Michigan 1997 MI-1040EZ Income Tax Return form.

Problem Description:

The image provided is a Michigan Income Tax Easy Return (MI-1040EZ) form for the year 1997. The task is to explain how to fill out this form step by step, focusing on the key sections and calculations required.

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Solution Explanation:

#### Step 1: Understanding the Form
The MI-1040EZ is designed for individuals who are single or married filing jointly, have no dependents, are not claiming any credits, and are filing a U.S. 1040EZ. It simplifies the tax filing process by reducing the number of calculations and entries needed.

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#### Step 2: Filling Out Personal Information
1. Section 1–4: Enter your personal information.
- Line 1: File's First Name, Middle Initial, and Last Name.
- Line 2: File's Social Security Number.
- Line 3: Spouse's Social Security Number (if applicable).
- Line 4: Home Address, City/Town, State, ZIP Code, and School District Code.

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#### Step 3: State Campaign Fund Contribution (Optional)
2. Section 5: Decide if you want to contribute $3 to the Michigan State Campaign Fund.
- Check "Yes" or "No" under "You" or "Spouse."
- This does not affect your tax liability or refund.

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#### Step 4: Dependency Status (Line 6)
3. Line 6: Determine if you or your spouse can be claimed as a dependent by someone else.
- If yes, check the box next to "You" or "Spouse."
- This affects the amount you enter on Line 8.

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#### Step 5: Exemption Allowance (Line 8)
4. Line 8: Enter the exemption allowance based on dependency status:
- If single and AGI < $1,500, or if married filing jointly and AGI < $3,000:
- Enter $1,000 if you or your spouse checked Line 6.
- Otherwise, enter $2,500.
- If married filing jointly:
- Enter $5,000 if neither you nor your spouse checked Line 6.
- Enter $3,500 if only one of you checked Line 6.
- Enter $2,000 if both of you checked Line 6.

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#### Step 6: Calculating Taxable Income (Line 9)
5. Line 9: Subtract the exemption allowance (Line 8) from your Adjusted Gross Income (AGI) from the U.S. 1040EZ, Line 4.
- Formula:
\[
\text{Taxable Income} = \text{AGI (Line 7)} - \text{Exemption Allowance (Line 8)}
\]

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#### Step 7: Calculating Michigan Income Tax (Line 10)
6. Line 10: Multiply the taxable income (Line 9) by the Michigan state tax rate of 4.4% (0.044).
- Formula:
\[
\text{Michigan Income Tax} = \text{Taxable Income (Line 9)} \times 0.044
\]

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#### Step 8: Subtracting Local Taxes Paid (Line 11a)
7. Line 11a: Enter the amount of income tax paid to Michigan cities.
- This reduces your total tax liability.

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#### Step 9: Calculating Your Tax Liability (Line 12)
8. Line 12: Subtract the local taxes paid (Line 11b) from the Michigan income tax calculated (Line 10).
- Formula:
\[
\text{Your Tax Liability} = \text{Michigan Income Tax (Line 10)} - \text{Local Taxes Paid (Line 11b)}
\]

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#### Step 10: Voluntary Contributions (Lines 13–15)
9. Lines 13–14: Optionally, make voluntary contributions to specific funds (e.g., CTF Logo, Fight Child Abuse, Help Endangered and Nongame Wildlife).
- Enter the amount in the respective boxes.
- Total these contributions on Line 15.

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#### Step 11: Adding Contributions to Tax Liability (Line 16)
10. Line 16: Add the total voluntary contributions (Line 15) to your tax liability (Line 12).
- Formula:
\[
\text{Total Amount Due} = \text{Your Tax Liability (Line 12)} + \text{Voluntary Contributions (Line 15)}
\]

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#### Step 12: Michigan Tax Withheld (Line 17)
11. Line 17: Enter the amount of Michigan tax withheld from your wages (from your W-2 form).
- Attach a copy of your W-2 form.

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#### Step 13: Determining Refund or Amount Due
12. Lines 18–19:
- Line 18: If the tax withheld (Line 17) is less than the total amount due (Line 16), subtract Line 17 from Line 16 and enter the amount due on Line 18.
- Line 19: If the tax withheld (Line 17) is more than the total amount due (Line 16), subtract Line 16 from Line 17 and enter the refund amount on Line 19.

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#### Step 14: Direct Deposit of Refund (Lines 20–23)
13. Lines 20–23: If you want your refund sent directly to your bank account:
- Enter your routing transit number (RTN), name of the financial institution, account number, and type of account (Checking or Savings).

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#### Step 15: Signature and Declaration
14. Bottom Section: Sign and date the form.
- Declare under penalty of perjury that the information is true and complete.
- Provide your preparer's signature, address, phone, and ID number if applicable.

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Final Answer:

The form requires filling out personal information, calculating taxable income, determining tax liability, accounting for voluntary contributions, and reconciling tax withheld with the total amount due. The final result will indicate whether you owe additional tax (Line 18) or are entitled to a refund (Line 19).

\boxed{\text{Follow the steps above to complete the form accurately.}}