5458: City of Detroit Income Tax Partnership Return (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Form 5458 is the 2024 City of Detroit Income Tax Partnership Return. It reports partnership income and deductions, partner information, and, when used to pay tax on behalf of partners, tax, payments, credits, and any amount due or refund.
Who files this form
Form 5458 is the City of Detroit Income Tax Partnership Return for tax year 2024. It allows a partnership to file an information-only return or pay tax on behalf of its partners.
- A partnership may pay tax for partners only if it pays for all partners subject to the tax.
- A partner who has income in addition to partnership income must also file an individual return and report the partnership income, deductions and credits specified on this form.
- By signing a composite return, the signing partner or officer declares that the filer has power of attorney from each participant to file on that participant’s behalf.
When it's due
For tax year 2024, the form states that the return is due April 15, or on or before the 15th day of the fourth month after the close of the tax year.
What you'll need
Have the information needed to complete the return ready:
- Partnership name, FEIN, mailing address, business start date, number of partners and number of employees on December 31, 2024.
- Each partner’s name, Social Security number, home address and residency status, including residency dates for part-year residents.
- Records of partnership income, expenses, inventory, partner payments and each partner’s share of income.
- Records of estimated payments, prior-year credit carried forward, extension payments and other credits claimed.
- Property values, rent, employee compensation and sales or service receipts for Detroit and everywhere, if completing Schedule D.
Attach supporting items when applicable:
- A computation schedule for every deduction entered in line 11a, column 2.
- An explanation of other credits on line 15.
- The explanations, summaries and statements requested by Schedule C for inventory differences, other costs, business property losses and other business expenses.
- Complete computations and a copy of the approval letter if using a special apportionment formula authorized by the Finance Director.
- A separate page 5 calculation for each nonresident partner who performed part of their services in Detroit.
How to file
- Choose either Information only or Payment on behalf of all Partners.
- Complete Schedules B, C, D and E before transferring each partner’s total income from Schedule E to line 11a, column 1. For an information-only return, complete pages 3, 4 and 5 and column 1; columns 2 through 6 are not needed.
- Complete the applicable tax, payment and refund lines, and sign the return on page 2.
- Mail all returns to:
Michigan Department of Treasury
City Tax Administration
PO Box 30813
Lansing MI 48909
If paying with the return: Pay the amount on line 17. Make the check payable to “State of Michigan - Detroit.” Write the taxpayer’s FEIN, the tax year and “Form 5458” on the front of the check. Mail it with the completed return, but do not staple it to the return.
Common mistakes
- Claiming the same exemption twice. A partner cannot claim an exemption here if that same exemption is claimed on another partnership or personal return.
- Paying for only some taxable partners. The partnership may pay tax for partners only if it pays for all partners subject to the tax.
- Including partner payments with employee labor costs. Schedule C says not to include payments to partners on lines 8 or 17. Partner salaries and interest belong on line 18 and Schedule E, column 4.
- Reporting payments and credits that do not match. Line 16 must agree with the total of line 11b, column 6.
- Using the wrong Schedule D method when all locations are in Detroit. The printed note says to transfer line 1c to line 3a, line 1d to line 3b and line 1e to line 3c, and ignore the face-of-the-form instructions for those three lines.
- Stapling the check to the return. The payment directions specifically say not to do this.
Questions people ask
What if the partnership has more than five partners?
Complete additional copies of line 10, line 11a, line 11b and Schedule E, or attach a separate document containing the required information for all partners. Complete the rest of Form 5458 using totals for all partners.
What tax rates does the form use?
Line 11b applies 2.4% to resident taxable income and 1.2% to nonresident taxable income.
Can an overpayment be applied to next year?
Yes. You may request a refund of all or part of an overpayment, apply all or part to next year’s estimated tax, or split it between the two. Enter the amount carried forward on line 19 and the refund amount on line 20.
How do I amend a return?
Check the amended-return box at the top of page 1 and complete the entire return using corrected information. Attach a statement explaining the reason for the amendment and all forms and documents filed with the original return, even those not being changed. Do not include a copy of the previous return. If a refund was issued on the previous return, include that refund in the total on line 14.