Michigan Composite Individual Income Tax Return

Composite Individual Income Tax Return
807, 2023 MICHIGAN Composite Individual Income Tax Return
Reset Form
Michigan Department of Treasury, 807 (Rev. 08-23), Page 1 of 5

Issued under authority of Public Act 281 of 1967 as amended.

2023 MICHIGAN Composite Individual Income Tax Return
This return is due April 15, 2024. Type or print clearly in blue or black ink.

(MM-DD-YYYY)

Amended Return
(MM-DD-2023)

and ending:
- 2023
Filers whose tax year ends in 2023 should use this form. Do not use this form if the tax year ends in a year other than 2023.

Return is for calendar year 2023 or for tax year beginning:
1. Name of Partnership, S Corporation or Other Flow-Through Entity

2. Federal Employer Identification 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 filing.
5. Ordinary income or (loss) from U.S. Form 1065 or U.S. Form 1120S................................................

5.

00

6. Additions from line 37 .........................................................................................................................

6.

00

7. Subtotal. Add lines 5 and 6.................................................................................................................

7.

00

8. Subtractions from line 40....................................................................................................................

8.

00

9. Total income subject to apportionment. Subtract line 8 from line 7 ....................................................

9.

00

10. Apportionment percentage from MI-1040H (see instructions)............................................................

10.

%

11. Total Michigan apportioned income. Multiply line 9 by the percentage on line 10..............................

11.

00

12. Michigan allocated income or (loss) from line 45 ...............................................................................

12.

00

13. Flow-through entity tax non-electing entity income or (loss) adjustment (see instructions) ...............

13.

00

14. Total Michigan income. Add lines 11, 12 and 13.................................................................................

14.

00

15. Michigan income attributable to Michigan residents (see instructions for Schedule C)......................

15.

00

16. Michigan income attributable to nonparticipating members (see instructions for Schedule B) ..........

16.

00

17. Michigan income attributable to participants (see instructions for Schedule A)..................................

17.

00

20. Add lines 18 and 19............................................................................................................................

20.

00

21. Taxable income. Subtract line 20 from line 17....................................................................................

21.

00

22. Tax. Multiply line 21 by 4.05% (0.0405) ............................................................................................. 422.
23. Credit for participants’ allocated share of flow-through entity tax reported by filer from Schedule A
(see instructions) ............................................................................................................................... 423.

00

24. Michigan extension payments and estimated tax payments .............................................................. 424.

00

25. 2023 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.

00

27. Overpayment. If the total of lines 23, 24 and 25 is more than line 22, enter overpayment ..............

27.

00

28. Credit Forward. Amount of line 27 to apply to 2024 estimated tax ................................................... 428.

00

29. Subtract line 28 from line 27.............................................................................................. REFUND 429.

00

18. Exemption allowance from line 51......................................................

18.

00

19. SEP, SIMPLE or qualified plan deductions from line 54 .....................

19.

00

00

00

I declare under penalty of perjury that the information in this PREPARER CERTIFICATION. I declare under penalty of
return and attachments is true and complete to the best of my knowledge. I have obtained the required perjury that this return is based on all information of which I have
power of attorney from each of the members of this composite return and the entity will resolve the issue any knowledge.
of any tax liability.
Filer’s Signature
Date
Preparer’s PTIN, FEIN or SSN

TAXPAYER CERTIFICATION.

By checking this box, I authorize Treasury to discuss my return with my preparer.

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 Name (print or type)
Preparer’s Signature
Preparer’s Business Name, Address and Telephone Number

Continued on Page 2.

2023 807, Page 2 of 5
Name of Partnership, S Corporation or Other Flow-Through Entity

Federal Employer Identification Number

ADDITIONS
30. Net income or (loss) from rental real estate activities.........................................................................

30.

00

31. Net income or (loss) from other rental activities .................................................................................

31.

00

a. Interest income .............................................................................................................................. 32a.

00

b. Dividend income ............................................................................................................................ 32b.

00

c. Royalty income .............................................................................................................................. 32c.

00

d. Net short-term capital gain or (loss) (from U.S. Schedule K) ........................................................ 32d.

00

e. Net long-term capital gain or (loss) (from U.S. Schedule K).......................................................... 32e.

00

f. Other portfolio income ...................................................................................................................

32f.

00

33. Net gain or (loss) under Section 1231 ................................................................................................

33.

00

34. Other income from U.S. Schedule K ..................................................................................................
35. State or local taxes measured by income, including any allocated share of tax paid by an electing
flow-through entity (see instructions)..................................................................................................

34.

00

35.

00

36. Other miscellaneous additions (include a supporting statement) ......................................................

36.

00

37. Total additions. Add lines 30 through 36. Enter here and on line 6 ....................................................

37.

00

38. Income or (loss) from other partnerships, S corporations and fiduciaries ..........................................

38.

00

39. Other miscellaneous subtractions (include a supporting statement). Describe: ________________

39.

00

40. Total subtractions. Add lines 38 and 39. Enter here and on line 8 .....................................................

40.

00

a. Participating nonresidents - for services performed in Michigan ................................................... 41a.

00

b. Nonparticipating nonresidents - for services performed in Michigan............................................. 41b.

00

c. Michigan residents - total payments .............................................................................................. 41c.

00

32. Portfolio Income or (loss):

SUBTRACTIONS

MICHIGAN ALLOCATED INCOME OR (LOSS)
41. Guaranteed payments to all members allocated to Michigan:

42. Income attributable to other Michigan partnerships, S corporations or fiduciaries .............................

42.

00

43. Net Michigan capital gains or (losses) not subject to apportionment (from U.S. Schedule D) ...........

43.

00

44. Other Michigan allocated income or (loss) (see instructions).............................................................
45. Total Michigan allocated income or (loss).
Add lines 41a through 44. Enter here and on line 12 .........................................................................

44.

00

45.

00

46. Michigan income to participants from line 17 .....................................................................................

46.

00

47. Total income from Participants’ Total Income Worksheet, page 9 ......................................................
48. Percent of income attributable to Michigan.
Divide line 46 by line 47 (must be between 0 and 100%)...................................................................
49. Prorated exemption allowance per participant.
Multiply line 48 by $5,400 (exemption allowance). .............................................................................
50. Number of participants included in this return ....................................................................................
51. Total prorated exemption ....................................................................................................................

47.

00

48.

%

49.
50.
51.

00

52. SEP, SIMPLE or qualified plan deductions for participants (include a schedule) ...............................

52.

00

53. Percent of income attributable to Michigan from line 48.....................................................................
54. SEP, SIMPLE or qualified plan deductions attributable to Michigan.
Multiply line 52 by the percentage on line 53. Enter here and on line 19 ...........................................

53.

%

54.

00

EXEMPTION ALLOWANCE. See instructions for completing this section.

00

SEP, SIMPLE OR QUALIFIED PLAN DEDUCTIONS (PARTNERS ONLY)

2023 807, Page 3 of 5
Name of Partnership, S Corporation or Other Flow-Through Entity

Federal Employer Identification Number

SCHEDULE A: SCHEDULE OF PARTICIPANTS (Must have at least two participants, see instructions)
Column 1
Participant Information

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.

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

2023 807, Page 4 of 5
Name of Partnership, S Corporation or Other Flow-Through Entity

Federal Employer Identification Number

SCHEDULE B: SCHEDULE OF NONPARTICIPANTS
Column 1
Nonparticipant Information
Nonparticipant Name

Nonparticipant FEIN/SSN

Column 2
Distributive Share of Michigan Income*
and Michigan Guaranteed Payments

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.

2023 807, Page 5 of 5
Name of Partnership, S Corporation or Other Flow-Through Entity

Federal Employer Identification Number

SCHEDULE C: SCHEDULE OF MICHIGAN RESIDENTS
Column 1
Resident Information
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

Column 2
Distributive Share of Michigan Income and
Michigan Guaranteed Payments

2023 807, Page 6

Instructions for Form 807, Michigan Composite Individual Income Tax Return

New for 2023
Annual payments not made with the filed return can now be
remitted using the MI-1041V.

Definitions
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:

2023 807, Page 7

•
•
•
•
•

Is subject to Michigan individual income tax
Was not a Michigan resident (full-year or part-year)
Agrees to claim only one Michigan exemption
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 2023 composite return is for filers whose tax year ends in
2023. If the FTE’s tax year does not end in 2023, 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 2023 is due
April 15, 2024. The return for any period ending in 2024 will
be due April 15, 2025.
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.

2024 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 15, 2024; June 15,
2024; September 15, 2024; and January 15, 2025. 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.

2023 807, Page 8

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
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 23 or U.S. Form 1120S, line 22.
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 filing 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. If payment was not submitted with the return, make a
payment using Form MI-1041-V. 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

2023 807, Page 9

Additions
Lines 30 through 34: Enter income from lines
2, 3, 5, 6a, 7, 8, 9a, 10 and 11 of U.S. Form 1065
Schedule K or from lines 2, 3, 4, 5a, 6, 7, 8a, 9 and 10 of
U.S. Form 1120S Schedule K. Guaranteed payments, income
attributable to other Michigan fiduciaries 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 23 or U.S. Form 1120S, line 22. 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, 1957 (Tier 3), and reached the age of 67 on or before
December 31, 2023, 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.

2023 807, Page 10

Exemption Allowance

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.

Michigan’s personal exemption allowance
is prorated for all nonresident participants
based on Michigan income to total
D
A
B
C
Participants’
income.
U.S. Form 1065 U.S. Form 1120S Distribute
Income
Distributive Income Categories
Schedule K
Schedule K
Amounts
If the entity claims a Tier 3 standard
deduction for a participant, remove all
Ordinary income or (loss) from trade or business
1
1
activity
income related to that participant from
Net income or (loss) from rental real estate activity
2
2
the computations in lines 46 and 47
and do not include those participants in
Net income or (loss) from other rental activity
3c
3c
line 50.
Portfolio income or (loss):
Line 47: Enter the participants’ total
Interest income
5
4
income as determined using the
Dividend income
6a
5a
Participants’ Total Income Worksheet.
Royalty income
7
6
Line 48: Compute the percentage of
Net short-term capital gain or (loss)
8
7
participants’ income that is attributable
Net
long-term
capital
gain
or
(loss)
9a
8a
to Michigan by dividing Michigan
income (line 46) by total income
Guaranteed payments
4a
(line 47). This figure may not exceed 100
Net gain or (loss) under section 1231
10
9
percent.
Other income or (loss)
11
10
Line 49: Multiply the percent of
TOTAL INCOME
Michigan income to total income as
Add all amounts in Column D and carry total to Form 807, line 47.
determined on line 48 by $5,400 in 2023.
The result is the maximum exemption
When You Have Finished
allowance a participant may be eligible to claim on this form.
Sign the return
Line 51: For each participant listed on Schedule A, Schedule of
A tax preparer must include the name, address, telephone
Participants determine the lesser of:
number of the firm he or she represents, and preparer tax
• The amount on line 49, or
identification number or federal employer identification
number. Check the box to indicate if Treasury may discuss your
• That participant’s Distributed Share of Michigan Income
return with your preparer.
from Column 2 of the Schedule A, Schedule of Participants.
The Taxpayer Protection Act requires paid preparers to sign
Enter on line 51 the sum of the result above for all participants.
the return and provide his or her preparer tax identification
The amount entered on line 51 may not exceed the product of
number. Additional information on the Taxpayer Protection
lines 49 and 50.
Act is available at www.michigan.gov/taxes.
SEP, SIMPLE or Qualified Plan Subtractions
A paid preparer must not engage in any fraudulent tax activity.
(PARTNERS ONLY)
Any concerns related to fraudulent activity of a paid preparer
may be reported to the Michigan Department of Treasury,
Line 52: Figure the portions of Simplified Employee Pensions
Fraud Unit, P.O. Box 30140, Lansing, MI 48909.
(SEP), Savings Incentive Match Plan for Employees (SIMPLE),
or qualified plan deductions which are attributable to the
Forms
participants. Include a schedule showing calculations.
Michigan tax forms are available at www.michigan.gov/taxes.



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.