MI-W4 allowances?how does it work?

Answer 1

As a tax preparer and resident of Michigan, I'd like to help you out. What you claim on the W-4 form generally is the same as the federal. However, on the federal level, some claim more because of itemized deductions. On Michigan, some claim more because of the homestead credit. Best way to handle everything is the claim the exact number of exemptions you will have on your Michigan return. "Extra" amount for the ages of children, tax credits for donating to homeless shelters, food banks, public TV and radio, etc. could be considered "bonus" money to reduce your tax liability or give you more of a refund.

Keep in mind our wonderful elected representatives are currently voting to increase taxes. So, budget yourself some more because they can't get their act together to budget themselves.

You know what really grinds me---the 10 cents can/bottle refunds. It just recently occurred to them that other states have been cashing in on us. Well, duh!! They claim we lose about $10 million a year on can returns. Even Seinfeld had an episode on that--or is Seinfeld to high on the brain mountain for them to understand this. Now, they are wanting Pepsi, Coca-Cola, beer manfuacturers, etc. to make special bar codes. Why should they have to accomodate Michigan? Why can't Michigan say "Hey everyone--you have 'til Dec. 31 to get your can and cans into a store and cash them in. After that--it's 5 cents--no matter when you bought them. " That would be to easy-wouldn't it?

I prepare a tax return for a police officer in St. Clair Shores. He told me about a guy on food stamps buying pop, then turning around and putting the cans-filled with pop--in the machines so he could get the cash. Our tax dollars at work.

Sorry I went off on a tangent. It's Sunday and the Lions don't play until 4:00. Ain't got nothing else to do except moan about Michigan. Last one out, turn off the lights!!

Take care--Go Lions!!