4975: Schedule of Corporate Income Tax Liability for an MBT Financial Filer (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 4975 calculates Corporate Income Tax (CIT) liability for a financial institution filing under the Michigan Business Tax (MBT). It reports the tax base, credits and recapture, and compares CIT liability with MBT liability to determine the greater of the two.
Who files this form
Form 4975 is for financial institutions filing under the Michigan Business Tax (MBT). It calculates Corporate Income Tax (CIT) liability and compares it with MBT liability calculated on Form 4590 to determine the greater liability.
Only taxpayers with an awarded certificated credit that has not yet been fully claimed or used may elect to be MBT taxpayers. The schedule also provides rules for unitary business groups (UBGs) of financial institutions.
What you'll need
Have these forms and records available:
- Taxpayer name and FEIN. A UBG uses its financial group's designated member name and FEIN.
- Form 4590, MBT Annual Return for Financial Institutions. Form 4975 uses its apportionment percentage, MBT liability, and refundable credit amounts.
- Form 4947. You need the certificated credit and recapture amounts from lines 11, 28, and 39.
- The applicable FFIEC regulatory report to determine equity capital. The listed reports include FR Y-9C, FR Y-9SP, and, when those are not filed for the tax year, FFIEC 031, 041, or 051.
- Worksheets A and B, when applicable. Worksheet A applies when MBT equity capital differs from the FFIEC amount. For a UBG in that situation, complete Worksheet B for each member whose equity is included in the FFIEC report before completing Worksheet A.
- Form 4752 and supporting calculations, when applicable, for a UBG whose MBT equity capital matches the FFIEC amount.
How to file
Include completed Form 4975 as part of your tax return filing. Carry the amount on Form 4975, line 17, to Form 4590, line 31.
When applicable, include Worksheet A and all required copies of Worksheet B with your MBT return.
The supplied text does not give a mailing address or instructions for mailing or e-filing.
Common mistakes
- Do not omit required worksheets. Worksheet A says to include a copy with the MBT return. Worksheet B says to include all required copies.
- Do not enter negative amounts on the worksheet lines marked for zero. Worksheet A requires zero when lines 1 through 3 are less than zero. Worksheet B gives the same reminder for lines 1 and 2.
- Do not change an overpayment to zero on Form 4975, lines 13 or 16. Those lines specifically require a negative number when the subtraction is less than zero.
- Keep UBG calculation records. The instructions for the combined-data calculation using Form 4752 say to retain a copy of all calculations.
Questions people ask
Why does an MBT filer calculate CIT liability?
Form 4975 compares the financial institution's calculated CIT liability with its MBT liability to determine the greater of the two.
What tax rate is printed on Form 4975?
Line 7 instructs you to multiply the apportioned tax base on line 6 by 0.29% (0.0029).
What does a negative amount on line 13 or line 16 mean?
A negative amount on either line represents an overpayment. The form says to enter the result as a negative number.
How do I complete line 17?
If line 13 is greater than line 16, enter the difference. If line 16 is greater than or equal to line 13, enter zero. Carry the result to Form 4590, line 31.
Which FFIEC reporting period should I use for Worksheet A?
Use the report for the period ending with the financial institution's fiscal year end, or the top-tiered parent's fiscal year end for a UBG. If no report ends on that date, use the last FFIEC regulatory report issued during that fiscal year.