PDF document

- 1 -

            MI-1041 

Fiduciary Income Tax Return 

   E-filing your return is easy, fast, and secure! 

    Tax preparers who complete 11 or more fiduciary   
   tax returns are required to e-file all eligible returns   
   supported by their software.      

    Visit www.MIfastfile.org for more information 
   on e-file services. 

   WWW.MIFASTFILE.ORG 

UNCLAIMED PROPERTY. The Michigan Department of Treasury is holding  
millions of dollars in abandoned and unclaimed property belonging to Michigan residents. 
In the past three years nearly $387 million has been returned to rightful owners.   
To check if Treasury is holding funds for you or your family visit 
www.michigan.gov/unclaimedproperty. 

                     FILING DUE DATE:                         

                     APRIL 18, 2023 
(OR THE 15TH DAY OF THE FOURTH MONTH AFTER THE CLOSE OF YOUR TAX YEAR) 

            WWW.MICHIGAN.GOV/TAXES                                                                          MICHIGAN 2022 
   This booklet is intended as a guide to help complete your return. It does not take the place of the law.

- 2 -

GENERAL INFORMATION
New for 2022 Choose e-file Instead of Paper Returns
Michigan Historic Preservation Tax Credit for Plans E-filing your Michigan fiduciary return is easy, fast, and
Approved after December 31, 2020. If you received a secure. When e-filing federal and Michigan returns together,
certificate of completed rehabilitation from the State Historic much of the same data is used, so information is entered only
Preservation Office, see the instructions for line 15 of the once, lessening the possibility of error. Tax preparers who
MI-1041 and Form 5803. complete 11 or more fiduciary tax returns are required to
e-file all eligible returns. Visit www.MIfastfile.org for more
Tax Assistance information on e-file services. When e-filing, do not mail a
Internet Options paper copy of your return.
Current year forms are available at www.michigan.gov/iit Where to Mail the Return
Telephone Options Mail returns without payments to:
You may also call 517-636-4486 to have current year forms Michigan Department of Treasury
mailed to you, or if you have questions, to speak to a customer P.O. Box 30058
service representative. Lansing, MI 48909
Assistance is available using TTY through the Michigan Mail returns with payments to:
Relay Service by calling 711. Michigan Department of Treasury
Department 781041
Who Must File P.O. Box 78000
You must file a Michigan Fiduciary Income Tax Return Detroit, MI 48278-1041
(Form MI-1041) and pay the tax due if you are the fiduciary To ensure accurate processing of the return, send one
for an estate or trust that was required to file a U.S. Form 1041 check for each return. Make the check payable to “State
or 990-T or that had income taxable to Michigan that was not of Michigan.” Enter the FEIN of the estate or trust and
taxable on the U.S. Form 1041. If no tax is due, you must file an
“
informational MI-1041. The only exceptions are: 2022 MI-1041” on the front of the check.
1. Tax-exempt trusts unless the trust has unrelated business Penalty and Interest
income attributable to Michigan. If the fiduciary payment is late, the Michigan Department of
Note: Estates or trusts with a charitable purpose or charitable Treasury (Treasury) will add a penalty of 5 percent of the tax due.
beneficiaries should contact the Michigan Department of After the second month, penalty will increase by an additional
Attorney General, Charitable Trust Section at 517-335-7571 5 percent per month, or fraction thereof, up to a maximum of
regarding filing requirements. 25 percent of the tax due. If the fiduciary payment is late, add
penalty and interest to the amount due. For the latest interest rates
2. Common trust funds. The trustee must notify each
visit,
beneficiary of their portion of Michigan income from the fund www.michigan.gov/taxes.
and of the gains and/or losses available to each under Section Capital Gains/Losses
271 of the Michigan Income Tax Act. Adjustments of Capital Gains and Losses (Form MI-1041D) must
3. Nonresident estate or trust with income from Michigan be used for the following:
sources less than the federal exemption deduction. The • Capital gains election under Section 271 for property
deductions are $600 for estates, $300 for trusts currently acquired before October 1, 1967;
distributing all income, $4,300 for qualified disability trust and
$100 for all other trusts. See Fiduciary Nonresident Schedule • Sale or exchange of U.S. obligations which cannot be taxed
(MI-1041 Schedule NR) instructions for more information. by Michigan; or
• Sale or exchange of property subject to allocation or
4. A grantor trust. When the grantor, or another person, is apportionment provisions.
treated as the owner of the trust’s assets (Internal Revenue
Code (IRC) sections 671 through 679), do not file an MI-1041. MI-1041, Schedule 4 must be completed if a capital gain/loss is
Instead, the owner must report the trust’s income, deductions, distributed to beneficiaries and MI-1041D is filed.
and credits on the owner’s Michigan Individual Income Tax Excess Business Loss Limitation
Return (Form MI-1040). Estates or trusts with a federal excess business loss limitation
5. Michigan cannot impose an income tax on income must complete Michigan Excess Business Loss (Form MI-461).
accumulated by a trust that became irrevocable by the death of Refer to instructions on Form MI-461 for further information
the settlor (while a Michigan resident) when all of the following on adjustments to Michigan income.
conditions are met:
Tax Credits an Estate or Trust Can Claim
• The trustee is not a Michigan resident.
An estate or trust may be able to claim credits for each of the
• The assets of the trust are neither held, located, nor
following:
administered in Michigan.
• Income tax imposed by government units outside Michigan
• The beneficiaries are all nonresidents.
on income also taxed by Michigan.
When to File • Michigan Historic Preservation Tax Credit (refundable or
Fiduciary returns are due on or before April 18, 2023, or on the nonrefundable). Taxpayers eligible for this credit receive a
15th day of the fourth month after the close of the tax year. If certificate from the State Historic Preservation Office
a refund is due, a return must be filed within four years of the indicating their eligibility. To claim this credit see the
due date to obtain the refund. Keep a copy of the return and all Michigan Historic Preservation Tax Credit (Form 3581) or
supporting schedules for six years. Michigan Historic Preservation Tax Credit for Plans
Approved after December 31, 2020 (Form 5803). For
information regarding certification, visit www.michigan.
gov/shpo.

- 3 -

Resident and Nonresident Estates or Trusts If estimated payments are necessary, use the Estimated
If a decedent was domiciled in Michigan at the time of death, Income Tax Voucher for Fiduciary and Composite Filers
the estate is a resident estate. (Form MI-1041ES). Filing instructions are with the form.
If a decedent was not domiciled in Michigan at the time of Do Not Use MI-1040ES to make estimated payments for an
death, the estate is a nonresident estate. A trust created by the estate or trust.
nonresident decedent’s will is a nonresident trust. Estimated payments are not required from a decedent’s estate
If a trust was created by a grantor domiciled in Michigan at for any tax year ending before the date that is 2 years after the
the time the trust becomes irrevocable, the trust is a resident decedent’s death.
trust. If the grantor was not domiciled in Michigan at the time If a fiduciary fails to make required estimated payments, pays
the trust became irrevocable, the trust is anonresident trust. late, or underpays, Treasury may charge penalty and interest.
Amended Returns Penalty is 25 percent of the tax due (with a minimum of $25)
To amend MI-1041, check the box at the top of the MI-1041 for failing to file estimated payments, or 10 percent (with a
and explain the reason for amending. Include a copy of the minimum of $10) for underpaying estimated payments. Interest
amended U.S. Form 1041 with all supporting schedules. is 1 percent above the prime rate and is computed monthly. The
U.S. Form 1041 changes. Treasury must be notified of any rate is adjusted on July 1 and January 1.
changes to the estate’s or trust’s U.S. Form 1041 if the items A financial institution that submits estimated payments through
changed affect the Michigan liability. File an amended return the Federal Tax Deposit System on magnetic tape and acts
within 120 days of the change and include payment of the tax as a fiduciary for 200 or more trusts must submit Michigan
due. If there was an overpayment of tax, file an amended estimated payments on magnetic tape. An institution acting as
return to request a refund. fiduciary for more than 49 and less than 200 trusts may make
an irrevocable agreement to file magnetically.
Extensions
An extension of time to file may be requested by sending Farmland Preservation Tax Credits
Treasury payment of the estimated tax liability with a copy There is no provision for a farmland preservation tax credit on
of the federal extension. Treasury will extend the due date to the fiduciary return. If the fiduciary is claiming this credit, use
the new federal due date. If a federal extension was not filed, the Michigan Farmland Preservation Tax Credit (Form 4594).
file an Application for Extension of Time to File Michigan Tax Bankruptcy Estates
Returns (Form 4) with the payment and Treasury will grant a Every trustee (or debtor-in-possession) for an individual’s
5 1/2 month extension for fiduciary returns. Treasury does not bankruptcy estate under Chapter 7 or 11, of the U.S. Code
send a notice of approval. Title 11, who must file a U.S. Form 1041 must also file
An extension of time to file is not an extension of time to an MI-1041. Use the MI-1041 only as a transmittal for the
pay. If the tax due is underestimated and the payment made MI-1040. Write “Attachment to MI-1041: Do not detach”
with the extension request is insufficient, interest is due on in the top margin of the MI-1040. Include the MI-1040
the unpaid amount. Interest is computed from April 18 (or behind the MI-1041. Complete only the identification area of
the due date of the return) to the date the tax is paid. Interest MI-1041. Enter the name of the debtor on line 2 (e.g., “John
is 1 percent above prime rate and is adjusted on July 1 and Smith, Public Bankruptcy Estate”). Enter the name of the
January 1. trustee on line 4a and their title on line 4b (e.g., “Allen Snow,
Treasury may charge a penalty of 10 percent or more if the Trustee”). Enter the trustee’s contact information on lines
balance due is not paid with the extension request. 4c through 4f. On MI-1041, line 25, enter the amount from
When MI-1041 is filed, include the amount of tax that was paid MI-1040, line 34. If applicable, enter on MI-1041, line 28, the
with the extension request on line 21. Include a copy of the amount from MI-1040, line 37. Copies of the U.S. Forms 1040,
federal or state extension. 1041, and all supporting schedules must be included with your
Closing an Estate Michigan return.
Before closing an estate, all taxes due must be paid on the Composite Filer Participants
liability of the estate and of the decedent. You may then request Estates or trusts that participate on the Michigan Composite
a tax clearance letter to close the estate by writing to: Individual Income Tax Return (Form 807) may be entitled to a
Michigan Department of Treasury credit on their MI-1041 for their share of the Michigan income
P.O. Box 30058 tax liability paid on Form 807. Enter the amount of Michigan
Lansing, MI 48909 income tax paid on your behalf on MI-1041, line 20 and write
“Composite Filing” next to line 20.
Estimated Tax Payments
In general, a fiduciary for an estate or trust must file quarterly
estimated payments if the estate or trust is expected to owe
more than $500 with the 2023 return after crediting any other
refundable or nonrefundable credits, and amounts you paid
through withholding.
If the estate or trust owes more than $500, estimated payments
may not have to be made if the estate or trust expects the 2023
withholding to be at least:
• 90 percent of the total tax for 2023,
• 100 percent of the total tax shown on the 2022 return, or
• 110 percent of the total 2022 tax if the estate’s or trust’s
taxable income for 2022 is more than $150,000. To figure
the estate’s or trust’s taxable income, see the instructions
for line 23 of the U.S. Form 1041. Total tax is the amount
on the 2022 MI-1041, line 13.
3

- 4 -

LINE-BY-LINE INSTRUCTIONS
Michigan’s fiduciary law is very similar to federal law. These Do not include taxes paid on income subtracted on lines 35
instructions include only those points of Michigan laws and through 38 of MI-1041 (e.g., rental or business income from
procedures that differ from federal laws and procedures. another state). If credit is claimed for a Canadian provincial
If a federal short-year return must be filed, a Michigan short- tax, file a Resident Credit for Tax Imposed by a Canadian
year return must also be filed. Before preparing the MI-1041, Province (Michigan Form 777). Include copies of the
complete the U.S. Form 1041 and all supporting schedules. appropriate Canadian federal T-3 fiduciary tax return, Foreign
• All estate and trust filers must complete page 1. Tax Credit (U.S. Form 1116) and U.S. Form 1041. The credit
is limited to the part of the Canadian provincial tax not used as
• Resident estate and trust filers must complete Schedule 1 if
a credit on the U.S. Form 1041. The credit is not available for tax
applicable.
paid to other foreign countries.
• Complete Schedule 2 if income is distributed Line 14a: Enter the total income tax paid to other government
• Complete Schedule 3 if income is distributed and there are units on income also taxed by Michigan. Include a schedule if
adjustments on Schedule 1. tax was paid to more than one source.
• If the resident estate or trust distributed a capital gain, Line 14b: Calculate the maximum allowable credit as follows:
filers must also complete Schedule 4 and MI-1041D. 1. Divide out-of-state income subject to tax by both states by
See “Capital Gains/Losses” on page 2. total income subject to Michigan tax.
Nonresident estate or trust filers may omit lines 8 through 11 on 2. Multiply the amount of tax shown on line 13 by the result.
page 1, Schedule 1 and Schedule 3. Nonresident estates or trusts 3. Enter the allowable credit, which is the smaller of:
must complete MI-1041D (if applicable), Schedule 2, MI-1041 • The calculation or
Schedule NR if any income is distributed, and Schedule 4 if the
• The tax imposed by another government.
estates or trusts distributed any capital gains or losses.
Line 15: Michigan Historic Preservation Tax Credit
Include a copy of the U.S. Form 1041 and all supporting Line 15a: If you are including Form 3581, enter the amount
schedules with the Michigan return. from line 9. If you are including Form 5803, enter the amount
Line numbers not listed are explained on the form. from line 7.
PART 1: Name and Identification Line 15b: If you are including Form 3581, enter the amount
from line 14. If you are including Form 5803, enter the amount
Lines 1 through 7: Complete all items. Enter the full
nine-digit Federal Employer Identification Number (FEIN). from line 12.
Enter a mailing address that Treasury can use to request more Line 18: Enter amount from your 2022 Form 3581, line 16a or
information or to issue a refund. 16b.
PART 2: Income and Adjustments Line 19: For resident estates and trusts, take the allocated share
of taxes reported to the estate or trust by a flow-through entity
Line 8: Enter federal taxable income of the estate or trust whose tax year ends in 2022 and that elected to pay tax under
from U.S. Form 1041, line 23, or U.S. Form 990-T, Part I, line 11. the Michigan flow-through entity tax and multiply that by the
Line 9: Enter federal taxable income of Electing Small ratio of the flow-through entity business income tax base that
Business Trusts from the ESBT Tax Worksheet attached to is retained by the estate or trust to the total flow-through entity
the U.S. Form 1041. Include a copy of the worksheet with the business income tax base included in distributable net income.
Michigan return. For nonresident estates and trusts, take 95.75% of the allocated
Line 10: A fiduciary for a resident estate or trust should share of taxes reported to the estate or trust by a flow-through
complete Schedule 1 if there are Michigan adjustments to entity and multiply that amount by the ratio of the flow-through
federal taxable income. If no income was distributed, enter the entity business income tax base that is retained by the estate or
amount from line 40 on line 10. If any income was distributed, trust to the total flow-through entity business income tax base
complete Schedules 2 and 3. Enter the amount from line 42, included in distributable net income.
column C, on line 10. Include a copy of the Schedule K-1 with its notes, or other
Line 11: Capital Gain/Loss Adjustments for Resident supporting documentation received from the FTE, to support the
Estates or Trusts. Enter the amount from MI-1041D, line 21, if credit claimed on this line.
any (see “Capital Gains/Losses” on page 2). An electing flow-through entity that files a composite return
Line 13: Tax. If line 12 is a negative number, enter “0” on on behalf of an estate or trust, should claim the credit on the
line 13. composite return (Form 807). Do not claim that credit here.
Line 20: State Income Tax Withheld. Use line 20 to claim a
PART 3: Credits and Payments credit for any Michigan income tax withheld by:
Line 14: Credit for Income Tax Paid to Another State. • An employer on wages and salaries of a decedent received
Include the amount of income tax paid to: by the decedent’s estate
• A nonreciprocal state • A payer of certain gambling winnings (for example, state
• A local government unit outside Michigan, including tax lottery winnings)
paid to local units located in reciprocal states • A payer of distributions from pensions, annuities,
• The District of Columbia retirement or profit-sharing plans, IRAs, insurance
• A Canadian province. contracts, etc., received by a decedent’s estate or trust.
Include only income tax paid to another state on income • Michigan income tax paid on your behalf on a 2022
earned by a resident estate or trust and taxed by Michigan. Form 807, see “Composite Filer Participants” on page 3.
Include a copy of the return filed with the other government Include a 2022 Michigan Fiduciary Withholding Tax Schedule
unit with the MI-1041. (Form MI-1041 Schedule W) and all supporting documents.
4

- 5 -

Line 21: Payments. Enter the total estimated tax paid with the Line 33: Enter any adjustments not taken into account on lines
2022 MI-1041ES and any Michigan tax paid with an extension 29 through 32 as a positive number including the following
request. (provide an additional schedule if necessary):
Note: Michigan does not allow the estate’s or trust’s estimated • Gross expenses from the production of oil and gas or
tax payments and/or withholding payments to be transferred to extraction of nonferrous metallic minerals subject to
beneficiaries. Michigan severance tax to the extent deducted from
Line 22: Enter the amount of the 2021 overpayment applied to federal taxable income
this year’s tax from 2021 MI-1041, line 26. • Losses from a business or property located in another
Line 23: This line is for amended returns only. Enter the state. Include a schedule or statement showing this
refund and/or credit forward amount received on the original activity and the location. For assistance see “Michigan
return as a negative number. Enter the amount paid with the Business, Rental & Royalty Activity Worksheet”
original return as a positive number or “0” if applicable. Do not available on Treasury’s website If there are business
include any interest or penalty paid with the original return. losses attributable to both Michigan and another state,
they must be apportioned. Include a Michigan Schedule of
PART 4: Balance Due or Refund Apportionment (MI-1040H).
Line 25: Tax Due. If line 24 is less than line 17, enter the • Federal loss from MI-4797, line 17
difference. This is the tax owed with the return. The return • Michigan gain from MI-4797, line 17
must be filed even if the balance due is less than $1 and no • Loss from MI-461, line 9, column F
payment is required. If e-filing the return with a tax due, make • Federal net operating loss (NOL) deduction that is included
a payment using the Form MI-1041-V. on line 8.
If penalty and interest are due for late payment of tax, enter
SUBTRACTIONS
these amounts on the appropriate lines. See “Penalty and
Interest” on page 2. Add penalty and interest to the tax due and Line 35: Enter the income from U.S. government obligations
enter the total. (e.g., U.S. Series E Bonds). This income may be subtracted
even if it comes through a partnership, S corporation, or
If the estate or trust owes more than $500 and was required another estate or trust. Include a schedule showing the source
to file estimated payments, penalty and interest may be of the income from U.S. obligations (Treasury Bonds, Series E
due for underpayment, late payment, or failing to pay bonds, etc.) and the amount of income from each source.
estimated payments. Use Underpayment of Estimated Income
Line 36: Enter income attributable to another state. If there
Tax (Form MI-2210) to compute interest and penalty. If is business income sourced to Michigan and another state, the
MI-2210 is filed, enter the interest and penalty amount on the income must be apportioned using the MI-1040H. Enter the
line provided. Obtain complete instructions for MI-2210 from amount from MI-1040H, line 12. Filers with more than one
the resources listed on page 2. form MI-1040H should combine the amounts from line 12 and
Line 28: Refund. Subtract line 27 from line 26. This is the enter here. Include a schedule or statement showing the activity
refund. The State does not refund amounts less than $1. and the location. For assistance, see “Michigan Business,
SCHEDULE 1: Net Michigan Adjustment for Rental & Royalty Activity Worksheet” available on Treasury’s
Resident Estates or Trusts website. Income reported on the MI-4797 and carried to the
MI-1041D is business income and subject to apportionment, if
ADDITIONS applicable. The following are examples of income attributed to
Line 29: Enter gross interest and dividend income another state:
from obligations or securities of states and their political • Net rents and royalties from real and personal property
subdivisions other than Michigan. Include this interest income located or used in other states.
from partnerships, S corporations, and other estates and trusts. • Business income included in taxable income that was
Line 30: Enter taxes deducted on U.S. Form 1041, line 11, earned solely in other states. (Losses from an activity in
which were imposed on or measured by income, such as state another state that have reduced federal taxable income
or city income taxes. must be entered as a positive figure on line 33.)
If you are a direct or indirect member of a flow-through entity Salaries, wages, and other compensation for personal services
that elected to pay the Michigan flow-through entity tax, add are not business income. Resident estates cannot subtract
your share of those taxes paid and reported to you by that salaries and wages earned by the decedent in another state.
flow-through entity and deducted on the flow-through entity’s However, the estate may be entitled to a tax credit for tax
federal tax return. If you apportioned this flow-through income imposed by another state. See line 14 instructions on page 4.
using an MI-1040H, the apportionment percentage from
line 8 should be applied to the tax reported by the flow-through Note: Capital gains from the sale of real or personal property
entity. Include a copy of the Schedule K-1 with the notes, other or located in other states at the time of disposal are adjusted on
supporting documentation received from the flow-through MI-1041D and factored into line 11.
entity, to support your addition. Line 37: Enter expenses related to obligations of other
An electing flow-through entity that files a composite return states not deducted on U.S. Form 1041 or not allowed as a
on your behalf should report your addition on that composite deduction by IRC Section 265. Also enter interest expense on
return (Form 807). Do not report the addition here. indebtedness incurred in carrying the obligations and related
Line 32: Enter expenses and interest incurred in production expenses that were not used on U.S. Form 1041.
of income from obligations of the U.S. government on Line 38: Enter any adjustments not taken into account
U.S. Form 1041. Enter on this line any interest expense on on lines 35 through 37 as a positive number including the
indebtedness incurred in carrying the obligations and any following (provide an additional schedule if necessary):
related expenses that were deducted in arriving at federal • Gross income subject to Michigan severance tax from
taxable income. the Michigan production of oil and gas or extraction of
nonferrous metallic minerals to the extent included in
federal taxable income
5

- 6 -

Example for Completing Schedule 3 
For this example, the fiduciary has reported $5,000 on MI-1041 Schedule 1, line 40. 
                                                           A                                                                          B                         C 
                                            Federal Distributable Net Income 
                                                                                                                                                      Allocation of Net 
                                                                                                                                                    Michigan Adjustment 
       Beneficiary               Type of Income                                                                                                     (Multiply amount on 
     Identification  from     (Dividend, Interest,     Location                                                            Percentage of Amount  line 40 by percentage 
       Schedule 2                Rent, etc.)           (City, State)                                         Amount               in Column A            in Column B) 
            a.                                         Lansing, MI                                           $2,420               9.4642%                     $473 
                                 Interest and Rent

            b.                                         Lansing, MI                                           20,550               80.3676%                    4,018 
                                 Interest and Rent

            c.                                         Lansing, MI                                             600                2.3465%                       117 
                                 Interest and Rent

                                                                                                               2,000              7.8217%                       391 
41. Fiduciary’s Share .................................................................................. 
                                                                                                            $25,570                   100%                 $5,000 
42. Total. Include amounts from Form 5680 (if applicable)  ........................ 
  •   Federal gain from MI-4797, line 17                                                                 federal distributable net income bears to the total federal 
  •   Michigan loss from MI-4797, line 17                                                                distributable net income with the remaining portion going to 
                                                                                                         the fiduciary. 
  •   Income from MI-461, line 9, column F 
                                                                                                         If the estate or trust has no distributable net income for the 
  •   Michigan NOL                                                                                       taxable year, the net Michigan adjustment will be allocated in 
  •   If you are a  direct  or indirect  member of a  flow-through                                       the proportion that each beneficiary’s share of the distributed 
      entity that elected to pay the Michigan flow-through                                               estate or trust income for the year bears to the total estate 
      entity  tax,  subtract  your  share  of  a  refund  of  that  tax                                  or trust income with the remaining portion going to the 
      received by that flow-through entity and included in your                                          fiduciary. (Distributed income includes amounts required to be 
      distributive share. If you apportioned this flow-through                                           distributed currently under local law or the terms of the estate 
      income   using  an  MI-1040H,  the  apportionment  percentage                                      or trust instrument, and any other amounts distributed.)  
      from  line      8should be applied to the refund reported by the                                   Use  Schedule  3  to  compute  this  allocation.  See  Example  for 
                                                                                                         Completing Schedule 3 above. These percentages may not be 
      flow-through entity. Include a copy of the               Schedule 
                                                                                                         the same as the distribution percentages listed in the estate or 
      K-1   with  its  notes,  or  other  supporting  documentation                                      trust instrument. 
      received  from  the  flow-through  entity,  on  which  the  
                                                                                                         Complete  column  A  for  all  beneficiaries  before  completing  B,  
      flow-through entity reported your allocated share  of the                                          then  C.  If  you  have  more  than  4  beneficiaries,  continue  those 
      refund.                                                                                            entries on the 2022  Michigan Fiduciary Income Tax Information 
      An electing flow-through  entity that  files a  composite                                          Continuation Schedule (Form 5680).  
      return on your behalf should report your subtraction on that                                       Identify each beneficiary using the lower-case beneficiary 
      composite return (Form 807). Do not report the subtraction                                         identification letter from Schedule 2. 
      here.                                                                                              Column   A: Enter  the  distributions  reported  to  each 
Note:  Retirement or pension benefits may not be subtracted.                                             beneficiary on his or her U.S.   Schedule K-1 in the columns 
Line   40:  Subtract  line  39  from  line  34.  If  no  income                                          provided.  Indicate  the  type  of  income  such  as  dividends, 
was  distributed,  enter  the  amount  from  line  40  on  line  10.                                     interest, rents, etc. and include the location of the activity and 
Otherwise, complete Schedules 2 and 3.                                                                   amount for each. If the income has multiple activity locations 
                                                                                                         enter “various” as the location and provide support detailing the 
SCHEDULE      2: Beneficiary Identification                                                              type, locations, and amount, for each. For assistance, you may 
Note:  Schedule 2 must be completed if any income is                                                     refer  to  the  “Michigan  Business,  Rental  &  Royalty  Activity 
distributed.                                                                                             Worksheet.” Enter the fiduciary’s share on line 42. The total on 
                                                                                                         line  43  should  equal  the  distributable  net  income  reported  on 
Enter  in  the  appropriate  column  the  name,  residency  status,                                      U.S. Form 1041, Schedule B. 
address,  and  Social  Security  number  or  Federal  Employer 
                                                                                                         Column  B:  Divide each amount in column A by the total 
Identification Number (FEIN) of each beneficiary of the estate                                                                                                   
                                                                                                         amount on line 43 and enter the percent in column B.
or trust for both residents and nonresidents. Identify residents 
with an “R” and nonresidents with “NR.”  When completing                                                 Column  C:  Multiply  the  amount  on  Schedule  1,  line  40,  by 
the  rest  of  this  form,  use  the  lower-case  letter  (a,  b,  c,  etc.)                             the percentage in column B. Enter the result in column C for 
to the left of each name to refer to a beneficiary listed in                                             each beneficiary and the fiduciary. Carry the fiduciary’s share 
Schedule  2.  If  you  have  more  than  4  beneficiaries,  continue                                     (line 42) to Part 2, line 10. The total on line 43C must equal the 
those  entries on the  2022      Michigan Fiduciary Income  Tax                                          amount on Schedule 1, line 40. 
Information Continuation Schedule (Form 5680).                                                           SCHEDULE 4 - Capital Gain or (Loss) Distributed 
SCHEDULE 3: Allocation of Net Michigan                                                                   to Beneficiaries When Form MI-1041D Is Filed 
Adjustment for Resident Estates or Trusts                                                                Complete Schedule 4 if capital gains or losses have been 
If  income  is  distributed,  the  net  Michigan  adjustment  for                                        distributed to beneficiaries and MI-1041D was completed. 
resident  estates  or  trusts  from  MI-1041,  line  40,  must  be                                       Identify each beneficiary using the lower-case beneficiary 
allocated in the proportion that each beneficiary’s share of                                             identification letter from Schedule 2. 
    6

- 7 -

Column A: (Federal) Enter each beneficiary’s share of
capital gain/loss as reported on U.S. Form 1041 Schedule K-1. OTHER INFORMATION
Column B: (Michigan) Enter each beneficiary’s share of For the Fiduciary
capital gain/loss as recomputed on Form MI-1041D. The fiduciary must provide a U.S. Schedule K-1 to each
Line 44: Enter the total of all beneficiaries’ shares in beneficiary. The fiduciary must also provide notice of
the federal and Michigan columns. This must equal the Michigan adjustments to each beneficiary. The notice may be
noted on a copy of the U.S. Schedule K-1 or a separate letter
beneficiaries’ amounts reported on U.S. Form 1041 Schedule D
Part III, column (1) or Form MI-1041D, line 15, column C. to each beneficiary. If a letter is used, it must include the
name and federal identification number of the estate or trust.
Signatures and Declarations Each beneficiary must be advised of his or her share of the
following:
The fiduciary or the officer representing the fiduciary must
sign the return. Before mailing the return: • Michigan adjustments from resident estates or trusts.
• Verify that all forms are completed using the correct tax • Michigan income from nonresident estates or trusts.
year. • Capital gains/losses available for adjustment under Section
• Include all required Michigan attachments. 271 of the Michigan Income Tax Act.
• The corresponding U.S. Form 1041 and all supporting For the Beneficiary
schedules must also be included.
Both resident and nonresident beneficiaries may have an
When You Have Finished obligation to file a Michigan income tax return. Refer to the
 Sign the return MI-1040 instruction booklet to determine individual filing
A tax preparer must include the name, address, telephone requirements.
number of the firm he or she represents, and preparer tax If an MI-1040 is required, include copies of the following:
identification number or federal employer identification • U.S. Schedule K-1 including footnotes and statements.
number. Check the box to indicate if Treasury may discuss
• The letter received from the fiduciary notifying the
your return with your preparer.
beneficiary of Michigan adjustments or Michigan income.
The Taxpayer Protection Act requires paid preparers to sign
the return and provide his or her preparer tax identification • MI-1040D, if the beneficiary is eligible to adjust gains and
number. Additional information on the Taxpayer Protection losses under Section 271 of the Michigan Income Tax Act.
Act is available at www.michigan.gov/taxes. Note: Excess deductions available upon termination of
A paid preparer must not engage in any fraudulent tax an estate or trust may be passed on to the beneficiaries.
activity. Any concerns related to fraudulent activity of a paid They are reported on U.S. Form 1040,Schedule A , and do
preparer may be reported to the Michigan Department of not reduce federal adjusted gross income (AGI). However,
Treasury, Fraud Unit, P.O. Box 30140, Lansing, MI 48909. itemized deductions are not an allowable subtraction on the
Michigan return.

Michigan follows the federal guidelines regarding the
termination of an estate or trust and the treatment of any
unused NOL carryover. To be eligible to claim the unused
NOL carryover, a copy of the final U.S. Form 1041
Schedule K-1 must be provided.

PDF file checksum: 76379630

(Plugin #1/9.12/13.0)