807: Composite Individual Income Tax Return (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 807 is the 2024 Composite Individual Income Tax Return for partnerships, S corporations and other flow-through entities. It reports Michigan income attributable to participating members, calculates their tax, and accounts for credits and payments to determine tax du
Who files this form
Filing Form 807 is optional. A flow-through entity may file this collective individual income tax return for two or more nonresident members who elect to participate. It is not an entity-level tax return.
Each participating nonresident ultimate owner must:
- Be subject to Michigan individual income tax.
- Not have been a full-year or part-year Michigan resident.
- Agree to claim only one Michigan exemption.
- Not have a federal excess business loss limitation.
- Not be a C corporation or an entity that files federally as a C corporation.
An intermediate flow-through entity may participate only if the filer can provide the required Tiered Structure Schedule identifying participating ultimate owners. It cannot participate if it elected to pay Michigan flow-through entity tax and paid that tax on a non-electing entity’s income.
Use the 2024 form only for a tax year ending in 2024.
When it's due
- 2024 composite return: Due April 15, 2025, for any tax period ending in 2024.
- 2024 extension request: File Michigan Form 4 on or before April 15, 2025, and pay the remaining estimated annual tax liability. An extension gives more time to file, not more time to pay. Michigan Form 4 is required even if the entity files a federal extension.
- 2025 estimated payments for calendar-year entities: Due April 15, 2025; June 16, 2025; September 15, 2025; and January 15, 2026. Use Form MI-1041ES.
- Tax periods ending in 2025: The printed instructions state that the return is due April 15, 2026. Do not use the 2024 form for those periods.
What you'll need
Include the following with the return, as applicable:
- A five-page copy of U.S. Form 1065 or U.S. Form 1120S.
- Michigan Schedule of Apportionment, Form MI-1040H.
- Schedule A for participants, Schedule B for nonparticipants who are not Michigan residents, and Schedule C for Michigan residents.
- A Tiered Structure Schedule for participating intermediate flow-through entities.
- A statement signed by an authorized officer or general partner certifying that each participant was informed of the program’s terms and conditions.
- Supporting documentation for the flow-through entity tax credit.
- A copy of Form 4 if an extension was requested.
Also include supporting statements, schedules, or calculations required for the additions, subtractions, allocated income, net operating loss deduction, and partner retirement-plan deductions you claim.
Have each member’s name, address, FEIN or SSN, and Michigan income information available for the schedules. The signing partner or officer must have power of attorney from each participant.
For an amended return, include a statement explaining the changes and all applicable schedules and supporting documentation. A copy of the original return is not needed.
How to file
Type or print clearly in blue or black ink. Complete Schedule A and, if applicable, Schedules B and C before continuing to line 15. Complete the return, attach the required documents, and sign it. Paid preparers must also sign and provide their preparer tax identification number.
If the filer elected to pay Michigan flow-through entity tax, it must file that annual return and pay any tax due before filing the composite return.
Mail the completed return to:
Michigan Department of Treasury
P.O. Box 30058
Lansing, MI 48909
Make any check payable to State of Michigan. Write the entity’s FEIN, “Composite Return”, and the tax year on the check. Send payment for this return only. If payment was not submitted with the return, use Form MI-1041-V. No payment is required if the balance due is less than $1.
To amend a return, file Form 807 and check the Amended Return box at the top of page 1.
Common mistakes
- Using the wrong year’s form: Do not use the 2024 form if the entity’s tax year ends in another year.
- Including ineligible participants: Michigan residents and individuals subject to a federal excess business loss limitation may not participate. At least two participating nonresident members are required.
- Treating an extension as extra time to pay: The remaining estimated annual tax liability must be paid with Form 4.
- Claiming the wrong flow-through entity tax credits: Include only credits generated by the entity filing this composite return, not credits from other electing entities. Tell participants not to claim the credit reported here on another income tax return.
- Taking disallowed subtractions: Charitable contributions and other federal Schedule A itemized deductions are not allowed as subtractions. Do not adjust for bonus depreciation.
- Including nonparticipants in composite estimated payments: Do not submit Form MI-1041ES payments for members who are not participating.
- Forgetting signatures: Sign the return and obtain the required paid-preparer signature, if applicable.
Questions people ask
Will participating replace my Michigan individual return?
Participation eliminates the need for an individual ultimate owner to file Form MI-1040 when that owner has no other Michigan-sourced income. If an MI-1040 is still required, the owner claims their share of tax paid on the composite return as withholding.
Is this the same as a Michigan flow-through entity tax return?
No. The two returns are separate. A flow-through entity tax return does not satisfy members’ filing obligations. An electing entity must file its flow-through entity tax annual return and pay any tax due before filing the composite return.
Can an overpayment be applied to next year’s estimated tax?
Yes. Line 28 lets the filer apply part or all of the 2024 overpayment to 2025 estimated tax. The remainder is entered as a refund on line 29. Treasury does not refund amounts less than $1.
Who receives refunds and notices?
Treasury sends refund checks, assessments, and correspondence to the filer at the address on the return. The filer is responsible for resolving issues and paying any additional tax, interest, and penalties finally determined. Treasury may also need to contact participants.