Austin & Larson Tax Resolution
Tax Attorneys
Resolve Your Tax Debt Today! Complete Tax Relief Services
Tax Debt is Often Intimidating Frustrating Confusing Embarrassing Stressful
… But it Doesn’t Have to Be
Who We Are | Michigan’s Trusted Tax Resolution Specialists
We are a full-service tax debt resolution company that specializes in resolving tax debt for individuals and business owners who are facing tax related issues with the IRS or State of Michigan. We are a local, Michigan based firm and have offices in Brighton, Saginaw, Lansing, & Jackson where we can meet in person to discuss and resolve your tax debt. Our tax relief firm is comprised of IRS Enrolled Agents, Accountants CPAs, and Tax Attorneys who are passionate about assisting taxpayers with resolving their tax liabilities.
At Austin & Larson Tax Resolution, we know dealing with tax authorities can be intimidating and time-consuming. If you have a tax issue with the State of Michigan or the IRS, we’re here to help. Our mission is to get you the best tax debt resolution with as little headache for you as possible. No matter the size of the tax debt, our team at Austin & Larson Tax Resolution is here to provide you with the tax help you need. Reach out for a free consultation to begin resolving your tax debt today!
Estimated Tax Form: A Comprehensive Guide
Estimated tax payments are essential for Michigan taxpayers who earn income that isn’t subject to withholding, such as self-employment income, dividends, or rental property earnings. To stay compliant, the MI-1040ES form is used to calculate and submit quarterly payments. Here’s what you need to know about the Michigan Estimated Tax Form 2023.
What Is the Michigan Estimated Tax Form?
The MI-1040ES is the official form used by Michigan residents to submit their estimated tax payments for income that is not automatically withheld. It’s designed for individuals who expect to owe more than $500 in taxes for the year and want to avoid a large lump-sum payment at the end of the year, as well as the associated penalties.
If you’re self-employed, work as a freelancer, or have investment income, you are required to make quarterly payments to both the state and federal government. The MI-1040ES form helps you calculate your state tax liability and divide it into manageable quarterly payments.
Who Needs to File the MI-1040ES?
You should file the MI-1040ES if:
- You expect to owe $500 or more in state taxes that are not covered by withholding.
- Your income comes from sources like self-employment, dividends, interest, rental income, or other earnings without tax withholding.
- You had a tax liability in the previous year and expect a similar situation this year.
If your income is from wages where taxes are automatically withheld, or you expect to owe less than $500, you likely do not need to file estimated taxes.
Key Components of the Michigan Estimated Tax Form
When filling out the MI-1040ES form, you’ll need to include detailed information about your expected income, deductions, and credits. Here’s a breakdown of what you’ll need to complete the form:
- Estimated Income: Begin by calculating your expected total income for the year, including earnings from all sources, such as wages, self-employment, or investments.
- Deductions and Credits: Deduct any eligible expenses such as mortgage interest, charitable contributions, and other allowable deductions.
- Michigan Tax Rate: Apply the Michigan state tax rate of 4.25% to your taxable income to calculate your tax liability.
- Quarterly Payments: Divide your total tax liability into four equal payments and submit them throughout the year by the quarterly deadlines.
Filing Deadlines for 2023
Estimated tax payments for Michigan are made quarterly. The deadlines for 2023 are:
- April 15: Covers income earned from January 1 to March 31.
- June 15: Covers income earned from April 1 to May 31.
- September 15: Covers income earned from June 1 to August 31.
- January 15, 2024: Covers income earned from September 1 to December 31.
Failing to meet these deadlines can result in penalties and interest, so it’s crucial to file on time.
How to File the MI-1040ES Form
Michigan offers multiple ways to file and submit your estimated tax payments:
- Online Filing: Michigan taxpayers can file their MI-1040ES form electronically through the Michigan Treasury Online (MTO) system. This option allows for fast and secure payments, and you can set up automatic withdrawals for future payments.
- Mailing a Paper Form: If you prefer to file by mail, you can download and print the MI-1040ES form from the Michigan Department of Treasury website. Be sure to mail your completed form along with a check or money order to the Michigan Department of Treasury.
- Payment Plans: If you’re unable to pay the full amount owed, Michigan offers payment plans that can help break down your tax liability into manageable payments over time.
Common Mistakes to Avoid
While filling out the Michigan Estimated Tax Form, it’s easy to make a few common mistakes that could result in penalties or incorrect filings:
- Underestimating Income: Be sure to provide an accurate estimate of your total income for the year. Underestimating your income could result in penalties and interest charges if you underpay.
- Missing Deadlines: Failing to make quarterly payments on time can result in penalties. Set up reminders or schedule automatic payments to avoid missing deadlines.
- Not Adjusting for Income Fluctuations: If your income changes significantly during the year, be sure to adjust your estimated tax payments accordingly. This will help prevent underpayment or overpayment.
Penalties for Underpayment
If you don’t make the necessary estimated payments, or if you underpay your tax liability, the Michigan Department of Treasury may impose penalties. The penalty is calculated based on the amount you underpaid and how late the payment was made. To avoid these penalties, it’s recommended to either pay at least 90% of your current year’s tax liability or 100% of the previous year’s tax liability.
How Austin & Larson Tax Resolution Can Help
Navigating Michigan’s estimated tax payment process can be overwhelming, especially for individuals with multiple income sources or fluctuating earnings. That’s where Austin & Larson Tax Resolution comes in. We specialize in helping Michigan taxpayers calculate, file, and manage their estimated tax payments, ensuring they stay compliant with state laws and avoid penalties.
Whether you need help understanding how much to pay, setting up an easy-to-manage payment schedule, or resolving issues related to late or missed payments, our team of experienced tax professionals is here to assist you.
We understand the complexities of Michigan’s tax system, and we’re committed to providing personalized guidance to help you meet your tax obligations without unnecessary stress.
Contact us today for assistance with your Michigan estimated taxes and take the stress out of your tax obligations.
Looking For A Fresh Start in Michigan?
We Are Here To Help!
Should the weight of tax debt be pressing down on you, we urge you to connect with us to avail of a no-cost consultation. Our objective revolves around untangling tax debt complexities for clients entangled in an array of tax-related dilemmas. It would bring us immense satisfaction to furnish you with solutions to your inquiries and aid you in swiftly settling your tax debt matters.
Our Process | Simple, Fast & Stress Free
Step 1: Initial Contact
During your first call to our office, we will ask you a brief background of your current tax situation and determine the most convenient office location for your free initial consultation.
Step 2: Free Consultation
We will meet with you to review and discuss your individual facts and circumstances to create a customized tax relief plan for your situation and the next steps to take to resolve your tax situation.
Step 3: Begin Resolving Debt
Once we have decided to move forward, we will immediately begin working with the IRS on your behalf to resolve your case as quickly as possible. We will also provide advice and the steps you need to take to ensure you do not acquire any additional debt while we work to settle your case. From the moment you retain our firm, we will be your voice with the IRS and the point of contact for all taxing entities.
Step 4: Monitor Case Status
Some tax debt cases can be resolved quickly, while others may have quite a bit of back and forth contact with the IRS to reach full resolution. We will regularly monitor your case and keep you in the loop along the way so you are never left in the dark.
Step 5: Tax Freedom!
It is our goal not only to resolve your current tax debt but also to make sure that you don’t have any further tax problems. After we have reached resolution with your case, you will be fully equipped with best practices to avoid future tax issues of any kind.
We’re Here To Help
We understand how frustrating tax related issues can be and we are here to help resolve your tax payments once and for all. Our team has extensive experience working with the IRS on our clients’ behalf to fully resolve tax liabilities and we would love the opportunity to do the same for you. Reach out for a free consultation today!
Weekdays 8am-6pm
Brighton, Saginaw, Lansing, and Ann Arbor, MI
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Fill out the form below or give us a call today to speak with one of our tax experts!
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