News & Events Digest

Under a new partnership announced today, Michigan families can leverage their everyday purchases into college savings for their children and grandchildren similar to earning cash back for gas or groceries.

The partnership between the Michigan Education Savings Program (MESP) and Upromise, a leading consumer brand, offers a free rewards program designed to help families save for college.

?It is not often we get an opportunity like this to promote a program that turns an ordinary shopping trip into cash for college ? talk about bargain shopping,? said Diane Brewer, Michigan Education Trust executive director. ?The state of Michigan continues to make clearing barriers to higher education a top priority and we are confident promoting Upromise in Michigan will strengthen that effort.?

Brewer?s office, within the Michigan Department of Treasury, oversees MESP ? a state-sponsored, tax-advantaged 529 college savings plan created in 2000 to help Michiganders save for higher education.

With the cost of college increasing at a faster rate than inflation, Brewer says that MESP provides families the ability to invest and grow their savings not only over the long term but also in a more tax-favorable manner.?

?Upromise augments that savings by offering a simple, free and almost effortless dividend for a child?s future educational needs,? Brewer said. ?Any time you eat out, buy groceries, fill your gas tank or make just about any routine purchase, Upromise will add to your college savings plan at no additional cost to you.?

Derek DeLorenzo, senior director for Upromise 529 programs, pointed to the program?s success across the nation as, likely, evidence that it will grow in Michigan.

?Upromise has been highly successful in other states, and we are extremely excited to expand it in Michigan,? DeLorenzo said. ?We look forward to continuing our mission to invest in higher education in Michigan and throughout the country.?

To learn more about the program or to enroll, please contact,?MIsaves.com/upromise22.

Brewer encouraged parents, grandparents and guardians to put their money to work in an MESP account for a child or grandchild.

Managed by TIAA-CREF Tuition Financing Inc. on behalf of the Michigan Department of Treasury, MESP has more than 299,000 accounts with total assets exceeding $6.6 billion.

MESP contributions can be placed in a variety of investment options, where they grow tax-deferred and then can be withdrawn tax-free for qualified education expenses.

The savings program can be used at any eligible college, university or trade school in the nation for a variety of qualified higher education expenses, including tuition, fees, certain room and board costs, books, supplies and equipment required for enrollment.

System upgrades in preparation for next year's individual income tax filing season are underway.

On Dec. 8, the state Treasury Department suspended processing state individual income tax refunds due to annual tax processing system upgrades required for the upcoming 2023 tax filing season. Individuals will be able to check the status of their refunds or returns after Jan. 9, 2023.

Most timely filed refunds for tax year 2021 have been processed.

"I want to thank taxpayers for their patience as we conduct our annual system upgrade in preparation for the 2023 individual income tax filing season," said Deputy State Treasurer Glenn White, who oversees the state Treasury Department's Revenue Services programs. "When the system is operational again in January, we will resume processing tax returns and issuing refunds. We look forward to serving taxpayers in the new year."

At the close of each calendar year, the Michigan Department of Treasury undergoes system maintenance in preparation for the upcoming individual income tax filing season. The Internal Revenue Service and other states have similar end-of-the-year maintenance schedules.

For the 2022 filing season, the state Treasury Department processed more than 5.2 million 2021 tax year individual income tax returns, with a typical refund around $650.

Questions?

Although individual income tax return processing will be suspended until early next year, taxpayers can continue to ask questions through?Treasury eServices. The online platform enables taxpayers to ask state income tax-related questions when convenient.

To get started with Treasury eServices, go to?www.michigan.gov/incometax?and click on "Access eServices."

Taxpayers are encouraged to check with current and previous employers and financial institutions to ensure they have up-to-date addresses on file in preparation for the 2023 income tax filing season.

By ensuring employers and financial institutions have the latest address information on file, W-2s and other financial documents can be mailed to the correct address. Incorrect addresses typically lead to information being mailed to the wrong location and could cause delays when filing tax returns.

?Making sure your address is updated with current and past employers and financial institutions can help prevent paperwork headaches when you file your income taxes next year," said Deputy State Treasurer Glenn White, who oversees Treasury's Revenue Services programs. "When the individual income tax processing season opens at the beginning of next year, we will be ready to process your return. A few moments of your time today can make filing much easier tomorrow."

Other notable items for Michigan's 2023 individual income tax filing season (2022 tax year):

• Beginning in January 2023, forms and instructions may be viewed and downloaded from www.michigan.gov/taxes. In addition, commonly used forms will continue to be available at Treasury offices, public libraries, northern Michigan post offices and Michigan Department of Health and Human Services county offices.
  
  
• When tax season begins in late January, taxpayers are encouraged to e-file their state tax returns instead of mailing a paper return. To learn more, go to www.mifastfile.org.
  
  
• Taxpayers who have been recent victims of identity theft are asked to report their circumstances to the state Treasury Department. Reporting identity theft helps thwart cybercriminals who attempt to file returns and steal state tax refunds. To learn more about tax-related identity theft, go to www.michigan.gov/identitytheft.

For the 2022 filing season, the state Treasury Department processed more than 5.2 million 2021 tax year individual income tax returns, with a typical refund around $650. Most timely filed refunds for the 2021 tax year have been processed.

Join Michigan's State Treasurer?Rachael Eubanks?and guest?Scott Lonberger, director of Treasury?s Tax Administration Services Bureau, to learn more about end-of-year tax preparation for small businesses and entrepreneurs. ?

Podcast guest Scott Lonberger has been with the Michigan Department of Treasury for 21 years serving in various capacities related to contract administration, municipal finance, property taxation and since 2012, as the Director of the Tax Administration Services Bureau. Scott is a licensed attorney with degrees from Purdue University and Western Michigan University Cooley Law School.

Listen now:?https://treasurytalk.buzzsprout.com/2065389/11884815-end-of-year-tax-tips-and-your-small-business

TAX RESOURCES for Your Small Business:

• Small Business and Self-Employed Tax Center?(IRS)
• Michigan Treasury Online?(sign up for an MTO account to file, pay, and manage your business taxes)
• Michigan.gov/taxes?(for a variety of business taxes information)
• Michigan.gov/treasuryoutreach?(sign up for future outreach notifications)
• Etreas.michigan.gov/bt?(for business taxpayers to submit account questions)
• Etreas.michigan.gov/tp?(for tax professionals to submit account questions)

As required by Public Act 176 of 2015, the Michigan Department of Treasury issues this notice to announce the inflation-adjusted tax rates imposed on each gallon (or gallon-equivalent) of motor fuel and alternative fuel under the Motor Fuel Tax Act ("MFTA"), MCL 207.1001?et seq, and the Motor Carrier Fuel Tax Act ("MCFTA"), MCL 207.211?et seq, that will be effective January 1, 2023.

Under subsection 8(1)(c) of the MFTA, MCL 207.1008(1)(c), the Department must annually update the tax rates applicable to each gallon of motor fuel by an inflation adjustment equal to the lesser of: 5% or the "inflation rate" (as defined in MCL 207.1003(l)), rounded to the nearest 1/10 of a cent.

Based on data released through October 13, 2022, by the United States Department of Labor, the Department has determined that the inflation rate applicable to the MFTA tax rates effective January 1, 2023, is 7.9%. Accordingly, the inflation-adjusted tax rate imposed on motor fuel under the MFTA for the tax period beginning January 1, 2023, through December 31, 2023, is?28.6?cents per gallon (27.2 cents per gallon x 1.05 = 28.6 cents per gallon).

Because the MFTA tax rate applicable to "alternative fuel" must equal the tax rate imposed on motor fuel, the tax rate applicable to alternative fuel under the MFTA is also?28.6?cents per gallon (or per gallon equivalent) for the tax period beginning January 1, 2023, through December 31, 2023.???

Similarly, subsection 2(6) of the MCFTA, MCL 207.212(6), requires that the tax rates imposed under the MCFTA on each gallon or gallon equivalent of motor fuel and alternative fuel, as applicable, consumed on Michigan public roads or highways?must equal the MFTA tax rates imposed on motor fuel and alternative fuel. Therefore, the fuel tax rates under MCL 207.212(6) for motor carriers licensed or otherwise subject to the International Fuel Tax Agreement is?28.6?cents per gallon (or gallon equivalent) of motor fuel and alternative fuel for the tax period beginning January 1, 2023, through December 31, 2023.? ?