How to Pay Michigan State Taxes
Complete Guide to MI DOR Tax Payments
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How to Pay Michigan State Taxes
If you live and work in Michigan, you generally need to file an individual state income tax return. Businesses also need to file a variety of returns including sales and use and withholding returns. Of course, once you file, you will also need to pay.
Wondering how to pay your Michigan state taxes? Curious about online and mail payment options? Trying to pay delinquent state taxes? Then, keep reading for an overview of the essentials.
How to Pay Michigan Income Tax Through the Mail
You can pay your income tax by mailing a check with your MI-1040 income tax return, or you can request to have your payment directly debited from your bank account. If you use a tax preparer or tax software to file, they should be able to help you set up a direct debit for the payment.
To make estimated tax payments through the mail, attach a check or money order to the voucher for MI-1040ES.
How to Pay Income Taxes Online
Alternatively, you can pay state income tax online through the MI Department of Treasury’s e-payment services. This includes payments for your state income tax return and estimated payments. To make a payment, select e-check or debit/credit card payment. Then follow the payment prompts on the next page.
E-check payments are free, but you can only select this option if you filed an income tax return the previous year. You need to enter your Social Security Number and the zip code from your tax return.
Anyone can make a credit or debit card payment on their Michigan state income taxes. To do so, you need to enter your name, Social Security Number, the type of tax, whether or not you filed your last income tax return, and the payment amount. As of May 2023, there is a $3.95 flat fee to use a debit card. The fee is 2.35% of the payment for credit card payments.
How to Pay Business Taxes in Michigan
You can pay business taxes online through Mi Treasury Online (MTO). This includes sales tax, withholding tax, corporate income tax, business tax, flow-through entity tax, and marihuana taxes (yep, the state of Michigan spells marijuana with an “h”). You must create an online account to use the MTO system.
Businesses must pay flow-through entity tax, marihuana tax, and partnership audit adjustments online. If you are a 4/6% filer, an accelerated filer, a fuel credit filer, or a vehicle dealer, you must pay all of your business taxes online or through bulk e-file. In all other cases, you can pay through the mail if you like. Simply, mail in the payment with your return.
How to Pay MI Sales and Withholding Tax
You can file and pay withholding and sales tax online as explained above, or you can mail a payment with your sales tax and withholding return.
Monthly and quarterly filers should file Form 5080, and they should note their account number along with “SUW Monthly/Quarterly” and the return period on the check. Annual filers should file Form 5081, and they should note “SUW Annual” as well as the year on the check.
How to Pay a Collections Account
If your tax bill is in collections, you won’t be able to pay through DOT’s e-services. Instead, you can pay through the mail by following the instructions on your collection notice. Alternatively, you can pay online using an ACH debit or a credit/debit card.
You need the collections account number and your zip code. The website will prompt you to complete a spam block. This is just a test to see if you are a human, and the instructions are below the spam block. The process varies, but for example, the system may ask you to perform a simple math test such as adding three to four.
What If You Can’t Pay in Full?
If you can’t afford to pay in full, pay as much as you can when you file your tax return. Then, if possible, continue to mail payments or make payments online through e-services until you receive a Notice of Intent/Final Bill Tax Due. At that point, you can apply for a payment plan.
To request a payment plan with the MI DOT, file Form 990 (Installment Agreement). On this form, you will note your proposed monthly payment. The DOT will require you to share detailed information about your financial situation.
If your payment plan is approved, you can set up payments to come out of your bank account automatically. Or you can mail in payments or sign into e-services to make a payment every month. You are responsible for paying your monthly payment even if you don’t receive a reminder or a voucher in the mail.
If you can’t find your payment voucher, send your payments to the following address:
Michigan Department of Treasury
PO Box 30199
Lansing, MI 48909
Make the check out to the State of Michigan and note your assessment number in the memo portion of the check. If desired, you can make extra payments, but they don’t take the place of your regularly scheduled payment. For instance, if you are supposed to pay $100 per month and you send $250 one month, you must still make the full $100 payment the following month.
Other Alternatives If You Can’t Make Monthly Payments
If you can’t afford to set up a payment plan, you may want to look into the state’s offer in compromise program. Essentially, you convince the state that you can only afford to pay a certain amount, and then, the DOT will let you settle for less than you owe. You will have to prove that you’re paying the most you possibly can, and you may need to sell assets or adjust your budget to eliminate unnecessary expenses.
Michigan also offers a currently-not-collectible status. You make a financial disclosure to prove that you can’t pay. Then, the state marks your account as currently not collectible and it stops collection actions against you. This status is subject to review, and the DOT will require payment if your finances improve.
Get Help With Michigan Taxes
Surprisingly, dealing with state revenue agencies can often be a lot harder than dealing with the IRS. To ensure you get the best results in your situation, you should work with a tax attorney who has experience in this state. At the W Law Group, our tax attorneys have experience dealing with the MI DOT as well as many other state revenue agencies. To get help now, contact us for a free consultation today.
