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Screen MIAdj - Michigan Income and Adjustments (1040)
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Overview
Use this screen to prepare Schedule 1.
Interest and dividend income is entered in federal B&D, K1, and K1T Screens. These screens may be accessed by using the links provided in MIAdj Screen. Interest and dividend data entered in the statement dialogs in these federal screens is utilized in the calculation of state income and adjustments. In those interest and dividend statements, you may indicate if data should be applied only to the federal or only to the state return. In addition use of the state postal code and In-State Source % indicates which state should react to the data entered in the federal statements.
- EnterFin theF/Sfield to indicate that the item is for the federal return only.
- EnterSin theF/Sfield and a non-MI postal code in theStatefield to indicate that the item transfers only to the state specified and is ignored for federal purposes.
- For Michigan source interest and dividends reportable on part-year and nonresident Michigan returns, you must enter MI in theStatefield in these federal statements. Further, for interest and dividends reportable as Michigan source for nonresident Michigan returns, you must also enter a percentage in theIn-State Source %field.
Interest from Municipal obligations and US Obligations from a pass-through entity and reportable in federal K1 and K1T Screens may be adjusted by new fields in federal K1-St Screen. If data is entered in these fields in K1-St Screen, the total of all K1 or K1T data for that income type is adjusted by the requested amount for that K1 or K1T. The state return uses the adjusted amount in its calculations. See federal K1-St Screen for additional information.
Additions
Use this section to complete Schedule 1, Page 1.
Tax payments made by partnership, S corporation, trust or estate
Enter other taxes on or measured by income, such as your share of city income tax paid by partnerships or S corporations, or your share of the taxes paid by an estate or trust. The amounts are included in Schedule 1, line 2.
MESP and MET nonqualified distributions
Enter the amount of nonqualified withdrawal from a Michigan Education Savings Program (MESP), the lesser of the refund received from a Michigan Education Trust (MET) or amount of the original MET contract deducted in a prior year and the amount paid by MET to repay a defaulted loan for financing a MET contract, which were not included in adjusted gross income. The amount is included in the
Other additions
statement dialog and printed with Schedule 1.Expenses from oil and gas activities subject to MI severance tax (Force)
UltraTax CS displays on the Michigan Oil and Gas Activity Worksheet the expenses from the activities identified as a qualifying oil and gas activity by selecting code
10
in the State Use Code
statement dialogs in federal C, Rent, and K1 Screens. The amount from the Michigan Oil and Gas Activities Worksheet is included with the additions on Schedule 1. Enter an amount here when filling out the non-calculating Form 5889 and use this field to "match" form 5889 if you do not use the calculated amount. Retirement and Senior Portfolio Income Subtractions
Use this section to complete Form 4884, Part 1. Distribution code 4 must used in federal 1099-R Screen box 7, if survivorship distributions are received, to print
X
on Form 4884, Part 2, column B.Deceased spouse: Name / Social security number
Enter the deceased spouse name, social security number, and also the year of birth for Form 4884, Page 1, when the surviving spouse received retirement or pension benefits on Form 1099-R with a distribution code 4. If you have more than one deceased spouse with benefits, use the oldest deceased spouses information for these fields.
Year of birth for Form 4884, line 7c
This field is used to complete Form 4884, Page 1, and to calculate the Senior Interest, Dividend and Capital Gain Subtraction Worksheet if the taxpayer is an unremarried surviving spouse under age 65, and the deceased spouse was age 65 or older at the time of death. Enter the deceased spouse's age at death.
Deceased spouse: Age at death
If the taxpayer is an unremarried surviving spouse under age 65, and the deceased spouse was age 65 or older at the time of death, enter the deceased spouse's age at death. This field is used for Schedule 1, lines 24 and 26, Form 4884, and Form MI-1040CR, line 5a.
Deceased spouse: SSA exempt benefits
Choose
T
from the fieldview if only the taxpayer received SSA Exempt surviving spouse benefits (from a deceased spouse) or choose S
from the fieldview if only the spouse received SSA Exempt surviving spouse benefits (from a deceased spouse). Choose B
from the fieldview if both the taxpayer and spouse received SSA Exempt surviving spouse benefits (from a deceased spouse).Qualifying distributions received through an irrevocable trust
Enter qualifying distributions in this statement dialog included on federal Form 1040, to calculate the pension subtraction on Form 4884. Returns receiving pension distributions via trusts cannot be electronically filed. Deceased spouse information must also be entered on MIAdj Screen.
The following information must be mailed with the return:
- A copy of Form 1099R received by the trust
- Proof that the decedent was eligible to receive the pension distributions prior to death (or the surviving spouse has reached the age of 59 ½), the distribution is qualified and from a qualified plan
- If there are any other beneficiaries in the trust, and, if there are other beneficiaries, what portion of the pension distribution going to the trust is distributed to the taxpayer.
Qualifying distributions from 401K with employer contributions
Enter the name of the payee, distribution total amount, the total employee and employer contributions made to the 401K, and the amount of employer contributions (both direct contributions by the employer and the mandatory employee contributions) to receive the matching contributions of the employer in the statement dialog. UltraTax CS includes the apportioned amount of the distribution related to the employer contributions in the calculation of the allowed private pension subtraction on the Michigan Pension Deduction Worksheet for use on Form 4884, Section C.
Dividend, interest, and capital gains deduction for seniors (Force)
If this field is blank, UltraTax CS automatically calculates Schedule 1, dividend, interest, and capital gains deduction for senior citizens, if at least one taxpayer is age 67 or older. UltraTax CS limits the deduction based on filing statuses. Additionally, UltraTax CS automatically reduces the dividend, interest, and capital gains deduction by any pension subtraction amount from Schedule 1, line 11. If you do not want to use the calculated amount, force the dividend, interest, and capital gains deduction by making an entry here.
Other Subtractions
Use this section to complete Schedule 1, Page 2.
Resident tribal member income
Enter an amount to adjust the calculated amount for the deduction of Resident Tribal Member Income on Schedule 1, line 22 in the
Miscellaneous subtractions
statement dialog.Gross income from oil and gas activities subject to MI severance tax (Force)
UltraTax CS displays on the Michigan Oil and Gas Activity Worksheet the gross income from the activities identified as a qualifying oil and gas activity by selecting code
10
in the State Use Code
statement dialogs in federal C, Rent, and K1 Screens. The amount from the Michigan Oil and Gas Activities Worksheet is included with miscellaneous subtractions on Schedule 1. Enter an amount here when filling out the non-calculating Form 5889 and use this field to "match" form 5889 if you do not use the calculated amount.