What Michiganders Need To Know This Income Tax Filing Season

What Michiganders Need To Know This Income Tax Filing Season

LANSING - Michigan’s individual income tax filing season officially began on Feb. 12, 2021, according to a Michigan Department of Treasury press release.

Michiganders can start filing their 2020 tax year state individual income tax returns online or by mail. All individual income tax returns must be e-filed or postmarked by Thursday, April 15, 2021.

“We are ready to begin processing your state income tax return,” State Treasurer Rachael Eubanks said. “I encourage everyone to prepare your taxes early, especially those who collected unemployment benefits last year and didn’t have taxes withheld. If federal and state taxes are owed, getting an early start means you will have more time to figure out payment options.”

For Michiganders who received unemployment benefits in 2020 for the first time, this compensation is subject to federal and state taxes.

To report unemployment compensation along with any state or local income tax refunds received that year, taxpayers must fill out a 1099-G form. If you received an incorrect form, you should report the identity theft to the Unemployment Insurance Agency (UIA), and the UIA will issue a corrected 1099-G form once the identity theft is confirmed.

Taxpayers who are unable to obtain a corrected form in time should still file an accurate tax return, reporting only the income they received.

For Michiganders that choose to electronically file and direct deposit their income tax, the press release said doing so is convenient, safe and secure. Last year, more than 4.4 million Michigan taxpayers e-filed, which is 86% of state income tax filers.

If you choose to mail the paper forms instead of e-filing, printed tax forms are being distributed and will be available in limited quantities by mid-Feb. at public libraries, some Northern Michigan post offices, Michigan Department of Health and Human Services county offices and Treasury Field Offices.

For the convenience of taxpayers, both the beginning and end of the individual income tax filing season are the same as the Internal Revenue Service (IRS).

According to another press release by the Michigan Department of Treasury, working families and individuals with low to moderate income may be able to receive Michigan’s Earned Income Tax Credit (EITC).

To qualify for EITC, individuals must meet certain requirements and file a federal income tax return, even if no tax is owed or there is no requirement to file a return. If a federal EITC is granted, the state of Michigan will provide a 6% supplemental EITC when the taxpayer files his or her state income tax return.

“The Earned Income Tax Credit is a very important tax credit that all eligible Michiganders should seek out,” Eubanks said. “The extra income this tax credit provides can be really helpful to working, low to moderate income families. Please don’t hesitate to seek out assistance so you can claim it on both your federal and state individual income tax returns.”

The amount working families and individuals may receive from the federal EITC depends on income, filing status and number of qualifying children claimed as dependents on the taxpayers federal income tax return.

The EITC reduces the amount of tax owed by a working family or individual and may provide a refund.

The press release said during the 2019 tax year, approximately 738,400 claimants received the Michigan EITC, totaling almost $110.6 million with an average credit amount of $150.

The department estimates there are thousands of Michiganders who are eligible for both the federal and state EITCs and do not claim them each year.

Additional Resources

How to report an incorrect 1099-G tax form

Learn more about e-filing

Requirements for EITC and learn more about it

UIA

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