807: Composite Individual Income Tax Return (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 807 is the 2025 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 its participating ultimate owners. It cannot participate if it elected to pay Michigan flow-through entity tax and paid tax on a non-electing entity’s income.
Use the 2025 form only when the entity’s tax year ends in 2025.
When it's due
- 2025 composite return: Due April 15, 2026, for tax periods ending in 2025.
- Extension for the 2025 return: File Michigan Form 4 on or before April 15, 2026. Remit the remaining estimated annual tax liability with Form 4. An extension gives more time to file, not more time to pay. A Michigan extension is required even if the entity files a federal extension.
- 2026 estimated payments for calendar-year entities: Due April 15, 2026; June 15, 2026; September 15, 2026; and January 15, 2027. Use Form MI-1041ES.
What you'll need
Include the following with the return, as applicable:
- A copy of U.S. Form 1065 or U.S. Form 1120S, five pages.
- Michigan Schedule of Apportionment, Form MI-1040H.
- Completed Schedule A for participants, Schedule B for nonparticipants, 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 has been 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.
Have each participant’s name, address, FEIN or SSN, and income and tax information available. The signing partner or officer must have power of attorney from each participant.
Include supporting statements or schedules for applicable additions, subtractions, income from other Michigan entities, net operating loss deductions, and SEP, SIMPLE or qualified plan deductions. Use the Participants’ Total Income Worksheet to determine the amount for line 47.
How to file
Type or print clearly in blue or black ink. Complete the applicable schedules, sign the return, and include the required attachments.
Mail completed returns to:
Michigan Department of Treasury
P.O. Box 30058
Lansing, MI 48909
Make your check payable to “State of Michigan.” Write the filing 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 to make the payment.
If the entity elected to pay Michigan flow-through entity tax, it must file that annual return and pay any tax due before filing the composite return.
The partner or officer signing Form 807 declares that the filer has power of attorney from each participant. Paid preparers must also sign and provide their preparer tax identification number.
Common mistakes
- Using the wrong year’s form: Do not use the 2025 form if the entity’s tax year ends in another year.
- Including ineligible participants: Michigan residents, C corporations, and individuals subject to a federal excess business loss limitation cannot participate. At least two participating nonresident members are required.
- Treating an extension as extra time to pay: It extends only the filing deadline. File Michigan Form 4 even if a federal extension was filed.
- Claiming the wrong flow-through entity tax credits: Include only credits generated by the entity filing this composite return, not credits generated by other electing entities. Tell participants not to claim the credit reported on this return on another income tax return.
- Subtracting federal itemized deductions: Charitable contributions and other amounts reported as itemized deductions on U.S. Schedule A are not allowed as subtractions in determining Michigan taxable income.
- Sending estimated payments for nonparticipants: Do not use Form MI-1041ES to submit payments for members who are not participating in the composite return.
- Forgetting the signature: Sign the return before submitting it.
Questions people ask
Will participating replace my separate Michigan individual return?
Participation eliminates the need for an individual ultimate owner to file Form MI-1040 when they have no other Michigan-sourced income. If a separate MI-1040 is still required, the owner claims their share of tax paid on the composite return as withholding.
What tax rate does the 2025 composite return use?
Multiply taxable income on line 21 by 4.25% to calculate the tax on line 22.
How do I amend a composite return?
File Form 807 and check the Amended Return box at the top of page 1. Include a statement explaining the reasons for the amendment and all applicable schedules and supporting documentation. You do not need to include a copy of the original return.
When are 2026 estimated payments required?
Use one Form MI-1041ES each quarter for all participants whose share of annual income tax liability is expected to exceed $500 after exemptions and credits. Use the name and FEIN of the entity that will claim those payments on its composite return.
Who receives refunds and correspondence?
Treasury sends refund checks, assessments, and correspondence to the filer at the address on the return. The filer must agree to be responsible for additional tax, interest, and penalties as finally determined. Treasury may also need to contact participants.