777: Resident Credit for Tax Imposed by a Canadian Province (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 777 calculates the 2025 resident credit for tax imposed by a Canadian province. It converts Canadian income and taxes to U.S. currency, calculates Michigan tax on Canadian income, and determines the allowable credit to report on MI-1040.
Who files this form
Form 777 is for Michigan residents claiming the resident credit for tax imposed by a Canadian province for tax year 2025. Include it with your MI-1040 return.
What you'll need
Have these forms and details available to complete Form 777:
- Your MI-1040, including adjusted gross income, additions, subtractions and exemption allowance.
- Your Canadian income tax return, including total income from line 15000, federal tax from line 42000 and provincial tax from line 42800.
- Your Canadian T-4, including fringe benefits in Box 14 that are not taxable in the U.S. and Canadian Pension Plan contributions from Boxes 16 and 17.
- U.S. Form 1040, Schedule 1, lines 11 through 23 and 25, for adjustments to Canadian wages.
- U.S. Form 1040, Schedule 3, line 1, for the Canadian portion of the credit claimed, excluding carryovers.
- All U.S. Forms 1116 for Canadian income amounts used on lines 29b and 29c.
- Your name as shown on MI-1040, home address, full Social Security number and spouse’s full Social Security number.
How to file
Include Form 777 with your MI-1040 return. Type or print in blue or black ink.
- Complete Part 1 to convert Canadian wages and taxes to U.S. currency.
- Complete Part 2 to calculate Michigan tax.
- Complete Part 3 to calculate the allowable credit.
- Enter the provincial tax from line 31 on MI-1040, line 18a.
- Enter the credit from line 32 on MI-1040, line 18b.
The form does not provide a mailing address or e-filing instructions.
Common mistakes
- Forgetting to include Form 777 with your MI-1040. The form repeats this reminder at the bottom.
- Using ink other than blue or black. The form says to type or print in blue or black ink.
- Entering a name that does not match MI-1040. Use the filer’s name or names as shown on that return.
Questions people ask
What currency conversion rate does the 2025 form use?
The form uses 71.57% (0.7157) to convert the specified Canadian income, taxes and pension contributions to U.S. currency.
How is the final credit determined?
Line 32 is the smallest of line 27, line 30 or line 31. Enter that amount on MI-1040, line 18b.
Do I include carryovers in the federal credit amount on line 29a?
No. Line 29a asks for the Canadian portion of the credit claimed on U.S. Form 1040, Schedule 3, line 1, excluding carryovers.
Where do Canadian Pension Plan contributions go?
Enter contributions from T-4 Boxes 16 and 17 on line 12. Multiply that amount by 0.7157 on line 13. Line 13 is included in the total tax paid in Canada on line 28.