5889: Report of Oil, Gas and Nonferrous Metallic Minerals Extraction - Income and Expenses (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 5889 reports income and expenses related to Michigan oil and gas production and nonferrous metallic minerals extraction. Totals are carried to Michigan Schedule 1 for individual filers or Form MI-1041 for estates and trusts.
Who files this form
Complete Form 5889 if you are eliminating income or expenses from Michigan oil, gas, or nonferrous metallic minerals extraction on your Michigan return. The income and expenses must relate to production or extraction subject to Michigan Severance Tax.
- Deduct the applicable income to the extent it was included in adjusted gross income (AGI).
- Add back related expenses to the extent they were deducted in arriving at AGI.
Individual filers carry the totals to Michigan Schedule 1. Fiduciary filers carry them to Form MI-1041.
What you'll need
Supply supporting documentation for the amounts claimed. Attach the following federal forms and schedules that substantiate your reported amounts, as applicable:
- U.S. Form 1040 Schedules B, C, D, E, and F.
- U.S. Form 4797.
- Schedules K-1, including the K-1 notes.
- Any other applicable supporting documentation.
Attach a schedule for other income reported on line 5 or other expenses reported on line 18.
You will also need the individual filer's name and full nine-digit Social Security number, or the estate or trust's name and full Federal Employer Identification Number (FEIN).
How to file
Include Form 5889 with your MI-1040 or MI-1041 and attach supporting documentation.
- Enter the filer's name and identifying number at the top.
- Report income on lines 1 through 5 and expenses on lines 8 through 18 using the corresponding federal schedule information. Use column A for Schedule C, B for Schedule E Part I, C for Schedule E Part II, and D for other schedules.
- Add lines 1 through 5 within each column on line 6. Add the line 6 column totals on line 7, then carry that total to Michigan Schedule 1, line 19, or MI-1041, line 38.
- Add lines 8 through 18 within each column on line 19. Add the line 19 column totals on line 20, then carry that total to Michigan Schedule 1, line 6, or MI-1041, line 33.
The provided text does not give a mailing address or e-filing instructions.
Common mistakes
- Leaving out supporting documents. The form asks you to supply documentation for amounts claimed, including schedules for other income and other expenses.
- Using separate Forms 5889 for multiple businesses. Combine applicable income and expenses from all businesses on one Form 5889.
- Entering an incomplete identifying number. Individuals must enter their full nine-digit Social Security number. Fiduciary filers must enter the estate or trust's full FEIN.
- Leaving Form 5889 out of the return. Include it with your MI-1040 or MI-1041.
Questions people ask
Do I need a separate Form 5889 for each business?
No. Combine applicable income and expenses from all businesses on one Form 5889.
Where do I carry the totals from Form 5889?
Carry total income from line 7 to Michigan Schedule 1, line 19, or MI-1041, line 38. Carry total expenses from line 20 to Michigan Schedule 1, line 6, or MI-1041, line 33.
Does this form cover nonferrous metallic minerals extraction?
Yes. The instructions require taxpayers to eliminate income and expenses from nonferrous metallic minerals extraction subject to Michigan Severance Tax, to the extent the income was included in AGI and the expenses were deducted in arriving at AGI.
Where can I find more guidance?
The instructions point to Revenue Administrative Bulletin 2018-8 for detailed guidance on eliminating oil and gas income and expenses. They also direct taxpayers to www.michigan.gov/taxes for additional information about nonferrous metallic minerals subject to Michigan Severance Tax.