4946: Schedule of Corporate Income Tax Liability for a Michigan Business Tax Filer (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 4946 is a schedule for Michigan Business Tax filers to calculate corporate income tax liability and compare it with Michigan Business Tax liability. It reports sales apportionment, business income adjustments, credits, and credit recaptures.
Who files this form
The 2025 Form 4946 is a Corporate Income Tax (CIT) liability schedule for a Michigan Business Tax (MBT) filer. It calculates CIT liability and compares it with MBT liability.
The form does not state detailed requirements for which MBT filers must complete it.
What you'll need
Have your taxpayer name, Federal Employer Identification Number (FEIN), and the records needed for the applicable lines, including:
- Michigan sales and total sales.
- Federal Form 1120 taxable income. The form directs non-C corporations to consult instructions, which are not included in the supplied text.
- Business income additions, subtractions, depreciation adjustments, and applicable loss carryforwards.
- Form 4947, lines 11, 28, and 39, for certificated credits and credit recapture.
- Form 4567, line 57, for total MBT liability after recapture.
- Form 4574, line 23, for refundable credits.
Common mistakes
- Do not complete line 5. It is no longer in use; skip to line 6.
- Enter zero on line 1 if you have no Michigan sales.
- Enter zero on line 9 unless you are reporting Unitary Business Group eliminations.
- Enter any federal net operating loss carryback or carryover on line 13 as a positive number.
- Follow each line’s directions for negative amounts. Lines 26 and 31 require zero when the result is negative, while lines 35 and 38 require the negative amount.
- Carry the amount from line 39 to Form 4567, line 58.
Questions people ask
How do I calculate the apportionment percentage?
Divide Michigan sales on line 1 by total sales on line 2. Enter the percentage on line 3.
What tax rate does the schedule use?
Line 27 multiplies line 26 by 6% (0.06). If apportioned or allocated gross receipts are less than $350,000, the form directs you to enter zero on line 27.
What does a negative amount on line 38 mean?
A negative amount on line 38 represents an overpayment. Line 38 is MBT liability after refundable credits.
How do I complete line 39?
If line 35 is greater than line 38, enter the difference. If line 38 is greater than or equal to line 35, enter zero. Carry the result to Form 4567, line 58.