Understanding Michigan Tax Extensions: A Comprehensive Guide

Hey, Michigan taxpayers!

Tax extensions can be a bit tricky, but we’ve got you covered.

Whether you’re waiting on documents or just need a little more time to get your ducks in a row, understanding how to file for a tax extension can save you from stress and penalties.

In this post, we’ll walk you through everything you need to know about Michigan tax extensions.

We’ll cover if you need to request a separate state tax extension, the deadlines you need to know, and the forms you need to fill out.

And we’ll go over the penalties for late filing and late payment so that you won’t be surprised.

So grab a coffee, and let’s get into the nitty gritty of extending your tax filing deadline in Michigan.

By the end of this, you’ll have everything you need to manage your tax extension and stay on top of things. Let’s go!

Do I Need to File a Separate Tax Extension for Michigan If I Already Filed a Federal Tax Extension?

If you have already filed for a federal tax extension, you do not need to file a separate one for Michigan. 

Michigan automatically grants a six-month extension to file your state return if you have a valid federal extension (Form 4868). However, this extension does not extend the time to pay any taxes due.

When is the Deadline to File a Tax Extension for Michigan?

The deadline to file a tax extension for Michigan is the same as the federal tax filing deadline, April 15th. If you have a valid federal extension, Michigan will grant you the same six-month extension, moving your filing deadline to October 15th.  

If you don’t have a federal extension, you should complete the "Extension of Time to File Michigan Tax Returns" (Form 4)

If I File a Tax Extension For Michigan, When Is My New Deadline?

If you file a tax extension for Michigan, your new deadline will be October 15th if you were granted a six-month extension from April 15th.

Not Sure Where to Start? Let Us Help!

Get started filing your tax extension now to get an additional 6 months to file your federal tax return.

How Do I File a Michigan Tax Extension?

If you've filed a federal tax extension, you'll automatically be granted a Michigan tax extension.

However, if you need an extension for Michigan but do not have a federal extension, you should file Form 4, Application for Extension of Time to File Michigan Tax Returns, and submit it by April 15th.

Filing Methods: Online and Paper

You can file your Michigan tax extension both online or by paper.

Online Filing

Michigan offers a convenient e-Payments service for submitting extension requests and making payments electronically. Here's how to do it:

1. Visit the Michigan Department of Treasury Website: Go to the Michigan Department of Treasury website and navigate to the Individual Income Tax section.

2. Select "Pay Income Taxes Online": Find the "Pay Income Taxes Online" section.

   

3. Select "Make an ePayment": Find the e-Payment button and select "2023 Extension", the option for individual income tax extensions.

4. Submit Your Extension Request: Follow the instructions to submit your extension request online. Make sure you have all the necessary information, including your Social Security Number and estimated tax payment amount.

5. Make a Payment: You can pay electronically using a credit card, debit card, or direct bank transfer. Keep a copy of the confirmation for your records.

6. Access Individual Income Tax eServices to get other helpful tax information like "Change My Address".

Paper Filing

If you prefer to file by paper, follow these steps:

1. Download Form 4: Obtain the "Application for Extension of Time to File Michigan Tax Returns" (Form 4) from the Michigan Department of Treasury website.
2. Complete the Form: Fill out all required sections of Form 4, including your personal information and estimated tax payment.
3. Prepare Your Payment: Write a check or money order for your estimated tax payment amount. Make it payable to the "State of Michigan".
4. Mail Your Form and Payment: Send the completed Form 4 and your payment to:

Michigan Department of Treasury, P.O. Box 30774, Lansing, MI 48909

Ensure your mail is postmarked by the original due date to avoid penalties.

Do I Need to Pay My State Taxes When I File a Tax Extension for Michigan?

Yes, you must pay any estimated state taxes due when you file for an extension. The extension grants you more time to file your return, but not time to pay your taxes. Use Form 4 or file online to submit any payment with your extension request to avoid interest and penalties.

Important Note: An extension of time to file is not an extension of time to pay. Extension requests received without payment will be denied. Submit online e-Payments for individual income tax extensions for the 2023 tax year.  

You can also mail payments via check or money order. Mail your payment with the "Application for Extension of Time to File Michigan Tax Returns" to:

Michigan Department of Treasury P.O. Box 30774 Lansing, MI 48909

What Are the Penalties for Paying My Taxes Late in Michigan?

The penalty for paying your Michigan state taxes late is 5% of the unpaid tax per month, up to a maximum of 25% of the tax due. Interest will also accrue on any unpaid taxes from the original due date of April 15th until you submit your payment.

Example: If you owe $1,000 in Michigan state taxes and pay your taxes five months late, the penalties and interest would be calculated as follows:

• Monthly penalty: 5% of $1,000 = $50 per month

  • 5 months x $50 = $250

So, after five months, your total penalty would be $250 on top of the $1,000 tax due, making your total amount owed $1,250.

Additionally, interest will accrue on the unpaid taxes. The interest rate is 1 percent above the adjusted prime rate and is adjusted on January 1st and July 1st.

If you want to estimate your taxes, use the Michigan Tax Penalty and Interest Calculator.

How Do I Know Whether I Should File a Tax Extension for Michigan?

You should file a tax extension for Michigan if you need additional time to gather the necessary documents or information to complete your return accurately, and you haven't already filed a federal tax extension. 

If you cannot meet the original filing deadline, an extension can help you avoid penalties.

Is There Anything Else I Need to Know About Filing a Tax Extension for Michigan?

A federal extension (Form 4868) automatically extends your Michigan tax-filing deadline, but you still need to pay any tax due by April 15th to avoid interest and penalties. 

If you are filing a Michigan extension separately from a federal extension, make sure to send any payments with Form 4.

Work with Our Experts!

You may not need to file a tax extension for Michigan, but if you want extra time to file your federal taxes, you'll need to request a federal tax extension. We can help. Click here to get started. 

Michigan Tax Collected for Fiscal Year 2022

In the fiscal year 2022, Michigan's Department of Treasury collected tax revenue from various sources. Understanding the distribution of these tax revenues provides valuable insights into the state's financial health and priorities.

Tax Revenues Collected

By Percentage

This chart highlights the tax revenue streams and their respective contributions to the overall tax revenue collected in Michigan for the fiscal year ending September 30, 2022.

By $ (in Thousands of Dollars)

The bar chart provides a detailed breakdown of the total tax revenue collected from various sources in Michigan for the fiscal year 2022. Net Individual Income Tax and Sales Tax are the dominant sources, generating $14,581,129 and $10,725,273, respectively.

Other notable contributors include Motor Fuel Taxes, State Education Tax, and Use Tax, each contributing significant amounts to the state’s total tax revenue.

Summary

A Michigan tax extension will give you the time to ensure your return is complete and accurate. But remember, the extension does not extend the time to pay taxes due. 

Check with the Michigan Department of Treasury for the latest requirements and guidelines to avoid tax filing issues. 

Follow the steps above and be aware of the penalties and deadlines to manage your extension and stay on top of your responsibilities.