MI State Tax-Did not pay taxes before April 15, 2024 at the time of filing extension

Forum|Forum|1 year ago
July 30, 2025
4 replies
116 views

I filed extension for Federal and State of Michigan for 2024. I paid taxes that I thought I owed to Federal but based on my calculation I was supposed to receive refund from MI so I did not pay MI. However, I am now trying to file State of Michigan return and turned out that I owed MI $194.

However, I met the all of the following below;

(source: https://www.michigan.gov/taxes/questions/iit/accordion/estimate/why-am-i-being-charged-penalty-and-interest-for-underpayment-of-estimated-income-tax-1#:~:text=Penalty%20is%2025%25%20for%20failing,1%25%20above%20the%20prime%20rate.&text=(MI%2D2210)-,Why%20am%20I%20being%20charged%20penalty%20and,underpayment%20of%20estimated%20income%20tax%3F)

I paid

90% of your current year's tax liability
100% of the previous year's tax liability
110% of your previous year's tax liability if your previous year's adjusted gross income is more than $150,000 ($75,000 for married filing separately)

Since I paid enough taxes to meet all of the above, does it mean that I won't owe any penalty even if I owe MI $194 for 2024 tax and paying past April 15, 2024?

Please clarify. Thank you.

Best answer by LenaH

Expert Reviewed

Since you paid enough taxes to meet the thresholds specified, you should not owe penalties and interest on the underpayment of estimates. However, per the MI-1040 instructions, you may still owe interest on the amount of taxes due from the due date through the date the taxes were paid.

LenaH

Answer

Alumni - Expert

Expert Reviewed

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sakilee0209Author

Level 2

Thank you for your answer. I reviewed my calculation of underpaid tax before April 15, 2024, it's actually $3. when I actually file my return, would I only pay $3 or $3 and interest on it?

If I need to pay interest, how do I calculate?

Would I pay $3 when filing my state return but pay the interest separately to the State of MI?

Thank you,

NCperson

Level 15

Expert Reviewed

if the state decides to bill you for the $3 underpayment, they will send you a letter. I wouldn't worry about it. The interest is under $1 so it won't be worth their effort to bill you.

you pay what the tax return says to pay; do NOT add $3 to it. Just pay what is in Box 34 (Michigan form) to the right of the words "YOU OWE".
@sakilee0209