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Showing 17 posts in Income Tax.

Alternative Minimum Tax Permanently “Patched”

Alternative Minimum Tax Permanently “Patched” The Alternative Minimum Tax (“AMT”) was enacted in 1969 to ensure that high-income individuals paid at least a minimal amount of tax.  The AMT operates parallel to the regular tax system and allows different deductions, credits, and exemptions. Read about the changes to the AMT ›

Categories: Alternative Minimum Tax, Income Tax

American Taxpayer Relief Act Summary

On January 2, 2013, President Obama signed the American Taxpayer Relief Act of 2012 (ATRA) into law. Enacted to address the tax side of the “fiscal cliff,” the ATRA primarily addresses the expiration of certain portions of the Bush-era tax cuts.  Below is a summary of the major tax provisions in the ATRA. Read More ›

Categories: Alternative Minimum Tax, Income Tax

New Law Clarifies Withholding Requirements for Flow-Through Entities

Tax withholding requirements in Michigan are set forth in MCL 206.703.  Every Michigan employer that is required to withhold federal income tax under the Internal Revenue Code is also required to register and withhold Michigan income taxes.  Effective January 1, 2012, companies that pay pension and retirement benefits are also required to withhold Michigan income taxes on those payments to retirees. The withholding rate is generally 4.35%. Read More ›

Categories: Income Tax

Treasury Form 4913 for Quarterly Corporate Income Tax Payments

The Corporate Income Tax (“CIT”) took effect on January 1, 2012 and replaced the Michigan Business Tax (“MBT”) for most taxpayers, except those electing to continue the MBT to claim certain credits.  The CIT consists of a franchise tax for financial institutions, a premium tax for insurance companies, and a flat 6% income tax for C Corporations and entities taxed as C Corporations for federal income tax purposes. As discussed in prior blog postings, the CIT does not apply to pass-through entities, such as LLCs or partnerships. Read More ›

Categories: Corporate Income Tax, Income Tax

Revamp of Michigan Individual Income Tax Landscape

In 2011, Governor Rick Snyder signed into law Public Acts 38 and 39 of 2011 (the “Act”), which make sweeping changes to Michigan’s business and individual tax landscape.

Relevant to individuals, the Act makes many changes, including taxing income from pensions and other types of retirement plans.  This article summarizes the changes applicable to individuals. Read More ›

Categories: Income Tax

Michigan Supreme Court Upholds Taxation of Public Pensions, But Strikes Down Graduated Income Tax

In 2011, Public Act 38 was signed into law.  Prior to Public Act 38, public pension benefits were completely deductible, private pensions were deductible up to $45,120 (for a single filer), and all taxpayers were entitled to a personal exemption of $2,500.

Public Act 38 changed that as follows: Read More ›

Categories: Income Tax

Proposed Corporate Income Tax Credit For Hiring Veterans

corporate income tax creditIn 2011, the Michigan Corporate Income Tax ("CIT") was signed into law.  The CIT repealed the Michigan Business Tax and replaced it with a flat 6% tax on businesses that are taxed as C corporations for federal income tax purposes. Read More ›

Categories: Corporate Income Tax, Income Tax