fraud on the part of the person will void any such agreement.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.1 - "Business income" defined

Current through Vol. 24-12, July 15, 2024
Rule 1. "Business income" means that income which is derived
				  during the regular course of a taxpayer's trade or business. The expenses
				  incurred in deriving the income are allowed as a deduction from gross income in
				  determining the taxpayer's adjusted gross income.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.4 - "Household income" defined

Current through Vol. 24-12, July 15, 2024
Rule 4.
(1) "Income"
				means the sum of federal adjusted gross income as defined in the internal
				revenue code, 26 U.S.C. S62 plus:
(a) Benefits
				received from federal social security, including supplemental security income
				(SSI), and railroad retirement benefits.
(b) Cash public assistance payments paid by a
				governmental unit.
(c) Unemployment
				insurance benefits.
(d) Worker's
				compensation payments whether for temporary disability, permanent disability,
				or death.
(e) Veteran's disability
				payments, pension benefits, or mustering out payments.
(f) Amounts received for loss of wages due to
				permanent disability.
(g) Amounts
				received as damages for personal injury or sickness.
(h) Amounts in excess of the claimant's
				contributions received from a pension plan or annuity.
(i) Life insurance proceeds, except benefits
				from insurance on a spouse.
(j)
				Money received from a person not a member of the same household who is legally
				obligated to support a member of the household.
(k) An inheritance, bequest, or devise,
				excluding an inheritance from a spouse.
(l) Educational benefits received under
				federal or state legislation with respect to services in the military or naval
				forces of the United States.
(m) A
				scholarship or other educational grant.
(n) Income from an obligation issued by a
				state or its political subdivisions, including this state.
(o) Gifts in cash or kind from
				nongovernmental sources exceeding $300.00.
(p) The portion of capital gains and
				dividends excluded or deducted from federal gross income.
(q) Death benefits paid by, or on behalf of,
				an employer.
(r) The portion of
				lump sum distributions from pension deducted from federal gross
				income.
(s) Earned income from
				foreign sources excluded from federal gross income.
(t) Accumulation distributions received from
				a trust not previously included in the claimant's adjusted gross
				income.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.5 - Residency; determination guidelines

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) A person
				who is domiciled in this state is a resident of this state. "Domicile" means
				the fixed, permanent, and principal home to which a person, wherever
				temporarily located, always intends to return. A person may have several
				residences or dwelling places but only may have 1 domicile at a particular
				time.
Domicile, once established, is not lost until there is a
				  concurrence of all of the following:
(a) The specific intent to abandon the old
				domicile.
(b) The intent to acquire
				a specific new domicile.
(c) Actual
				physical presence in the new state of domicile. Generally, the domicile of the
				wife follows that of the husband.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.6 - Income from obligations and securities of states other than Michigan

Current through Vol. 24-12, July 15, 2024
Rule 6.
(1) Gross
				interest and dividend income from obligations and securities of states other
				than Michigan, and their political subdivisions, not subject to federal income
				taxes, including such interest and dividends from qualifying mutual funds,
				shall be added to adjusted gross income.
(2) The income may be reduced by related
				expenses not deducted in computing federal adjusted gross income because of the
				internal revenue code, 26 U.S.C. S265(1).
(a) Example:
Gross interest income from state of Ohio
							 bonds&&&&.
$600.00
Expense (investment counseling fees, bank charges
							 brokerage
							 fees)&&&&&&&&&&&&&&&&&.
32.00
Interest income to be added to adjusted gross
							 income&&
_______ $568.00
(b) Interest on
				indebtedness incurred in carrying the obligation or security is not deductible
				from the interest or dividend income.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.7 - Add back of taxes on or measured by income

Current through Vol. 24-12, July 15, 2024
Rule 7.
(1) Taxes on
				or measured by income deducted in computing federal adjusted gross income shall
				be added back to federal adjusted gross income to determine the income subject
				to Michigan income tax.
(2) An
				individual who receives distributive income from partnerships, joint ventures,
				and subchapter S corporations is required to make the adjustment in subrule (1)
				if the partnership, joint venture, or subchapter S corporation paid city or
				state income tax on its distributive income and did not add back such taxes to
				the amounts distributed to the partners or shareholders.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.8 - Losses on sale or exchange of United States obligations; reporting

Current through Vol. 24-12, July 15, 2024
Rule 8. Losses on the sale or exchange of United States
				  obligations, the income of which the state is prohibited from taxing, shall be
				  subtracted from federal adjusted gross income. To do this, file form MI-1040D
				  and enter a zero in column "Z" of the line on which the loss is
				  reported.
(a) Example:
Mr. Smith is reporting a gain from the sale of stock in the
				  amount of $2,100.00 and a loss from the sale of United States obligations in
				  the amount of $900.00
(b)
				These transactions are reported on form MI-1040D as follows:
				_____________________________________________________________________
Federal
Michigan
Date
Date
Gain
Gain
Co. Z
Acquired
Sold
Col. Y
6. Stock $2,100.00
9-30-68
10-1-77
$2,100.00
U.S. Obligation
4-1-69
7-10-77
(900.00)
- 0 -
7. Capital gain distribution
8. Enter gain if applicable from form MI-4797 line
							 4(a)(1)
9. Enter your share of net ling-term gain or (loss)
							 from partnerships and fiduciaries
10. Enter your share of net long-term gain from small
							 business corporations (subchapter S)
11. Net gain or (loss) combine lines 6 through
							 19$2,100.00
$1,200.00
12. Long-term capital loss carryover attributable to
							 ( ) years beginning after 1969
( )
13. Net long term gain of (loss) combine lines 11 and
							 12 $2,100.00
$1,200.00
14. Combine the amounts shown on line 5 and 13 and
							 enter the net gain (loss) here $2,100.00
$1,200.00
15. If line 14 shows a gain -
(a) Enter 50% of line 13 or 50% of line 14, whichever
							 is smaller. Enter zero if there is a loss or no entry on line 13 $1,050.00
$600.00
(b) Subtract line 15(a) from line 14. Enter here and
							 carry amount in column Y to MI-1040 line 39(a) carry amount in column Z to
							 MI-1040 line 32(a) $1,050.00
$600.00
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.9 - Interest income and gains from sale or disposal of United States obligations exempted from state taxation; treatment; interest on federal income tax refunds

Current through Vol. 24-12, July 15, 2024
Rule 9.
(1) Interest
				income and gains from the sale or disposal of United States obligations, which
				are exempted from state taxation by the United States Constitution, treaties,
				and statutes, are deductible from adjusted gross income. The deduction for such
				income shall be reduced by any interest on indebtedness incurred in carrying
				the United States obligation and by any other expense, including amortized bond
				premiums, deducted from gross income to arrive at adjusted gross income. The
				income from the following United States obligations is not subject to state
				income tax:
(a) United States treasury bonds,
				notes, bills, and savings bonds.
(b) Bonds, notes, debentures, and other
				obligations issued by:
(i) Federal
				intermediate credit banks.
(ii)
				Federal land banks.
(iii) Federal
				home loan banks.
(iv) Central banks
				for co-operatives.
(v) Regional
				banks for co-operatives.
(vi)
				Tennessee valley authority.
(vii)
				United States postal service obligations.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.10 - Compensation for service in the armed forces of the United States; treatment

Current through Vol. 24-12, July 15, 2024
Rule 10.
(1)
				Compensation paid from federal appropriations, including retirement benefits,
				for military services in the armed forces is exempt from Michigan income tax,
				and is deductible from adjusted gross income by the recipient to the extent it
				is included in federal adjusted gross income.
(a) Example 1. Active duty personnel All
				military compensation is exempt.
(b) Exampe 2. Reservist
Figure for 206.10
Click
				  Here To View Image
The guardsman was federalized during the 2 weeks at camp and
				  at the monthly military drills. The pay for these came from federal
				  appropriations.
The $250.00 paid for riot duty came from state funds and is
				  subject to Michigan income tax.
(d) Example 4. National guard technicians
National guard technicians, although paid from federal funds,
				  are full-time civilian employees. Their civilian pay is subject to Michigan
				  income tax. They are members of the national guard, however, and compensation
				  paid for the 2 weeks' encampment and the monthly drills is military pay and is
				  exempt from Michigan income tax as in example 3.
(e) Example 5. Armory board of control
Compensation for serving as a member of an armory board of
				  control is subject to Michigan income tax.
(f) Example 6. Retirement benefits
Retirement benefits paid to retirees of the armed forces for
				  services performed while a member of the armed forces are exempt from Michigan
				  income tax.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.12 - Allocation and apportionment of income; adjustments

Current through Vol. 24-12, July 15, 2024
Rule 12.
(1)
				Salaries, wages, and other compensation received by a Michigan resident are
				allocated to Michigan. The credit provided in section 255 of Act No. 281 of the
				Public Acts of 1967, being §
									206.255
				of the Michigan Compiled Laws, may be claimed if the compensation was earned in
				another state and taxed by that state.
(2) Salaries and wages earned in Michigan by
				a nonresident are allocated to Michigan.
(3) Income from a trade or business as
				defined in
				R
				206.1 is allocated or apportioned to the state in
				which the activity takes place.
(4)
				Business income that is attributable to Michigan and 1 or more other states
				shall be apportioned as provided in sections 115 to 195 of Act No. 281 of the
				Public Acts of 1967, as amended, being §§
									206.115
				to
				206.195
				of the Michigan Compiled Laws.
(5)
				Net rents and royalties from real property are allocated to the state in which
				the real property is located.
(6)
				Net rents and royalties from tangible property are allocated to Michigan, if
				either of the following provisions applies:
(a) The personal property is utilized in
				Michigan.
(b) The rent is received
				by a Michigan resident or the recipient has a commercial domicile in Michigan
				and is not organized under the laws of, or subject to tax by, the state in
				which the property was utilized.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.13 - Exemption allowance; proration for nonresident or part-year resident; death of taxpayer

Current through Vol. 24-12, July 15, 2024
Rule 13.
(1) A
				person who is permanently leaving Michigan and is filing a final federal return
				covering less than 12 months shall file a Michigan return covering the same
				period and prorate the exemption allowance on the basis of months in Michigan
				during the calendar year to 12 months.
(2) A proration of the exemption allowance is
				not required because of the death of the taxpayer during the tax
				year.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.14 - Moving expenses

Current through Vol. 24-12, July 15, 2024
Rule 14. Persons moving into or out of the state of Michigan
				  shall allocate all adjustments to gross income resulting from the move to the
				  state of destination as shown in the following examples:
(a) Example 1. Wage earner moves to Michigan.
Figure for 206.14 (1 of 4)
Click
				  Here To View Image
Note: The Michigan income is reduced by the moving
				  expenses.
(b) Example 2.
				Taxpayer moves to Michigan and his reimbursed expenses exceeded the amount that
				could be deducted on his federal return.
Figure for 206.14 (2 of 4)
Click
				  Here To View Image
Note: Reimbursed moving expenses include reimbursement for
				  the cost of selling a house in former state, as this is a separate transaction
				  not included in the computation of the gain from the sale of the
				  residence.
Note: Taxpayer's excess reimbursed moving expense is taxable
				  in Michigan.
(c) Example 3.
				Wage earner moves from Michigan to another state.
Figure for 206.14 (3 of 4)
Click
				  Here To View Image
Note: Taxpayer's subtraction of income attributable to state
				  of destination is reduced by the moving expense.
(d) Example 4. Taxpayer moving out of
				Michigan whose reimbursed moving expenses exceeded the amount that could be
				deducted on his federal return.
Figure for 206.14 (4 of 4)
Click
				  Here To View Image
Note: Taxpayer's subtraction of income attributable to state
				  of destination includes the excess reimbursed moving expense.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.15 - Credit for income tax withheld from compensation

Current through Vol. 24-12, July 15, 2024
Rule 15.
(1) The
				income tax deducted and withheld from compensation under chapter 7 of Act No.
				281 of the Public Acts of 1967, as amended, is allowed as a credit against the
				income tax of the person from whose wages the tax was withheld. Credit shall be
				given to the employee even though such tax has not been paid to the department
				by the employer.
(a) Example 1. An employee
				received compensation of $15,000.00 from his employer for the year. The
				employer withheld tax of $500.00 from the employee and furnished him with a W-2
				wage and tax statement showing $500.00 withheld. The department shall give the
				employee credit for tax withheld of $500.00.
(b) Example 2. The employer paid his
				employees by check and withheld tax from each payment of wages. Each check
				contained a stub which itemized all deductions. One of the deductions was
				headed "Michigan Tax." The employees did not have W-2 wage and tax statements
				to attach to their individual income tax returns because the employer did not
				give the employees the statements. The employees shall receive credit against
				the tax established by their individual income tax returns for all tax they can
				prove was withheld. A copy of each check stub shall be accepted as evidence of
				the tax withheld unless the department can prove otherwise. If the employee
				cannot support his claim for tax withheld by W-2 wage and tax statements or
				check stubs, he shall file an employee complaint form with his income tax
				return.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.16 - Credit allowed resident for income tax paid to other states

Current through Vol. 24-12, July 15, 2024
Rule 16.
(1) A
				resident taxpayer is allowed a credit for tax imposed on income which is also
				subject to tax by another state of the United States, or political subdivision
				thereof, or the District of Columbia. This credit is limited to the smaller of
				(a) the Michigan tax on such income or (b) the tax imposed by the other state.
				The credit is that portion of the Michigan income tax that the income which is
				subject to tax in both states bears to total taxable income. Example:
Michigan wages
							 .........................................
$ 8,000.00
Wages earned in another
							 state&&&&&&
& 2,000.00
United States government bond interest&&&
. 1,000.00 _________
Adjusted gross
							 income&&&&&&&&&
& 11,000.00
United States government bond interest&&&
1,000.00
Total taxable
							 income&&&&&&&&&&
.. 10,000.00
Income subject to tax in both states $2,000.00
or 20%
Taxpayer has 2 exemptions 2 X $1,500.00
							 &&&&&&&&&&&&
& 3,000.00
Taxable balance
							 &&&&&&&&&&&&
7,000.00
Tax @ 4.6%
							 .....................................................
... 322.00
Tax paid to other state; $70.00
Maximum credit allowed 20% of $322.00&&
$ 64.00
In this example, the taxpayer cannot claim the full $70.00
				  paid to another state as his credit is limited to 20% of $322.00 or $64.40. The
				  credit cannot exceed the amount paid to another state.
(2) Since Michigan allows a subtraction of
				income attributable to other states the credit is ordinarily limited to tax
				imposed on compensation received for services rendered in another
				state.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.17 - City income tax credit

Current through Vol. 24-12, July 15, 2024
Rule 17.
(1) Each
				person subject to tax under Act No. 281 of the Public Acts of 1967, being
				§§
									206.1
				through
				206.532
				of the Michigan Compiled Laws, may claim a credit for a portion of the income
				taxes levied by cities in Michigan that are deductible if that person had not
				elected the standard deduction. For purposes of computations of this credit,
				city income taxes do not include penalties or interest paid.
(2) The amount of city income taxes used as a
				basis for computation of this credit shall be the city income tax paid by the
				taxpayer in the tax year. The tax paid shall be reduced by any refund of
				overpaid taxes of a prior year.
(3)
				If a person is assessed and pays additional city income taxes applicable to
				prior years, the additional taxes paid shall be added to the city income tax of
				the year in which they are paid for purposes of computation of this
				credit.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.19 - Adjustment of pre-tax gains or losses

Current through Vol. 24-12, July 15, 2024
Rule 19.
(1) A
				taxpayer, whose federal adjusted gross income includes gains and losses
				realized in the tax year from the disposition of property acquired prior to
				October 1, 1967, which are described in and subject to the provisions of
				subchapter P of the internal revenue code, 26 U.S.C.S1201 et seq., may reduce
				taxable income by the portion of gain or loss attributable to the period before
				October 1, 1967. When this election is made, it shall include all items of gain
				or loss realized during the taxable year.
(2) To compute this adjustment a fraction is
				applied to the gain. The denominator is the total months held and the numerator
				is the number of months held after October 1, 1967. In making this calculation,
				property acquired or disposed of from the first to the fifteenth of the month
				shall be counted from the first of the month and property acquired or disposed
				of after the fifteenth of the month shall be counted from the last day of the
				month.
(3) Losses resulting from
				the application of this rule shall not be carried forward.
Michigan Administrative Code › Department - Treasury › Customer Service Bureau › Income Tax › Section R. 206.20 - Withholding generally

Current through Vol. 24-12, July 15, 2024
Rule 20.
(1) Every
				employer, over whom Michigan has jurisdiction, required to withhold federal
				income tax from compensation paid an employee, shall also withhold Michigan
				income tax from (a) compensation paid to the employee if the employee is a
				resident of Michigan, and (b) from that portion of the compensation earned in
				Michigan if the employee is not a resident of Michigan, unless (i) the
				compensation is paid to an employee from whom the employer is prohibited from
				withholding Michigan income tax because of a federal law, or (ii) the employer
				is not required to withhold Michigan income tax because of a reciprocal
				agreement between Michigan and another state or between Michigan and another
				city. (See employer's tax guide.)
(2) Churches, schools, governmental agencies,
				and nonprofit organizations exempt from income tax shall withhold Michigan
				income tax from compensation paid employees the same as any other employer.
(a) Example 1. A church has a full-time
				secretary and withholds federal income tax from her compensation. The church
				shall also withhold Michigan income tax from her compensation.
(b) Example 2. A machine shop is located in
				Michigan close to the Indiana state line. It employs residents of both Michigan
				and Indiana and is required to withhold federal income tax from all employees.
				The firm shall withhold Michigan income tax from Michigan residents, but will
				not be required to withhold Michigan income tax from residents of Indiana who
				provide the employer with a certificate of nonresidency. Michigan and Indiana
				have a reciprocal agreement.
(c)
				Example 3. A contractor from Pennsylvania builds a shopping center in Michigan.
				He employs residents of Michigan from the local labor force and brings 2 of his
				permanent employees from Pennsylvania to Michigan for 3 months to supervise the
				construction. The contractor shall register and withhold Michigan income tax
				from the compensation paid to all employees engaged in the project including
				the compensation paid to the 2 residents of Pennsylvania for the compensation
				paid for the work performed in Michigan. This contractor has the same
				obligation to withhold the Michigan tax as a Michigan contractor who performs
				all of his business in Michigan.