How to Fill Out Michigan Form MI-1065 (w/Examples) + FAQs

Michigan Form MI-1065 is the Michigan Partnership Return of Income that every partnership and multi-member LLC taxed as a partnership with Michigan-source income must file with the Michigan Department of Treasury under the Michigan Income Tax Act, MCL 206.1 et seq.. The current revision is the 2025 tax year MI-1065 (Form 807, Rev. 09-25) which is filed during 2026, and using the wrong year version is the single fastest way to get your return rejected.

Roughly 95,000 partnerships file Michigan partnership returns each year, and the Treasury reports that nearly 18% are kicked back for missing federal Form 1065 attachments, missing partner schedules, or apportionment math errors. This article walks you through every line, every box, and every signature on the official MI-1065 PDF, with three full named-person examples and a field-level checklist a 30-year preparer would use.

Here is what you will learn:

• 📋 Exactly which partnerships must file MI-1065 and which can skip it
• 🧾 The 8 documents you need before you open the form
• ✍️ Line-by-line entries for the header, income, apportionment, and tax sections
• 🌎 How to handle multi-state apportionment, nonresident partners, and the Flow-Through Entity (FTE) tax election
• ⚠️ The 10 mistakes Treasury flags most often and the penalties they trigger

What the Form Is and Who Must File It

Michigan Form MI-1065 is the state-level companion to federal Form 1065 and reports a partnership’s Michigan-sourced income, deductions, apportionment, and partner-level distributive shares. The form is filed by every general partnership, limited partnership, limited liability partnership, and multi-member LLC classified as a partnership for federal tax purposes that has any business activity, property, payroll, or sales in Michigan. Single-member LLCs do not file MI-1065; they report on the member’s own return under the Michigan disregarded entity rules.

The receiving agency is the Michigan Department of Treasury, Income Tax Division, and the governing statute is the Michigan Income Tax Act of 1967, specifically MCL 206.51 (individual rate flow-through), MCL 206.815 (FTE election), and MCL 206.703 (withholding on nonresident partners). The deadline is the last day of the 3rd month after the partnership’s tax year end, which is March 31, 2026 for calendar-year 2025 filers, with a 6-month extension available through Form 4, Application for Extension of Time.

Filing is mandatory even when the partnership owes zero tax, because Michigan uses MI-1065 to reconcile each partner’s distributive share against their MI-1040 or corporate return. Partnerships that elected into the Flow-Through Entity Tax on Form 5772 still file MI-1065, but they also file Form 5772 to pay tax at the entity level and pass a refundable credit to partners on Form 5774. Skipping MI-1065 even with the FTE election triggers an automatic non-filer notice within 90 days of the deadline.

A partnership with no Michigan nexus — no property, no payroll, no sales, no partners domiciled in Michigan — does not file. But the moment a single Michigan resident partner exists, or a single dollar of Michigan sales is made, MI-1065 is required for that tax year. Final-year partnerships also file MI-1065, with the Final Return box checked at the top of page 1 and a copy of the federal final 1065 attached.

Before You Start: Documents and Information You Need

Gathering everything before you open the PDF prevents the most common cause of rejection: starting the form without the federal return finished. The MI-1065 pulls directly from federal numbers, so the federal 1065 must be complete, signed, and filed (or ready to file simultaneously) before you can populate Michigan lines accurately. Below is the pre-filing checklist every preparer should run through.

• Completed federal Form 1065 with all schedules. Lines 1–22 of MI-1065 mirror federal income items, and Treasury cross-checks them against IRS data. Missing this means an automatic 30-day correspondence hold.
• All federal Schedules K-1 (Form 1065). You need every partner’s name, SSN/FEIN, address, ownership percentage, and distributive share to complete the Michigan partner schedule.
• Federal Employer Identification Number (FEIN). The 9-digit FEIN issued by the IRS appears in the header. Without it, the return is rejected at intake.
• Michigan Treasury account number. If the partnership has previously filed sales/use/withholding, the Treasury Account Number (TR Number) speeds processing.
• Apportionment data. Michigan sales, total sales everywhere, plus any property and payroll figures if you elect the alternate apportionment method under MCL 206.661.
• Partner residency information. You need each partner’s state of residency on the last day of the partnership’s tax year to compute nonresident withholding under MCL 206.703.
• Prior-year MI-1065. Carryover items, prior apportionment percentages, and FTE credit reconciliations all reference last year’s return.
• Form 5772/5774 if you elected FTE tax. Partnerships that opted into the entity-level tax must reconcile MI-1065 with their FTE filings, or partners lose their refundable credit.
• Banking information for direct deposit/debit. Routing and account numbers are required if you want refunds returned electronically or balances paid through Michigan Treasury Online (MTO).
• Power of Attorney (Form 151) if a preparer signs. Without it, Treasury will not discuss the return with anyone other than the general partner.

Skipping any one of these items rarely sinks a return on its own, but missing two or more almost guarantees a Treasury correspondence letter within 60 days. The cleanest filers stage every document in a single folder, named Partnership-Name_TY2025_MI1065, before they touch the form.

Where to Get the Form and How to Access It

The only authoritative copy of MI-1065 lives on the Michigan Department of Treasury website, under the 2025 Income Tax Forms — Partnership page. Download the PDF directly so you have the Rev. 09-25 version printed in the bottom-left corner of page 1; older revisions get auto-rejected because line numbering and the FTE credit boxes change year to year. The PDF is fillable in Adobe Acrobat Reader, but Treasury recommends printing and signing in blue or black ink if you mail the return.

Approved tax software providers — TurboTax Business, Drake, Lacerte, UltraTax, and CCH Axcess — all support electronic filing of MI-1065 through the IRS Modernized e-File (MeF) system, which Michigan piggybacks on through its MeF program. E-filing is the fastest channel: returns posted through MeF are usually acknowledged within 48 hours, while paper returns take 6–8 weeks to post. For preparers who file 11 or more partnership returns per year, e-filing is mandatory under Michigan’s preparer e-file rule.

If you are a do-it-yourself filer, you can also create a free Michigan Treasury Online (MTO) account, link your partnership’s FEIN, and upload a completed PDF. MTO does not do the math for you, but it provides a date-stamped confirmation that satisfies the proof-of-filing requirement. Whatever channel you use, keep the acknowledgment number, MeF submission ID, or USPS Certified Mail receipt for at least six years; Treasury can reach back four years on routine audits and six years on substantial-understatement claims.

Step-by-Step: How to Fill Out MI-1065 Line by Line

The MI-1065 is two pages of partnership-level reporting plus a partner schedule, and it follows the same logical flow each year: header, income, additions and subtractions, apportionment, tax, and partner allocation. Work through it in order; skipping ahead almost always causes carryforward errors between Part 1 (Income) and Part 3 (Tax).

Header — Tax Year and Identifying Information

The header asks for the tax year covered by the return, the partnership’s full legal name, address, FEIN, and the NAICS business activity code. Enter the tax year in the format 01-01-2025 through 12-31-2025 for a calendar-year filer, or the actual fiscal-year dates for non-calendar filers. The legal name must match exactly what is on file with the IRS, including punctuation and abbreviations. Greenline Logistics LLC writes its name as it appears on its EIN letter, with no extra spaces.

A common edge case is a partnership that changed its name during the year. In that case, write the current legal name on the form and check the Name Change box on the upper right, then attach a copy of the IRS name-change confirmation letter. The most common header mistake is entering an old DBA instead of the legal name, which causes an FEIN-to-name mismatch and a processing hold that averages 21 days. A misconception filers carry is that the address must be the partnership’s principal office; Treasury actually wants the mailing address where Treasury notices should be sent, which can be the preparer’s office if a Form 151 POA is on file.

Boxes A–F — Entity Type, Filing Status, and Special Designations

Boxes A–F across the top of page 1 capture the entity type (general partnership, LP, LLP, LLC), whether this is an Initial Return, Final Return, Amended Return, or Short Period Return, and whether the partnership has elected the Flow-Through Entity Tax. Check exactly one entity-type box and any applicable filing-status boxes. Northstar Capital Partners LP checks LP in Box A and leaves the others blank because it is an ongoing calendar-year filer.

The nuance here is the Final Return box: checking it tells Treasury to close the partnership’s account and stop expecting future MI-1065s, so never check it for a year where the partnership simply had no activity but still legally exists. The most common mistake is checking Amended without attaching a statement explaining what changed, which causes Treasury to reject the amendment under Revenue Administrative Bulletin 2017-7. The misconception is that the FTE checkbox replaces filing Form 5772; it does not — the checkbox merely flags the return for Treasury’s reconciliation system.

Line 1 — Ordinary Business Income (Loss) from Federal Form 1065

Line 1 asks you to copy ordinary business income or loss directly from federal Form 1065, Line 22. Enter the number exactly as it appears on the federal return, including parentheses for losses. Greenline Logistics LLC reports federal ordinary income of $184,500, so it writes 184,500 on Line 1.

The edge case to watch is a partnership that filed an amended federal 1065 mid-year; in that case use the most recent federal figure and attach a copy of the amended federal return. The most common mistake is pulling the number from Schedule K instead of Line 22, which understates income because Schedule K already separates out interest, dividends, and rental income. The misconception filers hold is that Line 1 should equal book income — it should equal federal taxable ordinary income, which often differs from book by depreciation, meals, and Section 179 timing.

Lines 2–7 — Additions to Income

Lines 2 through 7 add back items that Michigan taxes but the federal return does not, including state and local income taxes deducted on the federal 1065, federal bonus depreciation in excess of Michigan’s allowed amount, and out-of-state municipal bond interest. Enter each addition on its proper line and total them on Line 7. Northstar Capital Partners LP deducted $12,000 of state income tax on its federal 1065, so it enters 12,000 on Line 2.

The nuance is Michigan’s bonus depreciation conformity, which decoupled in 2003 under MCL 206.623; partnerships using federal 100% bonus must compute the Michigan add-back on a separate worksheet. The most common mistake is forgetting to add back state taxes deducted federally, which understates Michigan income and triggers a notice with interest at the current Treasury rate of 8.85% annually. The misconception is that municipal bond interest from any state is exempt — only Michigan municipal bond interest qualifies; out-of-state munis are added back on Line 5.

Lines 8–13 — Subtractions from Income

Lines 8–13 subtract items Michigan exempts but the federal return includes, such as U.S. government bond interest, Michigan municipal bond interest already included federally, and the Michigan-specific business income deduction. Total subtractions on Line 13. Aisha Patel’s design partnership holds $4,200 of U.S. Treasury interest, so she enters 4,200 on Line 8.

The edge case is a partnership that holds both U.S. and foreign sovereign debt; only U.S. obligations qualify for the subtraction. The most common mistake is subtracting all interest income rather than only U.S. obligation interest, which overstates the subtraction and is a top-five audit flag. The misconception is that REIT dividends qualify as U.S. government interest — they do not, even if the underlying REIT holds Treasury bonds.

Line 14 — Michigan Income Subject to Apportionment

Line 14 equals Line 1 plus Line 7 minus Line 13, and it is the figure that gets multiplied by the apportionment percentage to arrive at Michigan-taxable income. Enter the math result; if it is negative, enter it in parentheses. Greenline computes 184,500 + 8,000 − 4,200 = 188,300 and writes that on Line 14.

The nuance is that a negative Line 14 still requires an apportionment percentage on the next page; do not skip apportionment just because there is a loss. The most common mistake is arithmetic error between Lines 7, 13, and 14, which Treasury catches in 100% of returns through automated math checks and corrects with an interest-bearing notice. The misconception is that Line 14 is the partnership’s tax base — it is the pre-apportionment base, and only the Michigan share flows to tax.

Line 15 — Apportionment Percentage from Schedule of Apportionment

Line 15 is the Michigan apportionment percentage carried over from the Schedule of Apportionment on page 2, computed as Michigan sales divided by total sales everywhere, expressed to four decimal places (e.g., 0.6783 for 67.83%). Single-state partnerships with 100% Michigan activity enter 1.0000. Northstar, which operates in Michigan, Ohio, and Indiana, enters 0.4521 after computing $4,521,000 Michigan sales / $10,000,000 total sales.

The nuance is the throwback rule for sales shipped from Michigan to states where the partnership lacks nexus; those sales are thrown back to Michigan and increase the numerator. The most common mistake is excluding service revenue from the sales factor, but Michigan uses market-based sourcing for services under MCL 206.665, so services delivered to Michigan customers are Michigan sales. The misconception is that property and payroll factors still apply — Michigan moved to a single sales factor in 2012 and three-factor apportionment is no longer available except for limited financial institutions.

Line 16 — Michigan Income After Apportionment

Line 16 is Line 14 multiplied by Line 15. Greenline multiplies 188,300 × 1.0000 = 188,300; Northstar multiplies 620,000 × 0.4521 = 280,302. Round to the nearest whole dollar.

The edge case is partnerships with nonbusiness income (rental real estate held for investment, certain capital gains), which is allocated rather than apportioned and reported on a separate line under MCL 206.671. The most common mistake is rounding the apportionment percentage to two decimals, which can shift Michigan income by thousands of dollars. The misconception is that Line 16 is the partnership’s tax — partnerships pay no entity tax on Line 16 unless they made the FTE election; the figure simply allocates to partners on the partner schedule.

Lines 17–22 — Flow-Through Entity Tax Reconciliation

Lines 17–22 appear only on returns where the partnership elected the Flow-Through Entity Tax under Public Act 135 of 2021. They reconcile the FTE tax paid on Form 5772 with the credit passed through to partners on Form 5774. Enter the FTE tax computed on Form 5772 Line 28 on MI-1065 Line 17, then total payments on Line 18 and any FTE refund/balance on Lines 21–22. Northstar elected FTE and paid $23,800, so it enters 23,800 on Line 17.

The nuance is that the FTE election is irrevocable for three tax years once made; partnerships cannot opt out year-by-year. The most common mistake is double-counting the FTE tax as both an entity payment and a partner credit, which causes Treasury to disallow the partner credit and issue assessments to every partner. The misconception is that the FTE credit is nonrefundable — it is fully refundable at the partner level, which is the entire point of the election.

Schedule of Apportionment (Page 2)

The Schedule of Apportionment computes the sales factor with three lines: Michigan sales, total sales everywhere, and the resulting percentage. Use gross receipts including services, royalties, rents, and interest from business activity, and apply market-based sourcing for services and intangibles. Northstar lists $4,521,000 Michigan sales and $10,000,000 total sales for a 0.4521 percentage.

The edge case is intercompany sales between commonly controlled partnerships, which must be eliminated under MCL 206.661(4). The most common mistake is using federal Form 1065 gross receipts directly without throwback adjustments, which understates the Michigan numerator. The misconception is that zero Michigan sales eliminates the filing requirement — a partnership with Michigan partners or Michigan property still files even with a 0.0000 sales factor.

Schedule of Partners (Page 3)

The Schedule of Partners lists every partner with name, address, SSN or FEIN, residency state, ownership percentage, and distributive share of Michigan-apportioned income. Each row corresponds to one partner; use additional sheets if there are more than 8 partners. Greenline lists its two members, Sarah Greenfield (50%, MI resident) and Tomás Reyes (50%, IL resident), on rows 1 and 2.

The nuance is that nonresident partners trigger a withholding obligation under MCL 206.703(3); the partnership must withhold 4.25% of the nonresident’s Michigan distributive share unless that partner files a Form 4119 Nonresident Withholding Exemption. The most common mistake is omitting partner SSNs because they are sensitive — Treasury rejects the schedule outright. The misconception is that a partnership partner (tiered partnership) is exempt from listing — it must be listed with its FEIN, and the upper-tier partnership becomes responsible for downstream withholding.

Signature Block and Preparer Information

The signature block at the bottom of page 2 must be signed by a general partner or LLC member-manager, dated, and accompanied by a daytime phone number. Paid preparers sign the preparer block with their PTIN and firm EIN. Sarah Greenfield signs as managing member of Greenline on March 15, 2026, and her CPA Marcus Webb, PTIN P01234567 signs the preparer line.

The edge case is electronic signatures: Michigan accepts e-signatures only through approved MeF software using IRS Form 8879-PE equivalents, not on paper-filed returns. The most common mistake is a limited partner signing instead of a general partner; only general partners or member-managers have signing authority under MCL 449.1403. The misconception is that an unsigned return filed before the deadline still counts as timely — it does not, and Treasury treats unsigned returns as non-filed for penalty purposes.

Three Filled-Out Examples Using Real Scenarios

Scenario 1 — Greenline Logistics LLC (Michigan-Only, Two Partners)

Sarah Greenfield and Tomás Reyes operate a Michigan-only freight brokerage as a 50/50 LLC. They have $184,500 of federal ordinary income, $4,200 of U.S. Treasury interest, and no out-of-state activity.

Form Section	What Greenline Enters
Header — Name	Greenline Logistics LLC
Header — FEIN	87-1234567
Box A — Entity Type	LLC (taxed as partnership)
Line 1 — Federal Ordinary Income	184,500
Line 7 — Total Additions	0
Line 13 — Total Subtractions	4,200
Line 14 — Michigan Base	180,300
Line 15 — Apportionment %	1.0000
Line 16 — Apportioned Income	180,300
Schedule of Partners	Sarah Greenfield, MI, 50%, $90,150; Tomás Reyes, IL, 50%, $90,150
Withholding on Tomás	3,831 (4.25% of $90,150)
Signature	Sarah Greenfield, Member-Manager, 3/15/2026

Scenario 2 — Northstar Capital Partners LP (Multi-State, FTE Election)

Northstar is a 4-partner investment LP operating in Michigan, Ohio, and Indiana, with $620,000 of federal ordinary income and an FTE election under PA 135.

Form Section	What Northstar Enters
Header — Name	Northstar Capital Partners LP
Box A — Entity Type	LP
Box F — FTE Election	Checked
Line 1 — Federal Ordinary Income	620,000
Line 2 — State Tax Add-back	12,000
Line 14 — Michigan Base	632,000
Sales Factor — MI Sales	4,521,000
Sales Factor — Total Sales	10,000,000
Line 15 — Apportionment %	0.4521
Line 16 — Apportioned Income	285,727
Line 17 — FTE Tax (Form 5772)	23,800
Schedule of Partners	4 partners listed with K-1 distributive shares

Scenario 3 — Patel Design Group (Final Return, Nonresident Partners)

Aisha Patel and her Ohio-resident partner closed their design partnership on June 30, 2025, after 12 years.

Form Section	What Patel Design Enters
Header — Tax Year	01-01-2025 through 06-30-2025
Box B — Final Return	Checked
Box C — Short Period	Checked
Line 1 — Federal Ordinary Income	48,200
Line 14 — Michigan Base	48,200
Line 15 — Apportionment %	0.8500
Line 16 — Apportioned Income	40,970
Schedule of Partners	Aisha Patel, MI, 60%; Daniel Cho, OH, 40%
Withholding on Daniel	697 (4.25% of $16,388)
Attached	Federal final 1065, dissolution certificate
Signature	Aisha Patel, General Partner, 9/15/2025

How to File the Completed Form

Michigan offers three filing channels, and each has its own fees, processing times, and proof-of-filing requirements. Choose based on volume, complexity, and how quickly you need confirmation.

E-file via MeF software. Use any Michigan-approved MeF provider such as Drake, Lacerte, or UltraTax. There is no Treasury fee, but software costs range from $40 to $300 per return. Acknowledgments arrive within 24–48 hours, and the MeF Submission ID is your proof of filing — save it as a PDF.

Upload to Michigan Treasury Online (MTO). Create a free account at mto.treasury.michigan.gov, link your FEIN, and upload the completed PDF plus all attachments. There is no fee. Processing takes 2–4 weeks, and MTO emails a confirmation number that serves as proof of filing.

Mail paper return. Send the signed original plus all attachments to Michigan Department of Treasury, Lansing, MI 48929 if no payment is enclosed, or to Michigan Department of Treasury, P.O. Box 30806, Lansing, MI 48909 if payment is enclosed. Use USPS Certified Mail with Return Receipt ($4.85 as of 2026) and keep the green card as proof of filing. Processing takes 6–8 weeks.

Payments can be made by check (payable to State of Michigan), by ACH debit through MTO, or by credit card through Official Payments (with a 2.35% convenience fee). Any balance due must be paid by the original due date — March 31 for calendar-year filers — even if you extend the return on Form 4. Late payments accrue interest at the current Treasury rate of 8.85% annually plus a 5%/month failure-to-pay penalty capped at 25%.

What Happens After You File

Within 24–48 hours of e-filing, the MeF system returns either an Accepted or Rejected status; rejected returns include a code identifying the problem (most often FEIN/name mismatch or missing federal 1065 attachment). Paper returns post to Treasury’s system within 6–8 weeks, after which the partnership shows on MTO as filed. If you owe nonresident withholding, Treasury credits each nonresident partner’s individual Michigan account within 60–90 days of posting.

Treasury sends a Notice of Adjustment if the return contains arithmetic errors, mismatched federal numbers, or apportionment problems. You have 60 days from the notice date to respond before the adjustment becomes final and assessable. For substantive disputes, you can request an informal conference under MCL 205.21 within 60 days of the assessment.

The statute of limitations runs 4 years from the later of the filing date or the original due date for routine adjustments, and 6 years when income is understated by more than 25%. Keep the return, all attachments, and the proof-of-filing for at least six years; partnership audits are increasingly common in Michigan because the FTE election creates partner-level credit reconciliations that Treasury double-checks.

Refunds arrive within 4–6 weeks for e-filed returns and 10–12 weeks for paper. Direct deposit shaves about 2 weeks off either timeline. Refunds under $1 are not issued, and refunds over $25,000 require a manual review that can extend processing to 16 weeks.

Mistakes to Avoid When Filling Out the Form

1. Filing on the wrong revision. Using the 2024 form for a 2025 return causes auto-rejection and a 30-day delay.
2. Forgetting the federal 1065 attachment. Treasury requires a signed copy of the federal 1065 with every MI-1065; missing it triggers a correspondence hold.
3. Skipping the Schedule of Partners. Returns without a complete partner schedule cannot allocate income, which creates partner-level mismatch notices.
4. Wrong apportionment percentage. Rounding to fewer than four decimals or excluding service revenue understates Michigan income and invites assessment.
5. Missing nonresident withholding. Failing to withhold 4.25% on nonresident partner distributive shares creates partnership-level liability under MCL 206.703.
6. Double-counting FTE tax. Reporting the FTE payment as both entity tax and partner credit triggers disallowance of the partner credit.
7. Unsigned return. A return without a general partner signature is treated as non-filed and accrues full late-filing penalties.
8. Wrong mailing address. Sending a balance-due return to the no-payment address delays posting by 4–6 weeks.
9. Mismatched name and FEIN. Treasury cross-checks against IRS records; a mismatch holds the return for 21 days minimum.
10. Late extension. Form 4 must be filed by the original due date; filing it late provides no extension and exposes the partnership to failure-to-file penalties.
11. Bonus depreciation conformity errors. Federal 100% bonus must be added back to the extent it exceeds Michigan’s allowed amount.
12. Final return checked in error. Closing a still-active partnership account creates re-registration headaches.

Do’s and Don’ts

Do’s

• Do download the form fresh from the Treasury partnership forms page every year because line numbers change.
• Do complete the federal 1065 first because every Michigan line ties to a federal figure.
• Do round the apportionment percentage to four decimal places to avoid rounding-related Treasury notices.
• Do withhold 4.25% on nonresident partner distributive shares unless you have a valid Form 4119 on file.
• Do e-file when possible because MeF acknowledgments are returned within 48 hours versus 6–8 weeks for paper.
• Do retain the return and proof-of-filing for at least six years to cover the longer statute of limitations.

Don’ts

• Don’t paraphrase field labels because Treasury’s OCR scanner expects exact matches.
• Don’t sign the return as a limited partner because only general partners and member-managers have signing authority.
• Don’t deduct state income tax twice; if it was deducted federally, add it back on Line 2.
• Don’t skip MI-1065 just because you elected FTE — both filings are required.
• Don’t mail balance-due returns to the no-payment P.O. Box because it adds 4–6 weeks of processing time.
• Don’t rely on memory for apportionment data; pull sales-by-state from your accounting system every year.

Pros and Cons of Filing on Your Own vs. With Help

Pros of Filing Pro Se

• No preparer fees, which can run $800–$2,500 per partnership return.
• Direct knowledge of partnership operations speeds data gathering.
• Faster turnaround for simple, single-state partnerships with two or three partners.
• Full control over partner schedule entries and disclosures.
• Builds institutional knowledge for future years.

Cons of Filing Pro Se

• Apportionment errors are the #1 audit trigger and they require deep familiarity with MCL 206.661 sourcing rules.
• FTE election reconciliation is mechanically complex and usually needs software.
• Nonresident withholding obligations are easy to miss and create partnership-level liability.
• Paper filers lose the 48-hour MeF acknowledgment.
• No professional shield if Treasury opens an audit.

FAQs

Do I have to file MI-1065 if my partnership has no Michigan income?

No. A partnership with no Michigan property, payroll, sales, or resident partners has no nexus and is not required to file MI-1065 for that tax year.

Do I file MI-1065 if I elected the Flow-Through Entity Tax?

Yes. The FTE election does not replace MI-1065; you file both MI-1065 and Form 5772 for the entity tax, plus Form 5774 for partner credits.

Is MI-1065 the same as the federal Form 1065?

No. MI-1065 is the Michigan partnership return; it pulls numbers from federal Form 1065 but reports Michigan-specific apportionment, additions, and subtractions.

Do I write my legal name or DBA in the partnership name field?

No. Always write the legal name on file with the IRS, not the DBA, because Treasury cross-checks against the IRS FEIN database.

Should I round the apportionment percentage on Line 15 to two decimals?

No. Round to four decimal places (e.g., 0.4521) because two-decimal rounding can shift Michigan income by thousands of dollars and triggers Treasury math notices.

Do I list partnership partners on the Schedule of Partners?

Yes. Tiered partnerships list the upper-tier partnership with its FEIN, ownership percentage, and Michigan distributive share.

Is the FTE tax credit refundable to partners?

Yes. The Flow-Through Entity Tax credit passed through on Form 5774 is fully refundable at the partner level under PA 135 of 2021.

Do limited partners sign MI-1065?

No. Only general partners or LLC member-managers may sign; a limited partner signature causes Treasury to treat the return as unsigned.

Can I e-file MI-1065 directly through Treasury without software?

No. Michigan does not offer free direct e-filing for partnerships; you must use approved MeF software or upload a PDF through MTO.

Do I have to attach federal Schedules K-1?

Yes. Treasury requires copies of every federal K-1 to verify the Schedule of Partners; missing K-1s trigger an immediate correspondence hold.

Is there a fee to file MI-1065?

No. Michigan does not charge a filing fee for MI-1065, though software costs and certified-mail fees may apply depending on the channel.

Do I withhold on a nonresident partner who lives in a reciprocity state?

Yes. Michigan’s individual reciprocity agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin apply to wages, not to partnership distributive shares, so 4.25% withholding still applies.

Can I amend MI-1065 after filing?

Yes. File a corrected MI-1065 with the Amended box checked and a written explanation of the changes within 4 years of the original due date.

What if my partnership dissolved mid-year?

Yes, you still file. Check the Final Return and Short Period boxes, enter the actual tax-year dates, and attach the federal final 1065 plus the Michigan dissolution certificate.