MI-1041 Schedule NR: Michigan Fiduciary Nonresident Schedule (2025)
Michigan · Michigan Treasury · Used for tax years 2025
The 2025 Michigan MI-1041 Schedule NR computes income attributable to Michigan for nonresident estates and trusts. It allocates income and deductions between Michigan and other states and calculates income taxable to the fiduciary.
Who files this form
Nonresident estates and trusts must include the 2025 MI-1041 Schedule NR with Form MI-1041. This schedule calculates the income attributable to Michigan.
What you'll need
Have the estate’s or trust’s name, Federal Employer Identification Number (FEIN), and U.S. Form 1041 available. Include all applicable federal schedules.
Depending on the income and deductions reported, you may also need:
- MI-1041D: Complete this before reporting capital gains or losses on line 4.
- MI-1040H, Schedule of Apportionment: Complete and include it if business activity is conducted in Michigan and another state.
- U.S. Form 4797 and MI-4797: Complete MI-4797 before line 7 when the conditions in the line 7 instructions apply.
- ESBT Tax Worksheet: Submit a copy with the Michigan return if reporting federal taxable income of an Electing Small Business Trust on line 8.
- MI-461: Use line 10 for the excess business loss reported on line 8.
- 2025 Michigan Schedule FTE (Form 6072): Use the applicable amounts for the flow-through entity tax adjustments described for lines 8 and 15b.
- Supporting documentation: Include documentation for each adjustment on line 15b.
- U.S. Form 8995 or 8995-A: Include it for the qualified business income deduction on line 20.
How to file
Include Schedule NR with Form MI-1041, along with all applicable federal schedules and any other required attachments.
For lines 1 through 23, enter the corresponding federal amounts in column A, Michigan’s portion in column B, and the non-Michigan portion in column C, following the line-specific instructions.
Enter the income taxable to the fiduciary from Schedule NR, line 28, on MI-1041, line 12.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Reporting a gain on line 24: Enter the Michigan capital loss as a positive number. Do not enter a number if MI-1041D, line 15B, is a capital gain.
- Using the wrong sign on line 27: Enter the Michigan capital loss as a positive number.
- Replacing a negative amount with zero on line 26: If the result is less than zero, enter it as a negative number, not “0.”
- Including flow-through entity taxes on line 25: Do not include the allocated share of Michigan flow-through entity taxes paid and deducted on the entity’s federal return.
- Putting the specified flow-through entity adjustments in column A: For the adjustments described on lines 8 and 15b, enter the calculated result as a negative number in column B and a positive number in column C. Do not enter an amount in column A.
- Leaving out support for line 15b: Include documentation for each adjustment.
Questions people ask
What do columns A, B, and C mean?
Column A is the total, column B is the Michigan portion, and column C is the non-Michigan portion.
Which income belongs in the Michigan column?
The instructions list income earned, received, or acquired in Michigan; income from personal services performed in Michigan; income from real or tangible personal property located in Michigan; income from a business conducted in Michigan; and income of an Electing Small Business Trust.
Which income is not subject to Michigan tax for a nonresident estate or trust?
The instructions list annuities, retirement and pension income, nonbusiness interest, nonbusiness dividends, and income from a business, trade, profession, or occupation not conducted in Michigan. Enter these amounts in column C on lines 1 through 8.
What if the business operates in Michigan and another state?
Complete and include MI-1040H, Schedule of Apportionment, to apportion the business income.
Where does the final taxable income amount go?
Subtract line 27 from line 26. Enter the result on Schedule NR, line 28, and on MI-1041, line 12.