Michigan Department of Treasury, 807 (Rev. 12-22), Page 1 of 5 Issued under authority of Public Act 281 of 1967 as amended.
2022 MICHIGAN Composite Individual Income Tax Return
This return is due April 18, 2023. Type or print clearly in blue or black ink.
(MM-DD-YYYY) (MM-D
Amended Return
D-2022)
Return is for calendar year 2022 or for tax year beginning: and ending: - 2022
Filers whose tax year ends in 2022 should use this form. Do not use this form if the tax year ends in a year other than 2022.
1. Name of Partnership, S Corporation or Other Flow-Through Entity 2. Federal Employer Identication Number (FEIN)
3. Mailing Address (Number, Street or P.O. Box)
4. City or Town State ZIP Code
NOTE: Individual members subject to a federal excess business loss limitation may not participate in a composite ling.
5. Ordinary income or (loss) from U.S. Form 1065 or U.S. Form 1120S................................................ 5.
6. Additions from line 37......................................................................................................................... 6.
7. Subtotal. Add lines 5 and 6................................................................................................................. 7.
8. Subtractions from line 40.................................................................................................................... 8.
9. Total income subject to apportionment. Subtract line 8 from line 7 .................................................... 9.
10. Apportionment percentage from MI-1040H (see instructions)............................................................ 10.
11. Total Michigan apportioned income. Multiply line 9 by the percentage on line 10.............................. 11.
12. Michigan allocated income or (loss) from line 45 ............................................................................... 12.
13. Flow-through entity tax non-electing entity income or (loss) adjustment (see instructions) ............... 13.
14. Total Michigan income. Add lines 11, 12 and 13................................................................................. 14.
15. Michigan income attributable to Michigan residents (see instructions for Schedule C)...................... 15.
16. Michigan income attributable to nonparticipating members (see instructions for Schedule B)
.......... 16.
17. Michigan income attributable to participants (see instructions for Schedule A)..................................
17.
18. Exemption allowance from line 51
...................................................... 18. 00
19. SEP, SIMPLE or qualied plan deductions from line 54 ..................... 19. 00
20. Add lines 18 and 19............................................................................................................................ 20.
21. Taxable income. Subtract line 20 from line 17.................................................................................... 21.
22. Tax. Multiply line 21 by 4.25% (0.0425) ............................................................................................. 422.
23.
Credit for participants’ allocated share of ow-through entity tax reported by ler from Schedule A
(see instructions) ............................................................................................................................... 423.
24. Michigan extension payments and estimated tax payments .............................................................. 424.
25. 2022 AMENDED RETURNS ONLY. See instructions ........................................................................ 425.
26.
If the total of lines 23, 24 and 25 is less than line 22, enter TAX DUE.
Include interest ______________ and penalty _____________ , if applicable .........................
PAY 426.
27. Overpayment. If the total of lines 23, 24 and 25 is more than line 22, enter overpayment .............. 27.
28. Credit Forward. Amount of line 27 to apply to 2023 estimated tax ................................................... 428.
29. Subtract line 28 from line 27..............................................................................................
REFUND 429.
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TAXPAYER CERTIFICATION.
I declare under penalty of perjury that the information in this
return and attachments is true and complete to the best of my knowledge. I have obtained the required
power of attorney from each of the members of this composite return and the entity will resolve the issue
of any tax liability.
PREPARER CERTIFICATION. I declare under penalty of
perjury that this return is based on all information of which I have
any knowledge.
Filer’s Signature Date Preparer’s PTIN, FEIN or SSN
By checking this box, I authorize Treasury to discuss my return with my preparer.
Preparer’s Name (print or type)
Mailing: Make check payable to “State of Michigan.”
Write the entity’s FEIN, “Composite Return” and tax year on the check.
Mail completed returns to:
Michigan Department of Treasury
P.O. Box 30058
Lansing, MI 48909
Preparer’s Signature
Preparer’s Business Name, Address and Telephone Number
Continued on Page 2.
Reset Form
2022 807, Page 2 of 5
Name of Partnership, S Corporation or Other Flow-Through Entity Federal Employer Identication Number
ADDITIONS
30. Net income or (loss) from rental real estate activities......................................................................... 30.
31. Net income or (loss) from other rental activities ................................................................................. 31.
32. Portfolio Income or (loss):
a. Interest income
.............................................................................................................................. 32a.
b. Dividend income............................................................................................................................ 32b.
c. Royalty income.............................................................................................................................. 32c.
d. Net short-term capital gain or (loss) (from U.S. Schedule K) ........................................................ 32d.
e. Net long-term capital gain or (loss) (from U.S. Schedule K).......................................................... 32e.
f. Other portfolio income
................................................................................................................... 32f.
33. Net gain or (loss) under Section 1231................................................................................................ 33.
34. Other income from U.S. Schedule K .................................................................................................. 34.
35.
State or local taxes measured by income, including any allocated share of tax paid by an electing
ow-through entity (see instructions).................................................................................................. 35.
36. Other miscellaneous additions (include a supporting statement) ...................................................... 36.
37. Total additions. Add lines 30 through 36. Enter here and on line 6 .................................................... 37.
SUBTRACTIONS
38. Income or (loss) from other partnerships, S corporations and duciaries .......................................... 38.
39. Other miscellaneous subtractions (include a supporting statement). Describe: ________________ 39.
40. Total subtractions. Add lines 38 and 39. Enter here and on line 8 ..................................................... 40.
MICHIGAN ALLOCATED INCOME OR (LOSS)
41. Guaranteed payments to all members allocated to Michigan:
a. Participating nonresidents - for services performed in Michigan................................................... 41a.
b. Nonparticipating nonresidents - for services performed in Michigan............................................. 41b.
c. Michigan residents - total payments .............................................................................................. 41c.
42. Income attributable to other Michigan partnerships, S corporations or duciaries............................. 42.
43. Net Michigan capital gains or (losses) not subject to apportionment (from U.S. Schedule D) ........... 43.
44. Other Michigan allocated income or (loss) (see instructions)............................................................. 44.
45.
Total Michigan allocated income or (loss).
Add lines 41a through 44. Enter here and on line 12 ......................................................................... 45.
EXEMPTION ALLOWANCE. See instructions for completing this section.
46. Michigan income to participants from line 17 ..................................................................................... 46.
47. Total income from Participants’ Total Income Worksheet, page 9 ...................................................... 47.
48.
Percent of income attributable to Michigan.
Divide line 46 by line 47 (must be between 0 and 100%)................................................................... 48.
49.
Prorated exemption allowance per participant.
Multiply line 48 by $5,000 (exemption allowance).
............................................................................. 49.
50. Number of participants included in this return .................................................................................... 50.
51. Total prorated exemption.................................................................................................................... 51.
SEP, SIMPLE OR QUALIFIED PLAN DEDUCTIONS (PARTNERS ONLY)
52. SEP, SIMPLE or qualied plan deductions for participants (include a schedule) ............................... 52.
53. Percent of income attributable to Michigan from line 48..................................................................... 53.
54.
SEP, SIMPLE or qualied plan deductions attributable to Michigan.
Multiply line 52 by the percentage on line 53. Enter here and on line 19
........................................... 54.
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2022 807, Page 3 of 5
Name of Partnership, S Corporation or Other Flow-Through Entity Federal Employer Identication Number
SCHEDULE A: SCHEDULE OF PARTICIPANTS (Must have at least two participants, see instructions)
Column 1
Participant Information
Column 2
Distributive Share of
Michigan Income and
Michigan Guaranteed
Payments
Column 3
Share of Michigan Tax
Column 4
Allocated Share of
Flow-Through Entity Tax
Credit
Participant Name
Participant FEIN/SSN
Participant Address
Participant Name
Participant FEIN/SSN
Participant Address
Participant Name
Participant FEIN/SSN
Participant Address
Participant Name
Participant FEIN/SSN
Participant Address
Participant Name
Participant FEIN/SSN
Participant Address
Participant Name
Participant FEIN/SSN
Participant Address
Check here if additional page(s) used.
Enter totals from additional page(s),
if applicable.
Total Columns 2, 3 and 4. Carry total from
Column 2 to page 1, line 17. Carry total from
Column 4 to page 1, line 23.
2022 807, Page 4 of 5
Name of Partnership, S Corporation or Other Flow-Through Entity Federal Employer Identication Number
SCHEDULE B: SCHEDULE OF NONPARTICIPANTS
Column 1
Nonparticipant Information
Column 2
Distributive Share of Michigan Income*
and Michigan Guaranteed Payments
Nonparticipant Name Nonparticipant FEIN/SSN
Nonparticipant Address
Nonparticipant Name Nonparticipant FEIN/SSN
Nonparticipant Address
Nonparticipant Name Nonparticipant FEIN/SSN
Nonparticipant Address
Nonparticipant Name Nonparticipant FEIN/SSN
Nonparticipant Address
Nonparticipant Name Nonparticipant FEIN/SSN
Nonparticipant Address
Nonparticipant Name Nonparticipant FEIN/SSN
Nonparticipant Address
Nonparticipant Name Nonparticipant FEIN/SSN
Nonparticipant Address
Nonparticipant Name Nonparticipant FEIN/SSN
Nonparticipant Address
Nonparticipant Name Nonparticipant FEIN/SSN
Nonparticipant Address
Check here if additional page(s) used. Enter totals from additional page(s),
if applicable.
Total Column 2. Carry total from Column 2 to page 1, line 16
* The income of C corporation members reported here is for reconciliation purposes of this form and is not
used to compute a CIT liability.
2022 807, Page 5 of 5
Name of Partnership, S Corporation or Other Flow-Through Entity Federal Employer Identication Number
SCHEDULE C: SCHEDULE OF MICHIGAN RESIDENTS
Column 1
Resident Information
Column 2
Distributive Share of Michigan Income and
Michigan Guaranteed Payments
Resident Name Resident FEIN/SSN
Resident Address
Resident Name Resident FEIN/SSN
Resident Address
Resident Name Resident FEIN/SSN
Resident Address
Resident Name Resident FEIN/SSN
Resident Address
Resident Name Resident FEIN/SSN
Resident Address
Resident Name Resident FEIN/SSN
Resident Address
Resident Name Resident FEIN/SSN
Resident Address
Resident Name Resident FEIN/SSN
Resident Address
Resident Name Resident FEIN/SSN
Resident Address
Check here if additional page(s) used. Enter totals from additional page(s),
if applicable.
Total Column 2 and carry to page 1, line 15
2022 807, Page 6
Instructions for Form 807, Michigan Composite Individual Income Tax Return
Denitions
The following are definitions for the purposes of this form.
Flow-through entity (FTE): An S corporation; partnership;
limited partnership; limited liability partnership; or limited
liability company that is not taxed as a C corporation for
federal income tax purposes. FTE does not include a publicly
traded partnership.
Intermediate FTE: An FTE in a tiered structure, that has an
interest in another FTE.
Member of an FTE: An individual; estate; trust; or
intermediate FTE.
Nonresident member: An individual who is not domiciled in
this state; nonresident estate or trust; or intermediate FTE with
a nonresident ultimate owner.
Participant: A nonresident member who has elected to
participate in a composite return.
Ultimate owner: An individual, estate or trust that has an
interest in an FTE or intermediate FTE.
Filing a Return
A Composite Individual Income Tax Return (Form 807) is
a collective individual income tax filing for two or more
nonresident members filed by the FTE. This form is used to
report and pay individual income tax under Part 1 of Public
Act 281 of 1967, as amended. This return is not an entity-level
filing for tax imposed on the FTE.
An FTE is not required to file Form 807. The filing FTE
and participants must agree to comply with the provisions
described in the sections “Filing and Participation
Requirements” and “Reporting to Participants.” An FTE may
choose to file Form 807 on behalf of its nonresident members
who elect to participate. An intermediate FTE may also be
eligible to file a composite return (see “Tiered Entities”).
Participation on a composite return will eliminate the need
for an individual ultimate owner to file a Michigan Individual
Income Tax Return (Form MI-1040) when the ultimate owner
has no other Michigan-sourced income. If the composite return
does not eliminate the ultimate owner’s requirement to file
an MI-1040, the individual ultimate owner would claim their
share of tax paid on the composite return as withholding on the
MI-1040. See “Composite Filer Participants” in the MI-1040
instruction book for more information.
Flow-through Entity Tax
The flow-through entity tax is levied and imposed on certain
electing entities with business activity in Michigan. Generally,
the flow-through entity tax allows the entity to elect to pay
tax on certain income at the individual income tax rate. The
members of that entity are eligible to receive a refundable
income tax credit equal to the tax previously paid on that
income by the flow-through entity.
The filing of a flow-through entity tax return will not satisfy
the respective filing obligations of members, as it neither
reports the income of members nor claims the refundable tax
credit that may be applicable for that income. The filing of a
composite return is a separate and distinct obligation from the
filing of a flow-through entity tax return.
Electing flow-through entities must file the Michigan
flow-through entity tax annual return and pay any tax due
before filing the composite return.
A member of flow-through entity that elected to pay the
Michigan flow-through entity tax may claim a refundable
credit, and will report an addition. See instructions for lines 23
and 35 on pages 8 and 9, respectively.
Tiered Entities
An FTE is part of a tiered structure if it has one or more
members that are also FTEs. A tiered structure consists
of a source FTE and one or more intermediate FTEs. The
intermediate FTE receives income from the source FTE and
the income is passed through to the ultimate owner(s).
The intermediate FTE may not participate in the composite
return if:
• The composite filer cannot identify the intermediate FTE’s
participating ultimate owner(s)
• The intermediate FTE has elected to pay the flow-through
entity tax and paid tax on a non-electing entity’s income
A C corporation or an entity that files federally as a
C corporation is not eligible to participate in the composite
return.
An intermediate FTE that generated its own income or loss
and has two or more nonresident members may file its own
composite return even if it participated on another composite
return. If an intermediate FTE participated on another FTE’s
composite return, it should not include any income or tax paid
on its behalf with the other FTE’s composite return.
For each participating intermediate FTE include a Tiered
Structure Schedule from the source FTE to the ultimate owner,
with the following:
• Details for each tier of the tiered structure:
• FTE name, FEIN and ownership percentage for each tier
• Details for each participating ultimate owner:
• Name, address, account number, distributive share of
Michigan income, tax and ownership percentage
Filing and Participation Requirements
Two or more participating nonresident members are required
for an FTE to file a composite return. An intermediate
FTE may participate in a composite return unless it has
elected to pay the flow-through entity tax and paid tax on a
non-electing entity’s income. Further, the intermediate FTE
may only participate in a composite return if the filing FTE is
able to include with the composite return the Tiered Structure
Schedule, which provides the details for each tier from the
source FTE to the ultimate owner, including the intermediate
FTE’s participating ultimate owner’s name, address, account
number, distributive share of Michigan income and tax (see
“Tiered Entities”).
All of the following conditions must apply to the nonresident
ultimate owner for participation in a composite return. The
nonresident ultimate owner:
• Is subject to Michigan individual income tax
• Was not a Michigan resident (full-year or part-year)
• Agrees to claim only one Michigan exemption
2022 807, Page 7
• Does not have a federal excess business loss limitation
• Is not a C corporation or has not elected to file federally as
a C corporation.
Due Date of Return
The 2022 composite return is for filers whose tax year ends in
2022. If the FTE’s tax year does not end in 2022, do not use
this form. Use the appropriate year that corresponds to the
year the ultimate owner will include the income in their federal
individual income tax filing.
The composite return for any tax period ending in 2022 is due
April 18, 2023. The return for any period ending in 2023 will
be due April 16, 2024.
If the FTE cannot file by the due date, a request for an
extension can be filed before the original due date. See
“Requesting an Extension”.
Requesting an Extension
The filer may request an extension of time to file by filing
an Application for Extension of Time to File Michigan Tax
Returns (Form 4) on or before the original due date of the
composite return. The remaining estimated annual tax liability
that has not been satisfied by estimated payments must be
remitted with Form 4. A Michigan extension, Form 4, must be
filed even if the FTE files a federal extension. An extension of
time to file is NOT an extension of time to pay.
When completing Form 4, line 1, check “Fiduciary Tax
(includes Composite Filers)” and use the filing FTE’s name and
FEIN to ensure the payment is properly credited to the filing
FTE’s account. When the composite return is filed, include a
copy of Form 4.
Required Documentation
Include only the following items, as applicable, with the
composite return:
• Copy of U.S. Form 1065 (5 pages) or U.S. Form 1120S
(5 pages)
• Michigan Schedule of Apportionment (Form MI-1040H)
• Completed Schedule A, Schedule of Participants
• Tiered Structure Schedule (see “Tiered Entities”)
• Completed Schedule B, Schedule of Nonparticipants
• Completed Schedule C, Schedule of Michigan Residents
• Statement signed by an authorized officer or general partner
certifying that each participant has been informed of the
terms and conditions of this program of participation
• Include supporting documentation to support the
flow-through entity tax credit, if applicable.
• A copy of Form 4.
Reporting to Participants
An FTE filing Form 807 must report the following information
to each participant on the composite return:
• FEIN of the FTE
• Tax year of the FTE
• The participant’s distributive share of income allocated or
apportioned to Michigan from Schedule A, Schedule of
Participants, Column 2
• The participant’s share of tax liability on the composite
return filed by the FTE from Schedule A, Schedule of
Participants, Column 3
• The participant’s allocated share of flow-through entity tax
credit from Schedule A, Schedule of Participants, Column 4.
Specify that this credit should not be claimed on any other
income tax return.
• The FTE’s Michigan sales and the FTE’s total sales
everywhere
• The participant’s prorated exemption allowance as computed
on line 49 of the composite return.
The FTE may use any method to report the necessary
information to the participants so long as it conveys the
information listed above. Treasury recommends that the FTE
provides the information to the participants as a supplemental
attachment to their federal Schedule K-1, which provides the
participant with the information necessary to file an MI-1040 if
the ultimate owner has other Michigan-sourced income.
2023 Estimated Tax Payments
Estimated income tax payments must be remitted with
an Estimated Income Tax Voucher for Fiduciary and
Composite Filers (Form MI-1041ES). For each quarter,
file one Form MI-1041ES with the quarterly estimated
payment for all participants whose share of annual
income tax liability is expected to exceed $500 after
exemptions and credits. Form MI-1041ES must be
completed with the name and FEIN of the FTE that
will claim the estimated payments on their composite
return. Do not submit estimated payments with Form
MI-1041ES for members who are not participating in the
composite return.
FTEs using a calendar tax year must remit quarterly estimated
payments with Form MI-1041ES by April 18, 2023; June 15,
2023; September 15, 2023; and January 16, 2024. FTEs with a
fiscal tax year must remit quarterly estimated payments with
Form MI-1041ES using the due date that corresponds with its
fiscal tax year end. The first estimated payment is due on the
15th day of the fourth month after the prior fiscal tax year ends.
Quarterly estimated payment due dates for a fiscal tax year
filer apply regardless of the participants’ filing tax year.
Amended Returns
To amend, file Form 807 and check the Amended Return box
at the top of page 1 of the form. Provide a statement to explain
the reason(s) for amending. Include all applicable schedules and
supporting documentation. It is not necessary to include a copy
of the original return.
Schedules
Schedule A, Schedule of Participants:
Complete this schedule for all participants. See “Filing and
Participation Requirements” for additional information.
If an intermediate FTE is participating on the composite
return, the filer must only report the income attributable to the
participating ultimate owner(s) of that intermediate FTE on
Schedule A. See “Tiered Entities” for information about the
required Tiered Structure Schedule.
If the filer elected to pay FTE tax, enter in Column 4 each
participant’s credit that is reported on the filer’s Schedule for
Reporting Member Information for a Flow-Through Entity
2022 807, Page 8
that is accompanied with the Michigan flow-through entity tax
annual return. However, participants’ credits for this tax year
are limited to only credits generated by the flow-through entity
filing this composite return based on the filer’s FTE annual tax
return. Do not include credits generated by any other electing
flow-through entity. The credits should include the following:
1. For FTE tax levied on the filer’s current tax year, report
each participant’s share of FTE tax paid by the filer
through the fifteenth day of the third month after the filer’s
tax year end.
2. For FTE tax levied on the filer for any previous tax year,
report each participant’s share of that tax paid during the
current tax year excluding any amount reported in item
number 1.
Example: FTE is a calendar year taxpayer and timely paid
$1,000 in quarterly estimated tax payments for Year 1. FTE also
requested and received an extension of time to file the Year 1
FTE tax annual return. When filing the Year 1 FTE tax annual
return on September 30, Year 2, FTE determined that tax was
owed and paid an additional $600 in tax, plus $200 in combined
penalty and interest. Members X and Y each own 50% of FTE
and participate on a composite return for Year 1. Their credits
are based on each member’s share of the $1,000 in taxes levied
for Year 1 and paid as of March 15, Year 2, $500 each. Even
though the additional $600 tax payment was paid toward FTE’s
Year 1 liability and by the extended due date of that return, that
payment is not eligible for a Year 1 credit. Instead, that payment
may be claimed as a credit by members on their Year 2 annual
return. The $200 payment attributable to penalty and interest is
not eligible to be claimed for the credit in any tax year.
Complete additional copies of Schedule A as needed. Subtotal
each schedule and include the grand totals of Columns 2, 3
and 4 on the first page of the schedule. Carry the grand total
of Column 2 to line 17. The grand total of Column 3 should
reconcile to line 22. Carry the grand total of Column 4 to
line 23.
Schedule B, Schedule of Nonparticipants:
Complete this schedule for all nonparticipants that are not
Michigan residents. If intermediate FTEs are participating
on the composite return, the filer must only report the
income attributable to nonparticipants on Schedule B. If a
C corporation or an entity that files federally as a
C corporation has an interest in the filing FTE, report the
income here. Reporting this income is for reconciliation
purposes only and is not used to compute a Corporate Income
Tax (CIT) liability. Complete additional copies of Schedule B
as needed. Subtotal each schedule and include the grand total
of Column 2 on the first page of the schedule. Carry the grand
total of Column 2 to line 16.
Schedule C, Schedule of Michigan Residents:
Complete this schedule for Michigan residents. A Michigan
resident may not participate on a composite return. If
intermediate FTEs are participating on the composite return,
the filer must only report the income attributable to Michigan
residents on Schedule C. Reporting this income is for
reconciliation purposes only. Complete additional copies of
Schedule C as needed. Subtotal each schedule and include the
grand total of Column 2 on the first page of the schedule. Carry
the grand total of Column 2 to line 15.
Line-by-Line Instructions
Lines not listed are explained on the form.
Line 5: Enter ordinary income or (loss) from U.S. Form 1065,
line 22 or U.S. Form 1120S, line 21.
Line 10: Enter the apportionment percentage from
Form MI-1040H. See MI-1040H instructions on determining
the apportionment percentage and for information regarding
income tax nexus standards.
Line 13: Enter the Michigan-sourced income from
non-electing flow-through entities, if any, that was reported
on the filer’s Michigan flow-through entity tax annual return.
Line 14: The amount on this line should equal the total of
lines 15, 16 and 17.
Complete Schedule A, Schedule of Participants and if
applicable, Schedule B,
Schedule of Nonparticipants
and Schedule C, Schedule of Michigan Residents before
continuing to line 15.
Line 15: Carry the total from Column 2 of the Schedule C,
Schedule of Michigan Residents to this line.
Line 16: Carry the total from Column 2 of the Schedule B,
Schedule of Nonparticipants
to this line.
Line 17: Carry the total from Column 2 of the Schedule A,
Schedule of Participants to this line.
Line 22: Multiply line 21 by the tax rate on line 22. The tax
should reconcile to the grand total from Column 3 of the
Schedule A, Schedule of Participants.
Line 23: Enter the total of participants’ allocated share of
flow-through entity tax reported on Schedule A, Schedule of
Participants, Column 4.
Line 25: This line is for amended returns only. Enter the
refund and/or credit forward amount received on the original
return as a negative number. Enter the amount paid with
the original return as a positive number. Do not include any
interest or penalty paid with the original return.
Line 26: Pay. If the total of lines 23, 24 and 25 is less than
line 22, enter the balance of the tax due. This is the tax owed
with the return. Enter any applicable penalties and interest in
the spaces provided. Add tax, penalty and interest together and
enter the total on this line. Make the check payable to “State of
Michigan.” Write the ling company’s FEIN, “Composite
Return” and the tax year on the front of the check. To ensure
accurate processing of the return, remit payment for this return
only. Estimated tax payments should be remitted separately
with MI-1041ES vouchers. If the balance due is less than $1, no
payment is required. To compute applicable penalty and interest
visit www.michigan.gov/iit.
Line 29: Refund. If the total of lines 23, 24 and 25 is more
than line 22, the overpayment will be refunded. Treasury will
not refund amounts less than $1.
Mail completed returns to:
Michigan Department of Treasury
P.O. Box 30058
Lansing, MI 48909
2022 807, Page 9
Additions
Lines 30 through 34: Enter income from lines 2,
3c, 5, 6a, 7, 8, 9a, 10 and 11 of U.S. Form 1065
Schedule K or from lines 2, 3c, 4, 5a, 6, 7, 8a, 9 and 10 of
U.S. Form 1120S Schedule K. Guaranteed payments, income
attributable to other Michigan duciaries or FTEs should be
allocated to Michigan on lines 41 through 44.
Line 35: Enter the amounts of state and local income tax
used to determine ordinary income on U.S. Form 1065,
line 22 or U.S. Form 1120S, line 21. Add the participants’
share of Michigan flow-through entity taxes paid and
deducted from income on the filer’s federal tax return for this
tax year.
Line 36: Enter other additions to income, such as gross
interest and dividends from obligations or securities of states
and their political subdivisions other than Michigan. Include
gross expenses from the production of Michigan oil and gas
and nonferrous metallic minerals extraction subject to Michigan
severance tax. Adjustments for bonus depreciation are not
required. For purposes of individual income tax, Michigan
treatment of bonus depreciation conforms with federal law. If
line 38 results in a net loss, enter here as a positive number.
Subtractions
Note: Charitable contributions and other amounts reported
as itemized deductions on U.S. Schedule A are not allowed
as subtractions when determining Michigan taxable income.
Do not adjust for bonus depreciation.
Line 38: Enter the net income or (loss) from other fiduciaries
or other FTEs included in income. If line 38 results in a net
loss, do not enter here but on line 36 as a positive number
instead.
Line 39: Enter amounts, such as interest from U.S.
obligations that are included in line 32a and other deductions
used to compute AGI, that were not included in determining
ordinary income. This includes section 179 depreciation
and other deductions included line 11 and 12 of U.S. Form
1120S Schedule K and on line 12 and 13 of U.S. Form 1065
Schedule K to the extent reportable in determining AGI. Also
include pension benefits paid to nonresident partners that are
included in ordinary income but are excluded from Michigan
tax under section 114 of Title 4 of the U.S. Code. Also include
gross income and related expenses from producing Michigan
oil and gas and nonferrous metallic minerals extraction to
the extent subject to Michigan severance tax and included
in federal taxable income. Subtract the participants’ share of
Michigan flow-through entity taxes refunded and included in
income on the filer’s federal tax return for this tax year. Include
a schedule of all subtractions.
Michigan Allocated Income or Loss
Line 41: Enter all guaranteed payments attributable to
Michigan. This includes all payments to Michigan residents and
payments to nonresidents for services performed in Michigan.
Line 42: Enter income or (loss) from other fiduciaries or
other FTEs attributable to Michigan that have not been reported
on another composite return. Include a schedule showing the
amount of income or (loss) attributable to each.
Line 43: Enter gains or (losses) from the sale of real
or personal property located in Michigan not subject to
apportionment.
Line 44: Enter any other income or (loss) allocated to
Michigan.
Include any Michigan net operating loss (NOL) deduction.
The NOL deduction may be taken only to the extent that it is
attributable to the same participants from the loss year, and the
participants have the same percentage of ownership. Include all
supporting documentation.
Include any Michigan standard deduction as a negative number.
The standard deduction cannot exceed the qualified participants
share of Michigan tax. The standard deduction of $20,000
against taxable income before personal exemptions is available
to a participant who was born during the period January 1,
1946 through December 31, 1952 (Tier 2) and reached age 67.
A participant that is in Tier 2 and eligible for the Michigan
standard deduction may increase the $20,000 deduction to
$35,000 if the participant received retirement or pension
benefits from employment with a governmental agency that
was not covered by the federal Social Security Act.
A participant born during the period January 1, 1953 through
January 1, 1956 (Tier 3), and reached the age of 67 on or before
December 31, 2022, would be entitled to the standard deduction
but would not be entitled to a personal exemption.
Although participants may be eligible for a standard deduction,
nonresidents are not subject to tax on retirement and pension
benefits and therefore participants may not deduct such
benefits.
For more information on retirement tiers, refer to the MI-1040
booklet.
2022 807, Page 10
Exemption Allowance
Michigan’s personal exemption allowance
is prorated for all nonresident participants
based on Michigan income to total
income.
If the entity claims a Tier 3 standard
deduction for a participant, remove all
income related to that participant from
the computations in lines 46 and 47
and do not include those participants in
line 50.
Line 47: Enter the participants’ total
income as determined using the
Participants’ Total Income Worksheet.
Line 48: Compute the percentage of
participants’ income that is attributable
to Michigan by dividing Michigan
income (line 46) by total income
(line 47). This figure may not exceed 100
percent.
Line 49: Multiply the percent of
Michigan income to total income as
determined on line 48 by $5,000 in 2022.
The result is the maximum exemption
Participants’ Total Income Worksheet
Column A refers to Distributive Income categories from Schedule K form(s). Columns B and C refer to lines
on the U.S. Form 1065 Schedule K and U.S. Form 1120S Schedule K. Column D is the list of amounts that
are added to arrive at participants’ total income that is reported on Form 807, line 47.
A
Distributive Income Categories
B
U.S. Form 1065
Schedule K
C
U.S. Form 1120S
Schedule K
D
Participants’
Distribute Income
Amounts
Ordinary income or (loss) from trade or business
activity
1 1
Net income or (loss) from rental real estate activity
2 2
Net income or (loss) from other rental activity
3c 3c
Portfolio income or (loss):
Interest income
5 4
Dividend income
6a 5a
Royalty income
7 6
Net short-term capital gain or (loss)
8 7
Net long-term capital gain or (loss)
9a 8a
Guaranteed payments
4a
Net gain or (loss) under section 1231
10 9
Other income or (loss)
11 10
TOTAL INCOME
Add all amounts in Column D and carry total to Form 807, line 47.
allowance a participant may be eligible to claim on this form.
Line 51: For each participant listed on Schedule A, Schedule of
Participants determine the lesser of:
• The amount on line 49, or
• That participant’s Distributed Share of Michigan Income
from Column 2 of the Schedule A, Schedule of Participants.
Enter on line 51 the sum of the result above for all participants.
The amount entered on line 51 may not exceed the product of
lines 49 and 50.
SEP, SIMPLE or Qualied Plan Subtractions
(PARTNERS ONLY)
Line 52: Figure the portions of Simplied Employee Pensions
(SEP), Savings Incentive Match Plan for Employees (SIMPLE),
or qualied plan deductions which are attributable to the
participants. Include a schedule showing calculations.
Signing Return/Correspondence
By signing Form 807, the signing partner or officer declares
that the filer has power of attorney from each participant to file
a composite return on the participant’s behalf. Treasury will
mail refund checks, assessments and all correspondence to the
filer at the address indicated on the return. The filer must agree
to be responsible for the payment of any additional tax, interest
and penalties as finally determined. Any issues that arise as a
result of the filed composite return will be resolved with the
filer. However, Treasury may find it necessary to contact the
participants.
When You Have Finished
Sign the return
A tax preparer must include the name, address, telephone
number of the firm he or she represents, and preparer tax
identification number or federal employer identification
number. Check the box to indicate if Treasury may discuss your
return with your preparer.
The Taxpayer Protection Act requires paid preparers to sign
the return and provide his or her preparer tax identification
number. Additional information on the Taxpayer Protection
Act is available at www.michigan.gov/taxes.
A paid preparer must not engage in any fraudulent tax activity.
Any concerns related to fraudulent activity of a paid preparer
may be reported to the Michigan Department of Treasury,
Fraud Unit, P.O. Box 30140, Lansing, MI 48909.
Forms
Michigan tax forms are available at www.michigan.gov/taxes.
