17616: MI - Flow Through Entity Tax

The Michigan flow-through entity tax is enacted for tax years beginning on and after January 1, 2021. Per the MI website, this tax "allow[s] certain flow-through entities to elect to file a return and pay tax on income in Michigan and allows members or owners of the entity to claim a refundable tax credit equal to the tax previously paid on that income."

Michigan does not support filing through software vendors at this time, and so the forms are not available in Drake Tax. The FTE tax and forms are required to be filed online through the Michigan Treasury Online website. 

For more information, see the MI Website page Flow-Through Entity Tax.

If an individual is eligible for a credit for their allocated share of of tax paid by an electing flow-through entity, an entry can be made on MI > Screen 1 > line 29.