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As of , 36 states and one locality had enacted a PTET, including seven states in 2023, in four of which a PTET is effective retroactively to 2022 ? Indiana; Iowa (with its Department of Revenue on , requesting comments on needed guidance by June 7, 2023); Kentucky; and West Virginia ? while ...
This form is a supporting schedule used to report member information for a flow-through entity filing the Flow-through Entity Tax Annual Return (Form 5772). All taxpayers must complete this schedule and submit with their return.
States With Reciprocal Agreements StateReciprocal Agreement StatesKentuckyIllinois, Indiana, Michigan, Ohio, West Virginia, Wisconsin, VirginiaMarylandDistrict of Columbia, Pennsylvania, Virginia, West VirginiaMichiganWisconsin, Indiana, Kentucky, Illinois, Ohio, MinnesotaMinnesotaMichigan, North Dakota13 more rows ?
All Michigan FTE returns, including Form 5772, must be submitted electronically through Michigan Treasury Online (MTO). Michigan FTE tax returns submitted outside MTO will not be accepted.
Effective January 1, 2021, the Michigan flow-through entity (FTE) tax is levied on certain electing entities with business activity in Michigan. The Michigan FTE tax: is elected and levied on the Michigan portion of the positive business income tax base of a flow-through entity.
The elective PTE tax rate is tied to Michigan's individual tax rate, which is currently 4.25%. Individual owners of electing PTEs may claim a refundable credit for their allocated share of the tax as reported to the member by the electing PTE.
HB 5376 amends the Michigan Income Tax Act to impose a flow-through entity tax on electing flow-through entities with business activity in the state. Flow-through entities may make a three-year binding election to file a return and pay the flow-through entity tax on behalf of their members.
Michigan has a flat 4.25 percent individual income tax rate. There are also jurisdictions that collect local income taxes. Michigan has a 6.00 percent corporate income tax rate. Michigan has a 6.00 percent state sales tax rate and does not levy any local sales taxes.