Withholdings on MI-2210

[KT99]

When completing the Federal form 2210, TT asks if I want "to treat the tax withheld as paid when it was actually withheld."  Is there a way to have the MI-2210 form do the same thing?  I have a withholding in January that I need to apply to Q1 (only) and not be spread across the year.

[LenaH]

No, you cannot make this election on your Michigan return. The withholdings are spread out across the year and the estimated taxes (if applicable) are applied in the quarter in which they are paid. 

You can elect to annualize your income. This is generally used when you receive income unevenly during the year (e.g., from a seasonal business, capital gain, severance pay or bonus).  The Form MI-2210 determines what quarter your payments are due based on the income you input.  To be eligible, you need precise records of your 2021 income and deductions. 

To get to the correct area, please follow the instructions below:

1. Open your return.
2. Select State.
3. Open your Michigan return.
4. On the page, Your 2021 Michigan taxes are ready for us to check, click Edit next to Other situations. 
5. Click Revisit or Start next to Underpayment of Estimated Tax. 
6. Follow the on-screen instructions. 

On the screen Annualizing Your Income, you can elect to annualize your income to see if you can reduce your penalties.

On the next screen, Annualized Income, you will enter your uneven income throughout the year. You have to break up your income by the following dates:

• 1/1-3/31
• 1/1-5/31
• 1/1-8/31
• 1/1-12/31

Please keep in mind that taxpayers who annualize must include 25 percent of their total tax withheld in each column of the MI-2210, line 10, or submit documentation to substantiate uneven income tax withholding. 

[KT99]

I recognize that is the way TT currently works for this Michigan form  but I need to have all my withholding in the first period.  I received a single paycheck for the year in January and, therefore, need to have all my withholding in January.  I have the documentation to support that.  How can I get TT to do it that way?

[BillM223]

As a workaround, you can try this:

1. Remove the MI withholding from your W-2 in TurboTax.

2. Go to Deductions & Credits->Estimated Taxes->State estimated taxes for 2021, and click on Start or Update.

3. On the first quarter put your withholding. If there is already an estimated tax payment, then add the MI withholding to what is already there.

This should carry through to the MI-2210.

Please review the rest of the state return carefully, as I make no guarantees as to what other things it might affect.