News & Events Digest: January 2025

Treasury Employee Erv Bates Celebrates the BLUES 🎶

“Keeping the Blues alive is everyone’s responsibility, but preserving the History of the Blues one story at a time is my mission!” — Erv Bates

Treasury Calculations Assistant Erv Bates is in his sound booth. The booth, a 10’ x 5’ space carved out of his Mason, Michigan home, is where Erv produces his weekly podcast, “Time Signatures with Jim Ervin”. Filled with photos and artifacts from his musical passion for the Blues genre, the space has hosted the voices of some of the most famous Blues musicians in the world.

Erv is so well respected in the industry that his podcast was recently accepted into the 40-year-old Blues Archive at the University of Mississippi. “Time Signatures with Jim Ervin” is the ONLY currently produced podcast that is housed in the Blues Archive; the recognition is an incredible honor and speaks to Erv’s dedication to recording the stories of the men and women who sing the Blues’ melancholy songs of struggle, longing, sadness and strength.

Boasting over 60 episodes and beginning season four, the “Time Signatures” podcast is presented by the Capital Area Blues Society (CABS) and is streamed on Facebook, YouTube and Lansing Community College (LCC) Connect. Erv has interviewed some of the biggest names in the Blues music industry, including 93-year-old Robert Stroger, the legendary Walter Trout, and Joe Bonamassa — who broke all records with 28 #1 Billboard Blues albums.

Michigan’s Individual Income Tax Filing Season Officially Began on Jan. 27

The Michigan Department of Treasury on Jan. 27 announced that the official 2025 filing season has begun and is processing individual income tax returns.

Individuals can file their state individual income tax return online, with a tax professional or by mailing in paper forms and documentation. All state of Michigan income tax returns and payment of any taxes owed must be received by April 15, 2025.

For the convenience of taxpayers, the state's individual income tax deadline is the same date set by the Internal Revenue Service.

“The 2025 individual income tax filing season begins today,” State Treasurer Rachael Eubanks said in a news release marking the beginning of tax season. “My team is ready and will work as fast as practical to process your return and issue refunds. Filing electronically helps ensure tax returns are accurate and improves tax refund turnaround times.”

All employers are required to provide previous year income record forms - W-2s and 1099s - to their employees by Jan. 31. End-of-the-year pay stubs should not be used when filing a state income tax return because they are typically not an accurate reflection of all income received.

Taxpayers who rush to file without all the necessary paperwork will need to file an amended return later. State income tax returns filed without the required paperwork will be placed on hold for future processing and review.

Tax refunds are typically issued within four weeks from when the individual income tax return is received by the state of Michigan through efiling. Allow up to eight weeks for paper filed returns.

Michigan Earned Income Tax Credit (Michigan EITC) for Working Families

Michigan’s 2024 tax return, forms and instructions reflect the expansion of Michigan EITC for Working Families at 30%.

Taxpayers eligible for the Michigan EITC should not delay in filing their tax year 2024 return and claiming the expanded credit. For the 2023 tax year, more than 653,000 recipients received the Michigan ETIC, with an average credit at $836.

“Retirement Tax” Rollback Continues

Taxpayers have more options so they can choose the best taxing situation for retirement benefits for the 2024 tax year.

Over a four-year phase-in, which began last tax year, state law restores the pre-2012 retirement and pension subtraction for most taxpayers in Michigan beginning in 2026. The change benefits retirees in Michigan while ensuring taxpayers in unique circumstances are not harmed.

Retirees should consult a tax preparer for what options are best for their situation.

City of Detroit Individual Income Tax Returns

City of Detroit individual income tax return filing begins on Jan. 27 and ends on April 15, like federal and state income tax returns. City individual income tax returns can be e-filed or completed using paper forms and mailed through the U.S. Postal Service.

Taxpayers with taxes due can pay by eCheck or debit card or credit card by April 15, 2025. To make a city of Detroit individual income tax payment, go to www.michigan.gov/citytax and then click on the “City of Detroit Individual Income Tax” button and then “Make a Payment.”

As a part of a partnership with the city, the Michigan Department of Treasury has been processing the city of Detroit’s individual income tax returns since the 2015 tax year. In calendar year 2024, more than 300,000 city individual income tax returns were received and processed by the state.

To learn more about city of Detroit income taxes, go to www.michigan.gov/citytax.

How to File

Choosing electronic filing and direct deposit is convenient, safe and secure. Last year, of the approximately 5 million returns received by Treasury, Michigan taxpayers e-filed more than 91% of those returns.

For more information about e-filing, go to www.mifastfile.org.

Individuals with low to moderate income, disabilities or are 60 years of age or older may qualify for free tax preparation help from IRS-certified volunteers. For information about free tax help, go to irs.treasury.gov/freetaxprep or dial 2-1-1.

Additional free tax help can be found at www.michiganfreetaxhelp.org.

Business Taxpayers Reminded About State Filing of W-2s and 1099s

Business taxpayers are reminded that they must submit state copies of their 2024 income record forms -- such as W-2s, 1099-NEC, 1099-MISC and 1099-R -- to the Michigan Department of Treasury on or before Jan. 31, 2025. Business taxpayers can submit their 1099-MISC on or before Feb. 28 for paper filers and on or before March 31 for electronic filers.

Business taxpayers may send their income record forms to Treasury through one of the following options, depending on how many W-2s and 1099s the entity issues:

Michigan Treasury Online (MTO): While open to all taxpayers, businesses issuing 250 or more income record forms are required to use MTO to send W-2 and 1099 forms. Taxpayers and tax professionals can create a personal user profile and upload these forms. For guidance, visit the MTO Help Center.

Mailed Magnetic Media: Treasury accepts magnetic media filing from taxpayers with fewer than 250 forms. Details for mailing magnetic media can be found on Transmittal for Magnetic Media Reporting of W-2s, W-2Gs and 1099s (Form 447).

Paper Form Mailing: Paper copies of income record forms may be mailed by issuers with fewer than 250 forms to the following address:

Michigan Department of Treasury
Lansing, MI 48930

No additional documentation is needed with paper form mailing.

Combined Federal/State Filing (CF/SF) Program: Michigan participates in this federal file sharing program. The IRS sends certain electronically filed income record form information to Michigan, satisfying a taxpayer's filing requirement with Treasury.

Notably, while Form 1099-NEC is eligible for this program federally, Michigan requires direct filing of the state copy with Treasury. For more information, including requirements and limitations, review Treasury’s Income Record Form Remittance Guide.

Although most income record forms are due on or before Jan. 31, 2025, the Sales, Use and Withholding Taxes Annual Return (Form 5081) is still due on Feb. 28, 2025. W-2s and 1099s should not be submitted with Form 5081.

Michigan Earned Income Tax Credit for Working Families Lowers Tax Bill or Provides Refund

Working families and individuals with low to moderate income may be able to receive Michigan’s Earned Income Tax Credit (EITC).

The Michigan Earned Income Tax Credit for Working Families is a benefit for working families with income below a certain level. This credit can lead to increased refunds on taxes already paid or a refund if you do not owe tax.

“Michiganders should explore if they are eligible for the Earned Income Tax Credit,” State Treasurer Rachael Eubanks said. “The extra income this tax credit provides can be really helpful to working families, especially for paying bills or putting food on the table. Please don’t hesitate to seek out assistance so you can claim it on both your federal and state individual income tax returns.”

To qualify, individuals must meet certain requirements and file a federal income tax return, even if no tax is owed or there is no requirement to file a return. If you are eligible and claim the federal EITC, the state of Michigan offers up to 30% of the federal credit when the taxpayer files their state income tax return.

The amount of the federal EITC depends on income, filing status and number of qualifying children claimed as dependents on the taxpayer’s federal income tax return.

Last tax year, more than 653,000 recipients received the Michigan EITC with an average credit of $836.

To inform and educate taxpayers about the federal and state EITCs, Earned Income Tax Awareness Day is on Friday, Jan. 31.

Treasury Talk guest host Ron Leix interviews Treasury Outreach Manager Sarah Rusnell about what taxpayers can expect during the 2025 tax filing season.

Your Career Starts Here!

Check for Unclaimed Property or Assets Today

Michiganders are encouraged to conduct a simple search online to see if they have any lost or abandoned property as a part of National Unclaimed Property Day on Saturday, Feb. 1.

“Taking a few minutes of your day to search for unclaimed property could put a few dollars in your pocket,” said Terry Stanton, who oversees Michigan’s Unclaimed Property Program. “If you haven’t checked out our site lately, I’d recommend doing so. Our unclaimed property website is updated throughout the year. My team is ready to help begin the process to reunite you with your unclaimed property or assets.”

To find out if you have cash or property, go directly to the Michigan's Unclaimed Property website, which provides enhanced search options and the ability to upload verifying documentation easily and securely. Individuals who live outside of the state of Michigan can check multiple states’ unclaimed property listings at www.UCPday.com.

Treasury has millions of dollars in lost or forgotten assets that includes dormant bank accounts, uncashed checks, valuables left in safe deposit boxes and stock certificates. These properties were all turned over to the state once they were determined to be abandoned as required by law.

Treasury is the custodian of these assets and reunites them with their owners -- or the owners' heirs -- when they are rightfully claimed.

Individuals are encouraged to search their name, a maiden name, or the name of a business or nonprofit. There is never a charge to search for and claim property.

Claimants may also call 517-636-5320 between 9 a.m. and 2 p.m., Monday through Friday.

Since 2020, MI Unclaimed Property has returned more than $676 million to owners or their heirs. In the last fiscal year, more than $150 million was reunited with owner and heirs.

To learn more about Michigan’s Unclaimed Property program, visit www.michigan.gov/unclaimedproperty.

Latrice Russell as the new Tax Compliance Bureau Director

Deputy State Treasurer Kavita Kale recently announced that Latrice Russell has been named as the new Tax Compliance Bureau (TCB) Director, effective January 19, 2025.

Latrice has been with the Michigan Department of Treasury since 2006, serving in various roles in both the Collections Service Bureau and Tax Compliance Bureau, including Revenue Officer, Auditor, Audit Supervisor and, most recently, as the State Administrative Manager overseeing the Western Region Field Audit Division 2 within TCB.

Latrice has demonstrated leadership in many projects like Point of Sales Suppression, Marihuana and Retailer Prepaid Wireless 911 Surcharge. Her tax knowledge, experience in building successful teams, and forming mutually beneficial partnerships throughout Treasury will benefit Tax Compliance now and in the future.

Administration, Fiscal Agencies Reach Consensus on Revenue Estimates

State Treasurer Rachael Eubanks, Senate Fiscal Agency Director Kathryn Summers and House Fiscal Agency Director Mary Ann Cleary on Jan. 10 reached consensus on revised economic and revenue figures for the remainder of Fiscal Year (FY) 2025, the upcoming 2026 fiscal year and the initial forecast for the 2027 fiscal year.

“The state of Michigan heard good news today from our leading economists,” State Treasurer Rachael Eubanks said. “Our revenue estimates have exceeded expectations, with forecasts projecting a half a billion dollar increase this fiscal year and modest increases in future years. In addition, Michigan’s economy is showing positive signs. Inflation is cooling, the labor market is stable and incomes are growing. We are in a great position as the budget process begins.”

A table of the revenue projections is available on the Michigan Department of Treasury's website.

These revenue estimates are based on the most recent economic projections and forecasting models. As with any economic and revenue forecast, there are potential risks to the estimates agreed to today, including unexpected changes in the national economy and international economic issues.

“Michigan’s economy is strong and we’re well positioned going into 2025,” said State Budget Director Jen Flood. “Our budget will focus on growing our economy, lowering costs for Michiganders, and helping kids learn. We look forward to working with leaders in both parties to pass a budget by the July 1 deadline.”

FY 2025 spans from Oct. 1, 2024, to Sept. 30, 2025, while FY 2026 spans from Oct. 1, 2025, to Sept. 30, 2026. FY 2027 begins on Oct. 1, 2026.

The January Consensus Revenue Estimating Conference’s detailed forecast – as well as presentations from today’s session – can be found at www.michigan.gov/crec.

The Michigan Infrastructure Council Releases the 30-Year Integrated Infrastructure Strategy

The Michigan Infrastructure Council (MIC) has unveiled its first-ever 30-Year Integrated Infrastructure Strategy, marking the culmination of five years of efforts required by Public Act 323 of 2018. The MIC has worked extensively with stakeholders statewide to improve infrastructure management and foster greater collaboration across asset managers. Developed with input from over 1,000 infrastructure stakeholders, the Strategy sets forth a long-term vision for a more integrated infrastructure landscape while outlining actionable steps to achieve it.

The Strategy positions Michigan as a potential national leader in infrastructure management by adopting a holistic, collaborative approach. It emphasizes coordination among public and private infrastructure owners, partnerships across government levels, and robust community engagement. These efforts aim to guide investment prioritization, minimize disruptions to citizens, and enhance infrastructure performance to improve quality of life for Michigan residents.

Stakeholder participation has been vital to shaping the Strategy. Designed for a broad audience, including public and private infrastructure owners, elected officials, consultants, contractors, and the general public, the plan focuses on critical sectors: energy, transportation, water, and communication. Its ultimate goal is to ensure sustainable and resilient infrastructure that meets societal needs and benefits future generations.

Looking ahead

MIC will host in-person workshops across the state in 2025 to deepen engagement and strengthen support for the Strategy's initiatives. Partnerships are deemed essential to overcoming infrastructure challenges, and MIC remains committed to supporting its stakeholders even after the Strategy's rollout. This 30-year plan stands as a commitment to improving Michigan's infrastructure and the lives of its residents.

To learn more about the MIC, go to www.michigan.gov/mic.

Mark your Calendar for the
2025 Fostering Futures Scholarship Events

Kalamazoo Dinner Gala
Friday, April 11
5:30 p.m. to 9:30 p.m.
Radisson Plaza Hotel, Kalamazoo

Pizza Party on the Michigan State Capitol Lawn
Wednesday, June 18
11 a.m. to 2 p.m.
Capitol Lawn, Lansing

Detroit Dinner Gala
Friday, September 12
5:30 p.m. to 9:30 p.m.
Roostertail, Detroit

Learn more at www.michigan.gov/fosteringfutures.

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