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Screen MISTCr - Michigan Credit for Taxes Paid to Other States (1040)

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Overview

Use this screen to complete Schedule 2, line 5, Credit for income tax paid to another state. UltraTax CS calculates Michigan's credit for tax paid to another state, using only wages that are double-taxed. For a Michigan resident, income from a business, partnership, rental, etc. that is taxed by another state or locality is not eligible for the credit for tax paid to other states; UltraTax CS instead treats this income as a Michigan subtraction. UltraTax CS automatically completes one copy of the Michigan Tax Paid to Other States Credit Worksheet for each unit of this input screen you complete and automatically prints copies of state returns if you are using UltraTax CS to file a nonresident return for which the credit for taxes paid to other states has been calculated.

State Income and Tax Information

Use this section to complete line 5 of Schedule 2. A statement attachment is printed with the return when claiming a credit for taxes paid to two or more other states. If you are processing a multiple-state return, process the nonresident state(s) first followed by the resident state. UltraTax/1040-MI transfers necessary information from the nonresident return(s) to your resident return to complete the credit for taxes paid to other states. Michigan has reciprocity agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin. UltraTax/1040-MI does not transfer information for states with reciprocity agreements with Michigan.
note
The non-Michigan cities wages and taxes paid to cities in reciprocal states
must be entered
 in the
Income taxed by Michigan
 and
Tax paid to other state / locality
 fields to claim a credit for taxes paid.
State postal code / Name of nonresident state or local government unit outside Michigan
If you are using UltraTax CS to file a multiple-state nonresident return, UltraTax/1040-MI automatically completes the
State postal code
 and
Name of nonresident state or local government unit outside Michigan
 fields for the resident return. If you are not using UltraTax CS to file a multiple-state nonresident return, enter the state postal code, and UltraTax/1040-MI completes the
Name of nonresident state or local government unit outside Michigan
 field. To claim the credit for tax paid to a local government or Canadian province, enter the locality / province in the
Name of nonresident state or local government unit outside Michigan
 field, and complete the
Force
 fields for total income, wages, and tax paid in this screen.
Total income taxed by other state or locality
If you are using UltraTax CS to complete a multiple-state nonresident return, UltraTax/1040-MI automatically completes the
Total income taxed by other state or locality
 field for your resident state return. Use the
Force
 column to enter the
Total income taxed by other state or locality
 amount if it is different from the calculated amount. If you are not using UltraTax CS to file a multiple-state return for which you would like to claim this credit, enter the total income subject to tax on the resident state, local, or provincial return in the
Force
 field.
Income taxed by Michigan and other state or locality
If you are using UltraTax CS to complete a multiple-state nonresident return, UltraTax/1040-MI automatically completes the
Income taxed by Michigan and other state or locality
 field for your resident state return. Use the
Force
 column to enter the
Income taxed by Michigan and other state or locality
 amount if it is different from the calculated amount. If you are not using UltraTax CS to file a multiple-state return for which you would like to claim this credit, enter the income subject to tax on the nonresident state, local, or provincial return in the
Force
 field.
Tax paid to other state or locality
If you are using UltraTax CS to complete a multiple-state nonresident return, UltraTax/1040-MI automatically completes the
Tax paid to other state or locality
 field for your resident state return. Use the
Force
 column to enter the
Tax paid to other state or locality
 amount if it is different from the calculated amount. If you are not using UltraTax CS to file a multiple-state return for which you would like to claim this credit, enter the tax paid from the nonresident state, local, or provincial return in the
Force
 field.
Local taxes paid to cities of reciprocal states
must be entered
 to claim this credit.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1040 Individual
  • State: Michigan

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