5461: 2024 City of Detroit Income Tax Partnership Quarterly Estimated Return (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Form 5461 is a payment voucher for 2024 City of Detroit partnership income tax quarterly estimated payments. It identifies the partnership, its tax year and federal employer identification number (FEIN), and the payment amount.
Who files this form
Form 5461 is the quarterly estimated payment voucher for partnerships that elect to pay Detroit income tax on behalf of their partners. A partnership may make this election only if it pays for all partners subject to the tax.
Every partnership with business activity in Detroit must file an annual information return on Form 5458, even if it has no office or place of business in the city. Form 5458 is separate from this payment voucher.
Year mismatch in the printed instructions: The estimated-payment requirement refers to total 2018 estimated tax expected to exceed $100. Although this is the 2024 voucher, that sentence does not state a 2024 threshold.
When it's due
For tax year 2024 calendar-year filers, estimated payments are due on or before:
- April 15, 2024
- June 15, 2024
- September 15, 2024
- January 15, 2025
You may pay the full year's estimated tax by April 15, 2024 instead of making installments.
For fiscal-year filers using the 2024 voucher, payments are due by the 15th day of the fourth, sixth, ninth and thirteenth month following the start of the fiscal year.
If income changes and no estimated payments have been made, the instructions give these deadlines for 2024 income:
- Change during April 1 through May 31: pay by June 15, 2024.
- Change during June 1 through August 31: pay by September 15, 2024.
- Change during September 1 through December 31: pay by January 15, 2025.
To avoid amending the fourth installment voucher, the instructions allow you to file the 2024 partnership income tax return before February 2025. Under that option, you do not need to file the fourth installment voucher due January 15, 2025.
What you'll need
Have these details ready to complete the voucher:
- Partnership name and mailing address
- Federal Employer Identification Number (FEIN)
- Tax year ending date, in MM-DD-YYYY format
- Payment amount
Estimate the partnership's 2024 income. The instructions say to use its 2023 Detroit, Michigan and U.S. composite/partnership income tax returns for reference, even if they are not yet completed. Report the same tax year as on U.S. Form 1065.
For mailing, include the completed Form 5461 voucher and a check.
How to file
- Complete and detach the Form 5461 payment voucher. The voucher identifies Detroit as city code 170.
- Make your check payable to “State of Michigan - Detroit.”
- Write the partnership's FEIN and “2024 Form 5461” on the front of the check.
- Enclose the check and voucher. Do not fold or staple them.
- Mail them to:
Michigan Department of Treasury
City Tax Administration
PO Box 30813
Lansing MI 48909
Common mistakes
- Folding or stapling the payment materials. The voucher says not to fold or staple. The instructions also say not to staple the check to the form.
- Leaving identifying details off the check. Include the FEIN, tax year and “Form 5461.”
- Using a different reporting year from U.S. Form 1065. The instructions say to report the same year.
- Paying for only some taxable partners. A partnership electing to pay for its partners must pay for all partners subject to the tax.
- Ignoring earlier overpayments or underpayments. Second, third and fourth quarter payments should include any needed adjustments for previous quarters.
Questions people ask
How much should each quarterly payment be?
Each payment must approximate the partnership's tax liability for the quarter or 25% of its estimated annual liability. Later payments should account for earlier overpayments or underpayments.
What tax rates are listed?
The instructions list 2.40% for Detroit residents, 1.20% for nonresidents and 2.0% for partners that are corporations.
Do partners still need to make individual estimated payments?
If the partnership makes estimated income tax payments, partners do not need to make individual payments unless they have other income on which net Detroit income tax is expected to exceed $100.
What if income changes after the partnership has made estimated payments?
Amend the estimate on the next installment voucher. Spread the increase or decrease equally over the remaining installments.
What partner information goes with the annual return?
The annual Form 5458 should include a statement listing the names, addresses and Social Security numbers of the partners on whose behalf payments are being made.