The following Michigan cities impose an individual income tax and accept the Common Form for their annual income tax return. Filing an annual return for these cities is supported in TaxSlayer Pro:
|Battle Creek||General Info||Forms|
|Benton Harbor||General Info||Forms|
|Big Rapids||General Info||Forms|
|East Lansing (2019)||General Info||Forms|
|Grand Rapids||General Info||Forms|
|Highland Park||General Info||Forms|
|Muskegon Heights||General Info||Forms|
Several other Michigan cities impose an individual income tax but use their own forms. Click the city for more information:
Income that is considered taxable, exemptions, deductions, tax rates, and other aspects of the tax are set by State of Michigan ordinance. Each city sets its own minimum income filing threshold. Most cities tax residents at a rate of 1% and nonresidents at a rate of 0.5%, but Grand Rapids, Highland Park, and Saginaw have different, higher rates. The filing deadline for city income tax returns is April 30. If the due date falls on a weekend or holiday, it is extended to the next business day.
TaxSlayer Pro does not support married taxpayers filing jointly on their federal return filing separate city returns. TaxSlayer Pro also does not support the city extension form. To get a particular city's extension form, click the city's Forms link above. As always, an extension to file is not an extension to pay any income tax due.
To access the Common Form in TaxSlayer Pro, from the Main Menu of the Michigan return select:
- MI Miscellaneous Forms
- MI City Taxes
- Common Form
Select New and select the desired city from the list. Next, select what type of return to create.
- Resident - The taxpayer was domiciled in the city for the entire year.
- Nonresident - The taxpayer was domiciled outside the city for the entire year but earned income in the city.
- Part-Year Resident - The taxpayer was domiciled in the city for part of the year. For married taxpayers filing a joint return, choose Part-Year Resident if either of them was a resident for part of the year.
Under the Personal Information menu you can indicate whether the taxpayer and/or spouse is entitled to the additional exemption for being deaf or disabled and also indicate the domicile address(es) during the year. Space for four addresses is provided.
Income from the Federal return is carried into the city return here. Adjust it as needed to exclude income not earned in the city.
Verify each income item for accuracy. City tax withholdings on a W-2 will carry to the city return if the city name is correctly indicated in the Locality box on the W-2. (When entering the W-2 on the federal return, if the state of MI is indicated in the state withholding section, the screen will display the correct spelling for the city names in the Locality box.)
Enter an amount for deductions as allowed by law.
- Qualified Plans Deduction - Individuals who are self-employed can deduct payments to a qualified retirement plan to the extent allowed under federal IRC § 404. Payments to an IRA can be deducted to the extent allowed under federal IRC § 219.
- Employee Business Expenses - Expenses that are "ordinary, necessary, reasonable, and unreimbursed" paid by a taxpayer in the course of performing services as an employee can be deducted. This includes:
- travel, meals, and lodging while away from home;
- transportation other than commuting to and from work;
- expenses of an outside salesperson while away from the employer's place of business;
- expenses incurred under an expense allowance arrangement where the reimbursement is included in compensation on the W-2.
- Moving Expenses - Moving expenses can be deducted to the extent allowed under federal IRC § 217. For tax years 2018 through 2025, this deduction is limited to active duty members of the armed forces. See IRS Publication 521.
- Alimony Paid - Alimony payments deducted on the federal return will automatically carry here.
- Renaissance Zone Deduction - Depending on the city, the Renaissance Zone Deduction may or may not be applicable and available.
Total Payments & Credits
Tax payments from W-2s will flow here if the city name is correctly indicated in the Locality box on the W-2. Also indicate under this menu payments from estimated taxes, extensions, and carryforwards from last year; credit for taxes paid by a partnership on behalf of the taxpayer; and credit for taxes paid to another city.
Total Interest and Penalty (CF-2210)
Penalty and interest may be assessed on the balance due if the estimated tax paid is less than 70% of the balance due this year or less than 70% of the balance due last year. No further penalty and interest will be assessed if the balance due is paid by the due date or extended due date, whichever applies.
Refund or Amount Due
If the return results in a refund, you will have the option to apply part or all of it to next year's return and, if available, to designate part or all of it as a donation to a city department or fund.
Information flowing from W-2s on the federal return can be adjusted as needed here. On nonresident and part-year resident returns, for each W-2 you will need to visit the Wage Allocation Menu and indicate the number of days the taxpayer worked for the employer, the number of vacation, holiday, or sick days, and the number of days worked inside the city. This information will be used to calculate the percentage of days worked in the city to determine the nonresident portion of wages that is excludible from income tax.