4905: Insurance Company Annual Return for Corporate Income and Retaliatory Taxes (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4905 is the 2024 annual return for insurance companies to calculate premiums tax under the Corporate Income Tax and claim credits against that tax. It also calculates retaliatory tax for foreign and alien insurers and reports payments, tax due, and any overpayment.
Who files this form
Form 4905 is for insurance companies to calculate Michigan premiums tax under the Corporate Income Tax and claim credits against that tax.
Foreign insurers must also compare tax burdens to determine whether retaliatory tax is due. Domestic insurers skip lines 32 through 46.
Alien insurers are treated as foreign insurers unless their port of entry is Michigan. If their port of entry is Michigan, they are treated as domestic insurers for this return.
When it's due
For the 2024 tax-year return, the text states that New York-domiciled companies must file and pay a tentative retaliatory tax by the Michigan annual return due date, March 1. The text does not specify the calendar year for that date.
These companies must file Form 4905 after filing their actual CT33 with New York.
What you'll need
Gather your company's FEIN, address, state of incorporation, premium records, and records of tax payments and credits.
For the 2024 return, credit records include payments and refunds for the listed facilities and associations from January 1 through December 31, 2023, and Michigan Examination Fees or Regulatory Fees paid in 2024.
Include these supporting documents when applicable:
- Form 4902 for recapture of certain business tax credits.
- Form 5793 for the Historic Preservation Credit.
- A copy of the state-of-incorporation tax form used to calculate the hypothetical Michigan company's tax for line 32.
- Detailed schedules of other fees and assessments for lines 39 and 44.
- Proof of payment for items reported in the Michigan column on lines 40 through 43.
- Schedule K-1 with its notes, or other supporting documentation from the electing flow-through entity, for a flow-through entity tax credit.
- The Workers' Disability Supplemental Benefit (WDSB) Certificate.
- Form 4899 if you calculate underpaid estimated-tax penalty and interest yourself. If you do not file it, Treasury will calculate those amounts.
- Bureau of Fraudulent Claims assessments for California insurers.
- A copy of the actual New York CT33 for New York-domiciled companies.
W-2G and 1099-R records may support Michigan tax withholding reported on line 51.
How to file
Before filing, register with the Michigan Department of Treasury if you are not already registered. Online registration is available at www.michigan.gov/businesstaxes. You must also obtain an FEIN before filing if you do not have one.
Complete both pages and include the applicable supporting forms and attachments. Sign and date the return. A tax preparer must provide a PTIN, FEIN or SSN, along with the preparer's business name, address and phone number.
Do not mail this return with the Michigan Annual Financial Statement. The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Using Form 4905 to amend a return. Use Form 4906 for the applicable tax year instead.
- Entering information in boxes filled with Xs. Leave those boxes empty.
- Using inconsistent or missing account numbers. Use the same FEIN on all forms and repeat it on page 2. Returns without a registered account number will not be processed until one is provided.
- Mixing up premium columns. On lines 5 through 13 and 20 through 22, report qualified health insurance policies in column A and all other policies in column B.
- Assuming the return changes your legal address. The return address is used for correspondence and refunds related to that return. To change the primary legal address in Treasury's records, file Form 163.
- Forgetting signatures or preparer details. Taxpayers must sign and date the return, and preparers must supply the required identifying and business information.
- Leaving an overpayment unallocated. Elect a refund, a credit toward the next CIT tax year, or a combination by completing lines 60 and 61 as applicable.
Questions people ask
What tax rates apply for 2024?
Qualified health insurance premiums are taxed at 0.9477%. The remaining portion of the tax base is taxed at 1.25%.
Can I use Form 4905 to correct a previously filed return?
No. Use Form 4906 for the applicable tax year and attach a separate explanation of the changes. Include all forms, schedules and attachments filed with the original return, even if unchanged. Do not include a copy of the original return.
Which year's payments belong on line 24?
For the 2024 return, use amounts paid to the listed facilities or associations from January 1 through December 31, 2023, including special assessments. Net payments against refunds received during 2023 for the same facility or association. Enter zero if refunds exceed payments. Exclude Michigan Automobile Insurance Placement Facility payments attributable to the assigned claims plan.
Can an overpayment be applied to next year's tax?
Yes. If you anticipate a CIT or retaliatory tax liability in the next filing period, you may apply some or all of the overpayment as an estimated payment on line 60. Report the remaining refund on line 61.