5462: 2024 City of Detroit Income Tax - Estates and Trusts (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Form 5462 is the 2024 City of Detroit income tax return for estates and trusts. It reports Detroit income, adjustments, tax, payments and credits, and any payment due or refund. Its Schedule G reports income distributable to resident beneficiaries.
Who files this form
An estate or trust that must file U.S. Form 1041 must also file Detroit Form 5462 if its gross Detroit taxable income exceeds the applicable amount:
- Estate: more than $600.
- Simple trust: more than $300. A simple trust is required to distribute all its income currently.
- Complex trust: more than $100.
A business trust that files as a corporation with the IRS and is doing business in Detroit must file Detroit Form 5297 instead.
When it's due
For tax year 2024, the front of Form 5462 says the return is due April 15, 2025. However, the instructions included with this 2024 form say April 15, 2024. The supplied text contains conflicting due dates.
The instructions say that if a due date falls on a Saturday, Sunday or holiday, the due date is the next business day. For assistance, they list 517-636-5829.
What you'll need
Gather the estate’s or trust’s FEIN, address, return type and tax-year information, along with:
- A copy of U.S. Form 1041.
- Federal schedules supporting Detroit income reported on lines 9 through 12. Include Federal Schedule C for each business conducting activity in Detroit and schedules supporting Detroit property gains or losses.
- Beneficiary information for Schedule G: resident beneficiaries’ names, Social Security numbers or FEINs, and amounts distributable. Attach a similar schedule if more space is needed.
- Documents showing Detroit tax withheld. Attach copies of all documents supporting line 21.
- Payment information: 2024 estimated payments, prior-year overpayments carried forward and payments made with an extension request.
If applicable, also include:
- Federal Schedule K-1 and Form 8582 for the estate’s or trust’s share of partnership losses from Detroit activities.
- A separate schedule of other income exclusions or adjustments, if needed, and Schedule 5 if excluding or adjusting reported ordinary gain or loss.
- A Detroit Renaissance Zone approval letter or certificate when claiming that deduction.
For an amended return, attach an explanation and all forms and documents filed with the original return, even if unchanged. Do not include a copy of the previous return.
How to file
Complete Form 5462, attach the required supporting documents, and sign and date the return. Complete Schedule G for resident beneficiaries when income is distributed, and carry its total to line 14.
Mail all returns to:
Michigan Department of Treasury
City Tax Administration
PO Box 30813
Lansing MI 48909
If line 24 shows tax due, include a check or money order payable to “State of Michigan - Detroit.” Write the taxpayer’s FEIN, tax year and “Form 5462” on the check. Do not staple the check to the return.
Keep a copy of the return and all supporting schedules for six years.
To amend a return, check the amended-return box at the top of page 1 and complete the entire return using corrected information. Attach the required explanation and supporting documents.
Common mistakes
- Forgetting to sign and date the return. The printed reminder requires both.
- Leaving out preparer details. Preparers must provide a PTIN, FEIN or SSN, plus a business name, business address and phone number.
- Using inconsistent FEINs. Use the same account number on all Detroit forms for the estate or trust, and repeat the FEIN at the top of page 2.
- Stapling the check to the return. The form specifically says not to do this.
- Treating a filing extension as extra time to pay. The instructions warn that an extension to file is not an extension to pay. Interest is due on an unpaid amount if the extension payment is insufficient.
- Reporting gains or deducting losses from intangible assets. The instructions note that gains and losses from assets such as stocks and bonds are neither taxed nor deductible on the estate’s or trust’s Detroit return.
Questions people ask
What tax rate and exemptions does the form use?
Line 20 applies a 1.2% tax rate to the income subject to tax on line 19. Line 16 allows an exemption of $600 for an estate, $300 for a simple trust or $100 for a complex trust.
Do I need to complete Schedule G?
Schedule G is for resident beneficiaries only. The instructions say it must be completed if any income is distributed; otherwise, it is not necessary. Carry the total from Schedule G, line 16, to Form 5462, line 14.
Can I request an extension?
Yes. File Form 5463 and send payment of the estimated tax liability. Treasury may grant a six-month filing extension and does not send an approval notice. The extension does not extend the time to pay. Report the extension payment on Form 5462, line 22.
What can I do with an overpayment?
You may request a refund of all or part of it, apply all or part to the next tax year, or split it between those options. Complete lines 25, 26 and 27 as applicable.
How do Detroit resident beneficiaries report their income?
Resident beneficiaries report their distributable income on Detroit Form 5118 in the same manner and amounts as on their federal return. They should attach U.S. Schedule K-1 and the fiduciary’s letter explaining Detroit income or adjustments.