Category Archives: Michigan Tax

Michigan Tax Filing Deadlines

Did you miss the Tax Deadline April 2016?

Although midnight on April 18th is the day you or your accountant should have submitted your 2015 Tax returns into the government, you still have options.

If you missed the date to file by April 18th the government allowed you to file an extension.  The state extension had to be filed by April 18, 2016 giving you until October 17, 2016 to file your returns.  This means you MUST have your 2015 taxes filed by October 17, 2016.

If you missed the April 18th deadline to file your extension you can still file your tax return past the deadline. After your tax return is accepted by the IRS you can file a tax amendment to make changes, there is no deadline for this but there is a three year limit to claim any refunds.

If you missed the deadline and taxes are owed it can be costly, resulting in penalties and interest charges.  If you filed an extension, the IRS reduces the penalty on any unpaid balance due from 5% down to ½% per month through October 17th.   Unfortunately Michigan does not do this, there penalty stays at 5% per month whether you file an extension or not.  So why file a Michigan extension?  They are essentially just to send a payment in if you feel you are going to owe money when your return is completed.

If you expect a refund and do not file on time, there is no tax penalty but it could result in you losing your refund.  Your federal tax return must be filed within three years of the due date and the Michigan return must be filed within four years of the due date.

Here are the main points to remember and to get more information on your personal taxes or business specifically contact us

  • There is no deadline for past due previous year tax returns
  • In order to claim a tax refund, you must file a tax return within 3 years of the original due date
  • If you wait past 3 years your tax refund is forfeited
  • If your taxes are past due and you owe for previous tax years you will be charged late filing fees and late payment penalties, plus interest

If you have more questions about Tax Deadlines please Contact our Accounting and Tax Experts at Comprehensive Accounting at 248-476-7447, located at 33930W. 8 Mile Rd. Suite 1B Farmington Hills, MI 48335.

Health Insurance Credits for Small Businesses

As a small busines owner you may have heard about the Small Employer Health Insurance Credit that is in effect through 2013.  Beginning in 2010, and continuing through 2013, employers that are eligible (small), can claim a 35% tax credit (25% for tax-exempt) for premiums it pays toward health coverage for their employees. Included in the health care reform signed by President Obama on March 23, the employer health insurance credit is meant to entice small business employers to offer first time health insurance or maintain their existing.

Basic Requirements for the Small Employer Health Care Credit

  • Employer has fewer than 25 full time employee equivalents (FTEs)
  • Employer is not a member of a controlled group with more than 25 FTEs
  • Average annual wages for FTEs do not exceed $50,000
  • Employer pays more than 50% of single coverage health insurance premium

For a little more information view this Health Care Tax Credit PDF Excerpt from the Health Care Reform.

Here are some more things we’ve learned concerning President Obama’s Health Care Reform that may affect your small business.

If you are in the 50 or more full time employee category, you have to offer company insurance. You don’t necessarily have to pay for it though.  The cost of the insurance to the employee cannot exceed 9.5% of the employee’s household income and the insurance must cover at least 60% of medical expenses to be qualifying insurance.   If you don’t offer qualifying insurance and an employee goes through a state exchange and receives tax credits to help with their payments, a penalty is assessed to the company of $2,000 per employee excluding the first 30 employees.  So if you had 50 employees the penalty would be $2,000 on 20 employees.

As with everything else you read, this is just a small part of a very big picture. Feel free to contact us to discuss this and other questions regarding tax and finance for your small business.

Michigan Tax Changes Information

On May 25, 2011, Governor Rick Snyder signed legislation restructuring Michigan’s tax structure.  This new legislation will take effect on January 1, 2012 and does not apply to or otherwise impact 2011 tax returns that are due in 2012.  Instead, the first returns that are affected by this legislation are those returns that are due in 2013.

Overview information on how the changes affect the various taxes is located below.  More detailed information will be made available as it’s developed.

Learn More >