(Friday - April 02, 2021) - The Michigan
Department of Treasury has posted a notice
for taxpayers related to the treatment of unemployment compensation
for tax year 2020.
The federal American Rescue Plan Act excludes unemployment benefits up
to $10,200 from income for tax year 2020 for those within
certain income brackets, providing tax relief on both federal and
state income taxes. Taxpayers who may have anticipated owing taxes may
now be entitled to a refund.
"If you have already filed your tax return, please wait to file an
amended return to receive the American Rescue Plan Act benefits," State
Treasurer Rachael Eubanks said. "The IRS will be adjusting received
returns and begin processing them in May without the need for taxpayers
to file an amended federal return. States are awaiting guidance from the
IRS as to whether they can provide us with the information we would need
to do a similar calculation at the state level. This would alleviate the
need to file an amended state return. We appreciate taxpayers' patience
as we work through this."
There is no need for taxpayers to file an amended federal return unless
the calculations make the taxpayer newly eligible for additional federal
credits and deductions not already included on the original tax return.
The notice also includes information related to total household
resources and household income for the purposes of various tax credits.
Additional information will be posted as it becomes available.
How to File a State Tax Return
Choosing electronic filing and direct deposit is convenient, safe and
secure. Last year, more than 4.4 million Michigan taxpayers e-filed,
which is 86 percent of state income tax filers.
For more information about e-filing, go to www.mifastfile.org.
Printed tax forms were distributed and are available in limited
quantities at public libraries, some northern Michigan post offices,
Michigan Department of Health and Human Services county offices and
Treasury Field Offices.
All individual income tax returns must be received by 11:59 p.m. on May
For the benefit and convenience of taxpayers, both the beginning and end
of the individual income tax filing season are the same as the Internal
Taxpayers with questions about their state income taxes are encouraged
to use Treasury
eServices. The online platform enables taxpayers to ask state income
tax-related questions when convenient and avoids waiting for a state
Treasury Department customer service representative to answer your call.