Michigan 1099 Filing Requirements
The state of Michigan requires certain businesses to file 1099 with Reconciliation Form 5081.
Check out the filing requirements, and let’s get into the e-filing process with TaxBandits!
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Your 1099 Filing Needs
- E-file 1099 with both Federal and State
-
Distribute recipient copies via Postal
Mail and
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Retransmit rejected returns at no
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1099 Forms Required by Michigan
The state of Michigan requires the following types of 1099 forms
Form 1099-NEC
Nonemployee Compensation
Form 1099-MISC
Miscellaneous Information
Form 1099-K
Payment Card and Third-Party Network Transactions
Form 1099-INT
Interest Income
Form 1099-DIV
Dividends and Distributions
Form 1099-R
Distributions From Pensions, Annuities, etc.
Form 1099-B
Proceeds From Broker and Barter Exchange Transactions
Form 1099-G
Certain Government Payments
Form 1099-OID
Original Issue Discount
Form W-2G
Certain Gambling Winnings
Ready to start filing your 1099 with Michigan?
Michigan 1099 Filing Criteria
The Michigan Department of Treasury mandates 1099 filing based on the amount of state taxes withheld and the total payments you have made during the tax year.
| Criteria | Filing Requirement | Additional Requirement | Due Date |
|---|---|---|---|
|
If Michigan state tax is withheld |
1099 forms filed with the IRS are forwarded to Michigan State through the CF/SF Program (Free with TaxBandits when you file your federal 1099 forms with us) E-file with TaxBandits |
Form 5081 (Sale, Use, and Withholding Taxes Annual Return) |
Other Forms January 31, 2025 Form 1099-MISC: March 31, 2025 |
|
If no Michigan state tax is withheld and the payment meets the federal reporting threshold |
1099 forms filed with the IRS are forwarded to Michigan State through the CF/SF Program (Free with TaxBandits when you file your federal 1099 forms with us) E-file with TaxBandits |
No additional form is required |
Other Forms January 31, 2025 Form 1099-MISC: March 31, 2025 |
Ready to E-file the 1099 Form with the Michigan State?
Information Required to File 1099 Forms with Michigan
Discover the key information needed to file Form 1099 with the State of Michigan.
1. State/Payer’s state number
The payer's state identification number refers to the Michigan Withholding Tax Account Number.
Michigan State ID Format:
- 2 digits and hyphen followed by 7 digits (Eg: 99-9999999)
- 9 digits (Eg: 999999999)
The state also accepts Federal TIN as the state ID number.
Michigan state income
The total amount of taxable income that is subject to Michigan state income tax.
Michigan state tax withheld
The total amount of state income taxes withheld from the recipient's income.
If you’ve withheld any Michigan taxes, you must file Reconciliation Form 5081.
E-file with Michigan state in minutes using TaxBandits!
Michigan Sales, Use, and Withholding Taxes Annual Return - Form 5081
Form 5081 is a Sales, Use, and Withholding Taxes Annual Return used by businesses to report and remit sales, use, and withholding taxes. It is filed annually to ensure compliance with state tax laws. The form details the taxes collected and payments made during the year.
Information Reported on 5081:
- Total gross sales for the tax year being reported
- Allowable deductions
- Use tax on items purchased for business or personal use
- Withholding tax
- Total payment due
TaxBandits doesn't support filing 'Form 5081' with the state. The payer must take care of filing Form 'Form 5081' directly with the State of Michigan.
If you choose TaxBandits for your Michigan 1099 filing, you can include Form 5081 for FREE
TaxBandits – Simplifying Michigan State 1099 Compliance
TaxBandits supports the e-filing of 1099 forms directly with the Michigan Department of Treasury, ensuring compliance with state regulations.
Lowest Pricing
TaxBandits offers the most affordable solution for Michigan 1099 filings, saving you both time and money.
State Filing Guidance
TaxBandits offers step-by-step instructions to complete the e-filing process effortlessly.
State Form PDFs
Easily access and download Michigan 1099 form PDFs for filing corrections or record-keeping purposes.
Free Resubmissions
If your 1099 forms are rejected by the Michigan Department of Treasury, you can correct errors and resubmit them for free.
Start filing your Michigan 1099 returns with TaxBandits by creating an account!
How to File Form 1099 with the State of Michigan?
Create your free account and follow these simple steps to effortlessly e-file your 1099 with the federal and the state of Michigan!
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Step 1: Choose Form 1099
Select the type of 1099 form you want to file.
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Step 2: Enter Form 1099 details
Complete the form using manual entry or other bulk import options. Ensure you complete the state-specific fields.
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Step 3:
Complete Reconciliation Form (5081)
Provide the necessary withholding information to complete Form 5081.
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Step 4: Choose Distribution Options
Opt for our distribution services – Postal Mailing, Online Access, or BanditComplete.
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Step 5: Review and Transmit
Review your form and transmit it to the IRS and state agencies.
Are you ready to begin e-filing your 1099 Form with Michigan State? File in minutes with TaxBandits!
Frequently Asked Questions
Does Michigan require 1099 filing?
Yes, Michigan does require the filing of 1099 Forms. The Michigan Department of Treasury mandates the submission of 1099 forms for Michigan residents, irrespective of the issuer's domicile, the location where the resident's work or services were performed, or whether withholding is indicated on the form.
As Michigan participates in the CF/SF program, businesses are obligated to file 1099 forms solely with the Federal government. The IRS will automatically transmit your federal 1099 forms to the state agency.
Does Michigan have a specific payment threshold for Form 1099 filing?
No, Michigan does not have a specific payment threshold for reporting Form 1099. Reporting requirements in the state align with federal guidelines. Payers are required to assess and file a Form 1099 based on the applicable federal threshold for each specific form. Below are the various Federal thresholds for Form 1099.
| 1099 Forms | Federal Threshold |
|---|---|
| Form 1099-NEC | $600 |
| Form 1099-MISC | $600 |
| Form 1099-K | $5000 |
| Form 1099-INT |
|
| Form 1099-DIV |
|
| Form 1099-R | $10 |
| Form 1099-B | - |
| Form 1099-G | - |
| Form W-2G |
|
What types of 1099 forms does Michigan require?
Michigan requires the filing of the following 1099 forms directly with the state only if there is state tax withholding:
Does Michigan require the filing of Form 1099-NEC?
Yes. The State of Michigan requires Form 1099-NEC to be filed only if the non-employee compensation is paid to the resident of Michigan, regardless of where the payer is domiciled or where the resident's work or services were performed.
Note: The state mandates that Form 1099-NEC needs to be filed directly with the Treasury, even though Form 1099-NEC is part of the CF/SF program.
Does Michigan require additional forms when filing 1099?
Yes, Michigan requires the following Withholding Tax Reconciliation Form along with your 1099.
- Form 5081 (Withholding Tax Annual Return) must be filed along with the respective 1099 and W-2 forms. Also, it is used to claim an overpayment refund or pay if the taxes are underpaid.
When you efile 1099 with TaxBandits, you need to take care of Withholding Tax Annual Return Form 5081
When is Michigan 1099 due?
The due date to file Form 1099-MISC is March 31, and other 1099s are due by January 31. Form 5081 is due by February 28.
If the deadline falls on a weekend or federal holiday, the next business day is the deadline.
What are the requirements to file 1099 electronically with Michigan?
The State of Michigan suggests filing electronically if you are submitting 250 or more 1099s.
What are the penalties for not filing or filing 1099 late with Michigan?
The penalties for not filing or filing 1099 late with Michigan can have significant financial implications. The penalty structure is as follows:
- For the first two months of delay, a penalty of 5% of the total unpaid tax due is assessed.
- After the initial two months, an additional 5% of the unpaid tax amount is levied each month.
- The maximum late penalty that can be incurred is capped at 25% of the total unpaid tax owed.
Specifically for Form 5081, the penalty calculation is as follows:
- If the return is filed after February 28 and no tax is due, a daily penalty of $10 is applied, up to a maximum of $400.
- If the return is filed with additional tax due, the penalty and interest must be included with the payment.
Where do I mail the Michigan 1099?
Send your Form 5081 along with your Form 1099 to the following mailing address:
P.O. Box 30401,
Lansing, MI 48909-7901.
After filing 1099s, a PDF for state corrections will be available in TaxBandits. Download it and send it to the above-mentioned email.
For more information, click here to learn about Michigan 1099 filings.
