State of Michigan Individual Income Tax for 2016 Tax Returns

Personal Exemptions Allowances:  The annualized allowance for each tax payer and dependent is $4,000.   The reason for the odd number is due to the fact that the annual rate changed as of October 1, 2012.  Additional exemption allowances were eliminated for anyone over 65. No additional exemption is allowed for any child over the age of 19. If you collect unemployment- any exemption amount exceeding 50% of your income is eliminated.

The annualized tax rate for 2016 is 4.25%.

The Earned Income Tax Credit on the state was 20% of the Federal tax credit in prior years.  This credit has been reduced to 6%.

The Credit for Dividend/Interest Income/Capital Gains has been available for seniors in prior years.  This credit is not available for some seniors depending on their year of birth.

You can no longer deduct Political Contributions.  Also regular Michigan Contributions are no longer available in most cases as a credit.

 

About JLM & Associates/Management & Tax Services

I am an accredited business accountant helping small businesses and individuals
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s